Accor Releases Fiscal-Year 2022 Results

After 2 years affected by the health crisis, the 2022 published a strong and sustainable rebound in Accor’s activity The efficiency of hotels over the 2nd half of the year exceeded pre-crisis levels in nearly every Accor area. Just Asia, an area affected by China’s zero-COVID policy up until year-end, is still listed below 2019 activity levels.

Worldwide, Accor’s healing was mainly driven by domestic visitors, with levels surpassing those of2019 Whereas worldwide tourists, even whose number grows greatly, stopped working to go back to the level of2019 As observed in current quarters, the healing was led by a strong boost in rates, sustained by need, and emphasized by inflation.

In 2022, Accor opened 299 hotels, representing 43,000 spaces, representing a net natural development in the network of 3.2 percent over the 12- month duration. At year-end 2022, the group had a hotel portfolio of 802,269 spaces (5,445 hotels) and a pipeline of 216,000 spaces (1,247 hotels).

Sébastien Bazin, chairman and CEO of Accor, stated, “Tourism recuperated considerably in 2022 and our efficiencies, up highly in all
areas, showed that rebound. We surpassed our monetary and non-financial targets and can want to the future with calmness. Our brand names are appealing, our circulation is effective, our groups are skilled and inspired, and our company has actually been adjusted to catch future development much more efficiently. These strengths integrated with the authentic culture of the group, putting individuals and skills in the heart of its design, offer implying to our action. In 2023, our aspiration is to keep our development and strengthen our management by continuing to develop the codes of the hospitality market and stay the picked partner of our hotel owners and clients.”

Consolidated Revenue

In 2022, the group tape-recorded an income of EUR4,224 million, up 80 percent like-for-like versus full-year2021 This development breaks down into an enhancement of 89 percent for HotelServices and 63 percent for hotel Assets & & Other. To supply a RevPAR contrast, the group reported a boost of 4 percent in like-for-like income versus full-year 2019.

Changes in the scope of debt consolidation (acquisitions, disposals, and reopenings) contributed favorably with EUR72 million generally due to the takeover of Paris Society and the resuming of the Pullman Montparnasse.

Currency results had a favorable effect of EUR189 million, generally connected to the U.S. dollar (11 percent).

HotelServices Revenue

HotelServices, that includes charges from Management & & Franchise( M&F )and Services to Owners, created EUR3,194million in profits, up89 percent like-for-like versus full-service 2021 (up 5 percent like-for-like versus full-year 2019). This boost shows the strong healing in organization for many years.

Management & & Franchise( M&F) profits stood at EUR1,052million, up 93 percent like-for-like versus full-year 2021 (down 1% percent like-for-like versus full-year 2019), with local efficiencies associated to health crisis circumstances in the thought about nations.

In some cases, the lower enhancement in M&F income compared to RevPAR can be described by the slower healing in reward charges based upon the hotel operating margin created from management agreements. This arises from a lower service activity in 2022 on the other hand with 2019 in Asia-Pacific and Northern Europe areas.

Consolidated RevPAR reported an international boost of 15 percent throughout Q4 2022 compared to the very same duration in 2019, enhancing on the outstanding efficiency in Q3 (up 14 percent). Group RevPAR for the full-year 2022 was 2 percent greater than in 2019.

South Europe, driven by France, reported a 12 percent boost in RevPAR in Q4 2022 compared to Q42019 Company efficiency increased quarter after quarter, with RevPAR for the full-year 2022 surpassing that of 2019 by 3 percent.

  • In France, RevPAR was up 13 percent in Q4 2022 compared to Q42019 The efficiency was driven primarily by Paris, which gained from the return of global leisure visitors.
  • In Spain, RevPAR was up 5 percent in Q4 2022 versus Q4 2019.

North Europe published a 5 percent boost in RevPAR in Q4 2022 versus Q4 2019, marked by a small downturn compared to Q3 2022, especially owing to Germany. Northern Europe RevPAR for the full-year 2022 was 6 percent lower than in 2019.

  • In Germany, the consecutive reduction in organization activity was shown by the seasonality of trade fairs and conventions, with less occasions along with lower participation in Q4.
  • In the United Kingdom, RevPAR stayed strong and increased from the previous quarter. London and the province attained equivalent efficiencies in spite of transport-impacting strikes over the duration.

Asia-Pacific taken advantage of a consecutive enhancement in RevPAR (up 3 portion points in between the 3rd and 4th quarters), to stand down 6 percent in Q4 2022 compared to Q42019 Asia-Pacific RevPAR for full-year 2022 is 18 percent lower than in 2019, providing the biggest healing capacity in full-year 2023 due to the activity lag.

  • In the Pacific area, service activity was more powerful than prior to the crisis, with a 13 percent boost in RevPAR in Q4 2022 versus Q4 2019, still mostly driven by rates.
  • In China, RevPAR reduced compared to Q3, being up to 39 percent in Q4 2022 compared to Q4 2019 owing to the rigorous application of a zero-COVID policy up until December2022 Company has actually given that enhanced in spite of the hygienic circumstance still challenging.
  • Southeast Asia published a significant enhancement in Q4 2022 (up 17 portion points from last quarter), with RevPAR at 4 percent lower than in Q42019 The healing was underpinned especially by Singapore, leisure visitors in Thailand, and the resuming of Japan in October.

In the India, Middle East, Africa, and Turkey (IMEAT) area, service benefited substantially from the Soccer World Cup in Qatar in November and December, with RevPAR 73 percent greater in Q4 2022 than in Q42019 The World Cup had a ripple effect throughout the Arabian Peninsula. Saudi Arabia likewise gained from a strong activity connected to trips. Regional RevPAR for the full-year 2022 was 47 percent greater than in 2019.

In the Americas, the enhancement in RevPAR was likewise notable (up 6 portion points in between the 3rd and 4th quarters), increasing 18 percent in Q4 2022 compared to Q42019 RevPAR for the Americas area in full-year 2022 was 5 percent greater than in 2019.

  • North/Central America and Caribbean area RevPAR was 8 percent greater in Q4 2022 than in Q4 2019, still highly sustained by rates.
  • In South America, company likewise stayed robust with Q4 2022 RevPAR surpassing that of Q4 2019 by 42 percent, the continual increase in rates having actually been driven by inflation over the last 3 years.

The income from Services to Owners earnings concerned EUR2,143 million in2022 It consists of the Sales, Marketing, Distribution, and Loyalty department, along with shared services and the repayment of hotel personnel expenses. In 2022, the compensation expenses likewise consisted of the re-invoicing of the expenses sustained by Accor associated to the services concerning fans lodging supplied throughout the Soccer World Cup in Qatar.

hotel Assets & & Other Revenue

Revenue in the hotel Assets & & Other sector was up 63 percent like-for-like versus 2021 and up 2 percent like-for-like versus 2019, reaching EUR1,084 million. This sector, which is carefully connected to organization in Australia, significantly gained from a healing in leisure tourist need on the northeastern coast of the nation where the majority of the group’s Strata activities lie (i.e. space and home circulation activities and handled homes).

Since early 2021, this section consists of concierge services, high-end house leasings, personal sales of hotel stays, and digital services for hotel owners. All these activities took advantage of the uptrend in tourist.

At year-end 2022, this sector, that includes owned and rented hotels, represented 114 hotels and 22,436 spaces.

Positive EBITDA

Consolidated EBITDA stood at EUR675 million in 2022, compared to EUR22 million in2021 The figure went beyond the target embeded in October 2022, significantly owing to robust service activity in December.

The EBITDA margin concerned 16 percent in full-year 2022 versus 1 percent in 2021.

HotelServices EBITDA by Business

HotelServices EBITDA was favorable at EUR661 million for2022 The figure breaks down as favorable EBITDA for Management & & Franchise( M&F) and an unfavorable contribution from Services to Owners associated with marketing expense ahead of the rebound in company activity in first-half2022 Solutions to Owners EBITDA came out at a favorable EUR14 million in the 2nd half of the year. Rebilling of expenses (with earnings at EUR1,273 million) stayed structurally at breakeven at the EBITDA level.

Management & & Franchise EBITDA by Region

The Management & & Franchise department of HotelServices reported EBITDA of EUR737 million, greater than in 2021 (EUR275 million) and down 5 percent like-for-like compared to 2019.

hotel Assets & & Other EBITDA

hotel Assets & & Other EBITDA concerned EUR137 million in 2022 versus EUR48 million in2021 It was generally driven by Asia-Pacific where service has actually recuperated highly because completion of2021 New organizations, which have actually gained from the momentum of the tourist healing, reported favorable EBITDA in full-year 2022.

Net revenue

Net earnings, group share was EUR402 million in 2022, compared to EUR85 million in 2021.

  • The share of net earnings of equity-accounted financial investments was favorable at EUR33 million for 2022, compared to EUR(273) million in 2021, showing the considerable enhancement in AccorInvest company in its primary market, Europe.
  • Other earnings and expenditures reached EUR63 million, significantly consisting of the net disability turnarounds, the restructuring costs, and the capital gain on the disposal of ResDiary, focused on establishing systems for booking tables and enhancing table management for dining establishments.

In 2021, this line generally consisted of a EUR649 million gain following the partial sale of a 1.5 percent stake in H World Group Ltd (Huazhu) in February 2021.

Profit from stopped operations primarily showed a partial turnaround of arrangements for dangers connected to assurances provided as part of the AccorInvest disposal program in 2021.

Return of Recurring Free Cash Flow

Group repeating complimentary capital went back to favorable area in 2022 at EUR373 million compared to money burn of EUR246 million in 2021.

The expense of net monetary debt reduced from full-year 2021 to full-year 2022 following the redemption of 2 high-coupon bonds.

Recurring expense, that includes “crucial cash” paid by HotelServices for its advancement in addition to digital and IT financial investments, reached EUR159 million in 2022, at the lower end of the at first shown variety of EUR150-200 million. Repeating financial investments in 2023 are anticipated to be greater than EUR200 million.

Change in working capital requirements stayed near breakeven. As in 2021, payment of charges remained in line with organization levels throughout 2022 in addition to the collection of specific charges for which payment due date extensions were given to specific hotel owners.

Group net monetary debt since December 31, 2022, stood at EUR1,658 million, versus EUR1,844 million since December 31,2021 This dec line resulted mostly from:

  • The money generation from business healing pointed out above,
  • The sale of a 10.8 percent stake in Ennismore for EUR185 million, revealed on June 21, 2022,
  • The partial sale of shares in H World Group Ltd (Huazhu) prior to completion of the year for EUR154 million,
  • And these 3 products balance out the boost in financial obligation developing from the complete combination of Paris Society following the take-over of the business in November 2022.

Since December 31, 2022, the typical expense of Accor financial obligation pertained to 2.1 percent with a typical maturity of 3.6 years, without any significant maturities prior to 2026.

In end-December 2022, integrated with the undrawn credit center of EUR1.2 billion, Accor had a liquidity position of EUR2.8 billion.


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