Accor (AC) H1 2024 earnings summary

Executive summary

• Revenue rose 11% year-over-year to €2,677 million in H1 2024, with EBITDA up 13% to €504 million and EPS up 11% to €0.90, exceeding guidance.

• RevPAR increased 6% year-over-year, with Q2 up 4.8%, and net unit growth reached 4.1% LTM, supported by major portfolio expansion in growth geographies.

• Strong performance across all regions and brands, with notable momentum in Luxury & Lifestyle segments and Premium, Midscale & Economy divisions.

• Nearly €700 million returned to shareholders via buybacks and dividends, with a €400 million share buyback completed and EPS up 11%.

• Major partnerships and asset-light strategy developments, including LVMH for Orient Express, Amadeus, IDeas, and the sale of Accor Vacation Club.

Financial highlights

• Group revenue reached €2,677 million, up 11% year-over-year; Premium, Midscale & Economy division up 4%, Luxury & Lifestyle up 22%.

• Management & Franchise revenue up 10% to €673 million, with Luxury & Lifestyle segment M&F revenue up 15%.

• Net profit, Group share, was €253 million, up from €248 million in H1 2023; EBIT increased to €345 million.

• Recurring free cash flow was €120 million, with a cash conversion rate of 24%.

• Net financial debt increased to €2,934 million, mainly due to share buybacks and dividend payments.

Outlook and guidance

• FY 2024 guidance: RevPAR growth of 4–5%, net unit growth of 3–4%, EBITDA of €1,095–1,125 million (+9–12% YoY), and positive Services to Owners contribution.

• Medium-term (2023–2027): annual RevPAR growth of 3–4%, net unit growth of 3–5%, M&F revenue growth of 6–10%, EBITDA growth of 9–12%, free cash flow conversion >55%, and €3 billion shareholder returns.

• Guidance raised for 2024, reflecting confidence in sustained growth and robust pipeline.