Accor S.A.

Accor reported Q1 group revenue growth of 9.2% and management and franchise revenue growth of 9.3%. Group RevPAR increased 5% like-for-like, with occupancy up 1 point to 61%; pricing contributed about 80% of RevPAR growth. By segment, Premium, Midscale & Economy RevPAR rose 3.4%, Luxury & Lifestyle RevPAR rose 8.3%, MEA/APAC RevPAR rose 4.6%, the Americas rose 13.1%, and Europe/North Africa rose 0.6%. Management said March was low single-digit, while April and May are running mid-single digits, and it reiterated confidence in full-year 2025 RevPAR staying within the 3% to 4% range from Capital Markets Day. It also said net unit growth should be better than 2024’s 3.5%, with acceleration expected in the second half; no next-quarter revenue or EPS guidance was given.

The CEO did not speak; Martine Gerow, the Group CFO, led the call and framed the quarter as evidence that Accor’s strategy of investing in higher-growth regions and segments is still working. She emphasized that the company is not seeing significant changes in demand trends in key markets and said April and May are tracking better than March. Her tone was cautiously constructive, with repeated references to visibility limits but also confidence in the underlying business and the midterm targets.

Gerow highlighted solid operating momentum and a favorable mix from pricing, with 80% of RevPAR growth coming from rate in Q1. She said the group issued a EUR 600 million senior bond with an 8-year maturity and a 3.5% coupon, and launched the first $200 million tranche of a $40 million share buyback program, with a bit more than 60% of that tranche executed as of the call. She also said cost structure is now more flexible and variable than pre-COVID, helped by last year’s restructuring, and that the company has taken actions to offset the estimated 2% full-year revenue impact from some management contracts moving to franchise in PME. On capital allocation and balance sheet, she pointed to continued portfolio action in India and Mexico as well as the ongoing AccorInvest disposal process, which she still expects to take 12 to 18 months.

Analysts focused on demand durability, especially U.S. travel trends, and management said U.S.-related room revenue is only about 5% of the portfolio for travelers in the U.S. plus international visitors there, and less than 3% for Americans traveling outside the U.S. It said the only notable booking shift was Canada, where some demand is staying domestic or being redirected from the U.S. Questions also centered on net unit growth, with management saying 2025 should be above 2024’s 3.5% but that the Mexico acquisition was not factored into that improvement. On margin protection and development costs, Gerow said Accor has more cost flexibility today and is not hearing major concerns from developers, while also confirming the buyback should see a second tranche in the second half.