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Accor Full-Year 2022 Results Solid and Show Sustainable Rebound in Activity in 2022

Sustainable Revpar Recovery Above Pre-pandemic Level FY 2023 Group RevPar Expected up Between 5% and 9% LFL YOY Return of Dividend Distribution at €1.05 per Share

Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said:

We exceeded our financial and non-financial targets and can look to the future with serenity. Our brands are attractive, our distribution is powerful, our teams are talented and motivated, and our organization has been adapted to capture future growth even more effectively.
These strengths combined with the genuine culture of the Group, placing people and talents in the heart of its model, give meaning to our action. In 2023, our ambition is to keep our growth and reinforce our leadership by continuing to evolve the codes of the hospitality industry and remain the chosen partner of our hotel owners and customers.”

After two years severely impacted by the health crisis, the fiscal-year 2022 posted a solid and sustainable rebound in Group’s activity. The performance of hotels over the second half of the year surpasses pre-crisis levels in almost all our regions. Only Asia, a region impacted by China's strict zero-Covid policy until year end, is still significantly below 2019 activity levels.
Worldwide, our recovery was primarily driven by domestic guests, with levels exceeding those of 2019. Whereas international travelers, even whose number grows sharply, failed to return to the level of 2019. As observed in recent quarters, the recovery was led by a strong increase in prices, fueled by demand and accentuated by inflation.
In 2022, Accor opened 299 hotels, corresponding to 43,000 rooms, accounting in a net organic growth in the network of 3.2% over the 12-month period. At end-December 2022, the Group had a hotel portfolio of 802,269 rooms (5,445 hotels) and a pipeline of 216,000 rooms (1,247 hotels).

Consolidated revenue

In 2022, the Group recorded a revenue of €4,224 million, up 80% like-for-like (LFL) versus FY 2021. This growth breaks down into an improvement of 89% for HotelServices and 63% for Hotel Assets & Other. To provide a RevPAR comparison (presented as the change versus FY 2019 throughout this release), the Group reported an increase of 4% in LFL revenue versus FY 2019.
Changes in the scope of consolidation (acquisitions, disposals and reopenings) contributed positively with €72 million mainly due to the takeover of Paris Society and the reopening of the Pullman Montparnasse.
Currency effects had a positive impact of €189 million, mainly linked to the US dollar

In € millions 2021 2022 Change
(LFL) (1)
vs 2021
(LFL) (1)
vs 2019
HotelServices 1,582 3,194 +102% +89% +5%
Hotel Assets & Other 633 1,084 +71% +63% +2%
Holding & Intercos (11) (54) N/A N/A N/A
Total 2,204 4,224 +92% +80% +4%

(1) Like-for-like: at constant scope of consolidation and exchange rates

HotelServices revenue

HotelServices, which includes fees from Management & Franchise (M&F) and Services to Owners, generated €3,194 million in revenue, up 89% like-for-like versus FY 2021 (up 5% like-for-like versus FY 2019). This increase reflects the solid recovery in business over the year.

Management & Franchise (M&F) revenue stood at €1,052 million, up 93% like-for-like versus FY 2021 (down 1% like-for-like versus FY 2019), with regional performances correlated to health crisis situations in the considered countries.

In some cases, the lower improvement in M&F revenue compared to RevPAR can be explained by the slower recovery in incentive fees based on the hotel operating margin generated from management contracts. This results from a lower business activity in 2022 in contrast with 2019 in Asia-Pacific and Northern Europe regions.

In € millions 2021 2022 Change
(LFL) (1)
vs 2021
(LFL) (1)
vs 2019
South Europe 141 267 +88% (1)%
North Europe 91 233 +133% (18)%
ASPAC 98 157 +52% (26)%
IMEAT 77 195 +151% +57%
Americas 111 199 +63% +6%
Total 518 1,052 +93% (1)%

(1) Like-for-like: at constant scope of consolidation and exchange rates

Consolidated RevPAR reported a global increase of 15% during Q4 2022 compared to the same period in 2019, improving on the excellent performance in the Q3 (+14%). Group RevPAR for full-year 2022 was 2% higher than in 2019.

South Europe, driven by France, reported a 12% increase in RevPAR in Q4 2022 compared with Q4 2019. Business performance increased quarter after quarter, with RevPAR for full-year 2022 exceeding that of 2019 by 3%.

North Europe posted a 5% increase in RevPAR in Q4 2022 versus Q4 2019, marked by a slight slowdown compared to Q3 2022, notably owing to Germany. Northern Europe RevPAR for full-year 2022 was 6% lower than in 2019.

Asia-Pacific benefitted from a sequential improvement in RevPAR (+3 percentage points between the third and fourth quarters), to stand at -6% in Q4 2022 compared with Q4 2019. Asia-Pacific RevPAR for full-year 2022 is 18% lower than in 2019, offering the largest recovery potential in FY 2023 due to the activity lag.

In the India, Middle East Africa, & Turkey (IMEAT) region, business benefited considerably from the Soccer World Cup in Qatar in November and December, with RevPAR 73% higher in Q4 2022 than in Q4 2019. The World Cup had a knock-on effect across the Arabian Peninsula. Saudi Arabia also benefited from a solid activity linked to pilgrimages. Regional RevPAR for full-year 2022 was 47% higher than in 2019.

In the Americas, the improvement in RevPAR was also noteworthy (+6 percentage points between the third and fourth quarters), increasing 18% in Q4 2022 compared with Q4 2019. RevPAR for the Americas region in full-year 2022 was 5% higher than in 2019.

The revenue from Services to Owners revenue came to €2,143 million in 2022. It includes the Sales, Marketing, Distribution and Loyalty division, as well as shared services and the reimbursement of hotel staff costs. In 2022, the reimbursement costs also included the re-invoicing of the costs incurred by Accor related to the services regarding supporters accommodation provided during the Soccer World Cup in Qatar.

Hotel Assets & Other revenue

Revenue in the “Hotel Assets & Other” segment was up 63% like-for-like versus 2021 and up 2% like-for-like versus 2019, reaching €1,084 million. This segment, which is closely linked to business in Australia, notably benefited from a recovery in leisure tourism demand on the northeastern coast of the country where most of the Group’s Strata activities are located (i.e. room and apartment distribution activities and managed properties).

Since early 2021, this segment includes conciergerie services, luxury home rentals, private sales of hotel stays and digital services for hotel owners. All these activities benefited from the uptrend in tourism.

At end-December 2022, this segment, which includes owned and leased hotels, represented 114 hotels and 22,436 rooms.

Positive EBITDA

Consolidated EBITDA stood at €675 million in 2022, compared with €22 million in 2021. The figure exceeded the target set in October 2022, notably owing to robust business activity in December.

2021 2022 Change
(LFL) (1)
vs 2021
(LFL) (1)
vs 2019
HotelServices 93 661 +612% +535% (11)%
Hotel Assets & Other 48 137 +187% +202% (10)%
Holding & Intercos (119) (123) N/A N/A N/A
Total 22 675 N/A N/A (11)%

(1) Like-for-like: at constant scope of consolidation and exchange rates.

The EBITDA margin came to 16% in FY 2022 versus 1% in 2021.

In € millions Hotel
Hotel Assets & Other Holding & Intercos ACCOR
2022 revenue 3,194 1,084 (54) 4,224
2022 EBITDA 661 137 (123) 675
EBITDA margin 21% 13% N/A 16%
2021 revenue 1,582 633 (11) 2,204
2021 EBITDA 93 48 (119) 22
EBITDA margin 6% 8% N/A 1%

HotelServices EBITDA by business

HotelServices EBITDA was positive at €661 million for 2022. The figure breaks down as positive EBITDA for Management & Franchise (M&F) and a negative contribution from Services to Owners related to marketing expenditure ahead of the rebound in business activity in first-half 2022. Services to Owners EBITDA came out at a positive €14 million in the second half of the year. Rebilling of costs (with revenue at €1,273 million) remained structurally at breakeven at the EBITDA level.

Management & Franchise EBITDA by region

In € millions 2021 2022 Change
vs 2021
vs 2019
South Europe 96 204 +112% (4)%
North Europe 47 161 +229% (23)%
ASPAC 51 96 +79% (34)%
IMEAT 41 144 +262% +56%
Americas 40 131 +200% +6%
Total 275 737 +161% (5)%

(1) Like-for-like: at constant scope of consolidation and exchange rates.

The Management & Franchise division of HotelServices reported EBITDA of €737 million, significantly higher than in 2021 (€275 million) and down 5% like-for-like compared with 2019.

Hotel Assets & Other EBITDA

Hotel Assets & Other EBITDA came to €137 million in 2022 versus €48 million in 2021. It was mainly driven by Asia-Pacific where business has recovered strongly since the end of 2021. New Businesses, which have benefitted from the momentum of the tourism recovery, reported positive EBITDA in full-year 2022.

Net profit

In € millions 2021 2022
Revenue 2,204 4,224
EBITDA 22 675
EBITDA margin 1% 16%
EBIT (228) 447
Share of net profit of equity-accounted investments (273) 33
Non-recurring items 554 63
Operating profit 53 543
Net profit/(loss) before profit from discontinued operations 8 359
Profit from discontinued operations 77 43
Net profit, Group share 85 402

Net profit, Group share was €402 million in 2022, compared with €85 million in 2021.

In 2021, this line mainly included a €649 million gain following the partial sale of a 1.5% stake in H World Group Ltd (Huazhu) in February 2021.

Profit from discontinued operations mainly reflected a partial reversal of provisions for risks linked to guarantees issued as part of the AccorInvest disposal program like in 2021.

Return of recurring free cash flow

In € millions 2021 2022
EBITDA 22 675
Cost of net debt (83) (75)
Income tax paid (36) (65)
Payment of lease liabilities (88) (73)
Non-cash revenue and expenses included in EBITDA and other 49 49
Funds from operations excluding non-recurring items (137) 511
Recurring investments (122) (159)
Change in working capital and contract assets/liabilities 13 20
Recurring free cash flow (246) 373
Net debt 1,844 1,658

Group recurring free cash flow returned to positive territory in 2022 at €373 million compared with cash burn of €246 million in 2021.

The cost of net financial debt decreased from FY 2021 to FY 2022 following the redemption of two high coupons bonds.

Recurring expenditure, which includes “key money” paid by HotelServices for its development as well as digital and IT investments, reached €159 million in 2022, at the lower end of the initially indicated range of €150-200 million. Recurring investments in 2023 are expected to be higher than €200 million.

Change in working capital requirements remained close to breakeven. As in 2021, payment of fees was in line with business levels during 2022 as well as the collection of certain fees for which payment deadline extensions were granted to certain hotel owners.

Group net financial debt as at December 31, 2022 stood at €1,658 million, versus €1,844 million as at December 31, 2021.
This decrease resulted primarily from:

As at December 31, 2022, the average cost of Accor debt came to 2.1% with an average maturity of 3.6 years, with no major maturities before 2026.

At end-December 2022, combined with the undrawn credit facility of €1.2 billion, Accor had a liquidity position of €2.8 billion.

The Group confirms its commitment to restore its “Investment Grade” rating.

FY23 RevPAR Guidance

FY 2023 Group RevPAR is expected to increase between 5% and 9% on a like-for-like basis compared to FY 2022.


Based on the 2022 results, the dividend distribution policy implemented since 2019 (established on the basis of a payout rate of 50% of the recurring free cash flow), and as recommended by the Board of Directors, Accor will submit to the approval of the Annual Shareholders' Meeting on May 17, 2023 the payment of an ordinary dividend of €0.71 per share.

In addition, based on recent disposals (i.e. a 10.8% stake in Ennismore and H World Group Ltd shares), the Board of Directors has decided to propose the payment of an exceptional dividend of €0.34 per share.

The combination of ordinary and exceptional dividends would result in a payment of €1.05 per share, in line with the last dividend paid out in 2019.

Posted by on February 23, 2023.

Categories: Financial

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