Hospitality giant Accor has posted sizeable revenue growth for the first quarter of 2019, with the company’s boss praising its transformation and strategy.
The group’s revenue totalled €987 million ($1.5 billion) for the quarter – up a whopping 34 per cent on the previous corresponding period.
Accor’s hotel assets and other segment experienced the biggest revenue growth with 106 per cent, while its new business segment saw 22 per cent growth and revenue for HotelServices rose by 13.5 per cent.
The group’s revenue per available room (RevPAR) increased by 1.6 per cent in the first quarter, with mixed performances throughout the regions.
Europe was resilient with 3.3 per cent RevPAR growth, while Asia-Pacific was down 0.6 per cent.
Accor said this slight drop in APAC RevPAR was driven by Australia, where oversupply in major cities and the upcoming general elections affected prices and occupancy rates, resulting in a 1.6 per cent decrease in RevPAR locally.
RevPAR was also down in the Middle East and Africa region (-0.7 per cent), while North America, Central America and the Caribbean posted a 2.1 per cent decrease in RevPAR,
Accor has continued to recover steadily in South America, with RevPAR rising by 11.2 per cent, mainly driven by prices.
During the first quarter, Accor opened 71 hotels, representing 8,300 rooms. At the end of March 2019, the group’s pipeline amounted to 1,135 hotels and 200,000 rooms.
Accor is forecasting RevPAR growth of around three per cent for FY19.
Sébastien Bazin (pictured above), chairman and CEO of Accor, said: “In a turbulent macroeconomic environment, the group’s first-quarter revenue performance highlights the effectiveness of our transformation and the soundness of our strategy.
“Europe remained strong, while South America continued its robust recovery. We achieved sustained business development over the period, in line with our medium-term objectives, and continued to strengthen our pipeline, with an ever-increasing share of luxury hotels, which generate higher fees per room.
“Performing well and growing steadily stronger, the group can tackle the rest of the year with confidence.”