Sustainable Revpar Restoration Above Pre-pandemic Degree FY 2023 Group RevPar Anticipated up Between 5% and 9% LFL YOY Return of Dividend Distribution at 1.05 per Share
Sébastien Bazin, Chairman and Chief Govt Officer of Accor, stated:
We exceeded our monetary and non-financial targets and may look to the long run with serenity. Our manufacturers are enticing, our distribution is highly effective, our groups are gifted and motivated, and our group has been tailored to seize future development much more successfully.
These strengths mixed with the real tradition of the Group, inserting individuals and skills within the coronary heart of its mannequin, give which means to our motion. In 2023, our ambition is to maintain our development and reinforce our management by persevering with to evolve the codes of the hospitality trade and stay the chosen accomplice of our lodge house owners and prospects.”
After two years severely impacted by the well being disaster, the fiscal-year 2022 posted a stable and sustainable rebound in Group’s exercise. The efficiency of accommodations over the second half of the 12 months surpasses pre-crisis ranges in nearly all our areas. Solely Asia, a area impacted by China’s strict zero-Covid coverage till 12 months finish, continues to be considerably under 2019 exercise ranges.
Worldwide, our restoration was primarily pushed by home company, with ranges exceeding these of 2019. Whereas worldwide vacationers, even whose quantity grows sharply, didn’t return to the extent of 2019. As noticed in current quarters, the restoration was led by a powerful enhance in costs, fueled by demand and accentuated by inflation.
In 2022, Accor opened 299 accommodations, equivalent to 43,000 rooms, accounting in a web natural development within the community of three.2% over the 12-month interval. At end-December 2022, the Group had a lodge portfolio of 802,269 rooms (5,445 accommodations) and a pipeline of 216,000 rooms (1,247 accommodations).
Consolidated income
In 2022, the Group recorded a income of €4,224 million, up 80% like-for-like (LFL) versus FY 2021. This development breaks down into an enchancment of 89% for HotelServices and 63% for Resort Belongings & Different. To supply a RevPAR comparability (offered because the change versus FY 2019 all through this launch), the Group reported a rise of 4% in LFL income versus FY 2019.
Adjustments within the scope of consolidation (acquisitions, disposals and reopenings) contributed positively with €72 million primarily because of the takeover of Paris Society and the reopening of the Pullman Montparnasse.
Foreign money results had a constructive influence of €189 million, primarily linked to the US greenback
((11)%).
| In € tens of millions | 2021 | 2022 | Change
(reported) |
Change
(LFL) (1) vs 2021 |
Change
(LFL) (1) vs 2019 |
| HotelServices | 1,582 | 3,194 | +102% | +89% | +5% |
| Resort Belongings & Different | 633 | 1,084 | +71% | +63% | +2% |
| Holding & Intercos | (11) | (54) | N/A | N/A | N/A |
| Whole | 2,204 | 4,224 | +92% | +80% | +4% |
(1) Like-for-like: at fixed scope of consolidation and alternate charges
HotelServices income
HotelServices, which incorporates charges from Administration & Franchise (M&F) and Providers to House owners, generated €3,194 million in income, up 89% like-for-like versus FY 2021 (up 5% like-for-like versus FY 2019). This enhance displays the stable restoration in enterprise over the 12 months.
Administration & Franchise (M&F) income 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 well being disaster conditions within the thought of nations.
In some circumstances, the decrease enchancment in M&F income in comparison with RevPAR may be defined by the slower restoration in incentive charges primarily based on the lodge working margin generated from administration contracts. This outcomes from a decrease enterprise exercise in 2022 in distinction with 2019 in Asia-Pacific and Northern Europe areas.
| In € tens of millions | 2021 | 2022 | Change
(LFL) (1) vs 2021 |
Change
(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% |
| Whole | 518 | 1,052 | +93% | (1)% |
(1) Like-for-like: at fixed scope of consolidation and alternate charges
Consolidated RevPAR reported a worldwide enhance of 15% throughout This autumn 2022 in comparison with the identical interval in 2019, enhancing on the superb efficiency within the Q3 (+14%). Group RevPAR for full-year 2022 was 2% larger than in 2019.
South Europe, pushed by France, reported a 12% enhance in RevPAR in This autumn 2022 in contrast with This autumn 2019. Enterprise efficiency elevated quarter after quarter, with RevPAR for full-year 2022 exceeding that of 2019 by 3%.
- In France, RevPAR was up 13% in This autumn 2022 in contrast with This autumn 2019. The efficiency was pushed primarily by Paris, which benefited from the return of worldwide leisure company.
- In Spain, RevPAR was up 5% in This autumn 2022 versus This autumn 2019.
North Europe posted a 5% enhance in RevPAR in This autumn 2022 versus This autumn 2019, marked by a slight slowdown in comparison with Q3 2022, notably owing to Germany. Northern Europe RevPAR for full-year 2022 was 6% decrease than in 2019.
- In Germany, the sequential lower in enterprise exercise mirrored by the seasonality of commerce gala’s and conventions, with fewer occasions in addition to a decrease attendance within the This autumn.
- In the UK, RevPAR remained stable and elevated from the earlier quarter. London and the province achieved comparable performances regardless of transport-impacting strikes over the interval.
Asia-Pacific benefitted from a sequential enchancment in RevPAR (+3 proportion factors between the third and fourth quarters), to face at -6% in This autumn 2022 in contrast with This autumn 2019. Asia-Pacific RevPAR for full-year 2022 is eighteen% decrease than in 2019, providing the biggest restoration potential in FY 2023 because of the exercise lag.
- Within the Pacific area, enterprise exercise was stronger than earlier than the disaster, with a 13% enhance in RevPAR in This autumn 2022 versus This autumn 2019, nonetheless largely pushed by costs.
- In China, RevPAR decreased in comparison with Q3, falling at 39% in This autumn 2022 in contrast with This autumn 2019 owing to the strict utility of a zero-Covid coverage till December 2022. Enterprise has since improved regardless of the sanitary scenario nonetheless difficult.
- Southeast Asia posted a considerable enchancment in This autumn 2022 (up 17 proportion factors from final quarter), with RevPAR at 4% decrease than in This autumn 2019. The restoration was underpinned notably by Singapore, leisure company in Thailand, and the reopening of Japan in October.
Within the India, Center East Africa, & Turkey (IMEAT) area, enterprise benefited significantly from the Soccer World Cup in Qatar in November and December, with RevPAR 73% larger in This autumn 2022 than in This autumn 2019. The World Cup had a knock-on impact throughout the Arabian Peninsula. Saudi Arabia additionally benefited from a stable exercise linked to pilgrimages. Regional RevPAR for full-year 2022 was 47% larger than in 2019.
Within the Americas, the development in RevPAR was additionally noteworthy (+6 proportion factors between the third and fourth quarters), growing 18% in This autumn 2022 in contrast with This autumn 2019. RevPAR for the Americas area in full-year 2022 was 5% larger than in 2019.
- North/Central America and Caribbean area RevPAR was 8% larger in This autumn 2022 than in This autumn 2019, nonetheless strongly fueled by costs.
- In South America, enterprise additionally remained strong with This autumn 2022 RevPAR exceeding that of This autumn 2019 by 42%, the sustained rise in costs having has been pushed by inflation during the last three years.
The income from Providers to House owners income got here to €2,143 million in 2022. It consists of the Gross sales, Advertising, Distribution and Loyalty division, in addition to shared companies and the reimbursement of lodge workers prices. In 2022, the reimbursement prices additionally included the re-invoicing of the prices incurred by Accor associated to the companies concerning supporters lodging supplied throughout the Soccer World Cup in Qatar.
Resort Belongings & Different income
Income within the “Resort Belongings & Different” section was up 63% like-for-like versus 2021 and up 2% like-for-like versus 2019, reaching €1,084 million. This section, which is carefully linked to enterprise in Australia, notably benefited from a restoration in leisure tourism demand on the northeastern coast of the nation the place a lot of the Group’s Strata actions are situated (i.e. room and condominium distribution actions and managed properties).
Since early 2021, this section consists of conciergerie companies, luxurious house leases, personal gross sales of lodge stays and digital companies for lodge house owners. All these actions benefited from the uptrend in tourism.
At end-December 2022, this section, which incorporates owned and leased accommodations, represented 114 accommodations and 22,436 rooms.
Constructive EBITDA
Consolidated EBITDA stood at €675 million in 2022, in contrast with €22 million in 2021. The determine exceeded the goal set in October 2022, notably owing to strong enterprise exercise in December.
| 2021 | 2022 | Change
(reported) |
Change
(LFL) (1) vs 2021 |
Change
(LFL) (1) vs 2019 |
|
| HotelServices | 93 | 661 | +612% | +535% | (11)% |
| Resort Belongings & Different | 48 | 137 | +187% | +202% | (10)% |
| Holding & Intercos | (119) | (123) | N/A | N/A | N/A |
| Whole | 22 | 675 | N/A | N/A | (11)% |
(1) Like-for-like: at fixed scope of consolidation and alternate charges.
The EBITDA margin got here to 16% in FY 2022 versus 1% in 2021.
| In € tens of millions | Resort
Providers |
Resort Belongings & Different | Holding & Intercos | ACCOR |
| 2022 income | 3,194 | 1,084 | (54) | 4,224 |
| 2022 EBITDA | 661 | 137 | (123) | 675 |
| EBITDA margin | 21% | 13% | N/A | 16% |
| 2021 income | 1,582 | 633 | (11) | 2,204 |
| 2021 EBITDA | 93 | 48 | (119) | 22 |
| EBITDA margin | 6% | 8% | N/A | 1% |
HotelServices EBITDA by enterprise
HotelServices EBITDA was constructive at €661 million for 2022. The determine breaks down as constructive EBITDA for Administration & Franchise (M&F) and a destructive contribution from Providers to House owners associated to advertising expenditure forward of the rebound in enterprise exercise in first-half 2022. Providers to House owners EBITDA got here out at a constructive €14 million within the second half of the 12 months. Rebilling of prices (with income at €1,273 million) remained structurally at breakeven on the EBITDA degree.
Administration & Franchise EBITDA by area
| In € tens of millions | 2021 | 2022 | Change
(LFL)(1) vs 2021 |
Change
(LFL)(1) 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% |
| Whole | 275 | 737 | +161% | (5)% |
(1) Like-for-like: at fixed scope of consolidation and alternate charges.
The Administration & Franchise division of HotelServices reported EBITDA of €737 million, considerably larger than in 2021 (€275 million) and down 5% like-for-like in contrast with 2019.
Resort Belongings & Different EBITDA
Resort Belongings & Different EBITDA got here to €137 million in 2022 versus €48 million in 2021. It was primarily pushed by Asia-Pacific the place enterprise has recovered strongly for the reason that finish of 2021. New Companies, which have benefitted from the momentum of the tourism restoration, reported constructive EBITDA in full-year 2022.
Internet revenue
| In € tens of millions | 2021 | 2022 |
| Income | 2,204 | 4,224 |
| EBITDA | 22 | 675 |
| EBITDA margin | 1% | 16% |
| EBIT | (228) | 447 |
| Share of web revenue of equity-accounted investments | (273) | 33 |
| Non-recurring objects | 554 | 63 |
| Working revenue | 53 | 543 |
| Internet revenue/(loss) earlier than revenue from discontinued operations | 8 | 359 |
| Revenue from discontinued operations | 77 | 43 |
| Internet revenue, Group share | 85 | 402 |
Internet revenue, Group share was €402 million in 2022, in contrast with €85 million in 2021.
- The share of web revenue of equity-accounted investments was constructive at €33 million for 2022, in contrast with €(273) million in 2021, reflecting the substantial enchancment in AccorInvest enterprise in its important market, Europe.
- Different revenue and bills reached €63 million, notably together with the online impairment reversals, the restructuring bills and the capital achieve on the disposal of ResDiary, specialised in developping programs for reserving tables and optimizing desk administration for eating places.
In 2021, this line primarily included a €649 million achieve following the partial sale of a 1.5% stake in H World Group Ltd (Huazhu) in February 2021.
Revenue from discontinued operations primarily mirrored a partial reversal of provisions for dangers linked to ensures issued as a part of the AccorInvest disposal program like in 2021.
Return of recurring free money stream
| In € tens of millions | 2021 | 2022 |
| EBITDA | 22 | 675 |
| Price of web debt | (83) | (75) |
| Revenue tax paid | (36) | (65) |
| Fee of lease liabilities | (88) | (73) |
| Non-cash income and bills included in EBITDA and different | 49 | 49 |
| Funds from operations excluding non-recurring objects | (137) | 511 |
| Recurring investments | (122) | (159) |
| Change in working capital and contract property/liabilities | 13 | 20 |
| Recurring free money stream | (246) | 373 |
| Internet debt | 1,844 | 1,658 |
Group recurring free money stream returned to constructive territory in 2022 at €373 million in contrast with money burn of €246 million in 2021.
The price of web monetary debt decreased from FY 2021 to FY 2022 following the redemption of two excessive coupons bonds.
Recurring expenditure, which incorporates “key cash” paid by HotelServices for its improvement in addition to digital and IT investments, reached €159 million in 2022, on the decrease finish of the initially indicated vary of €150-200 million. Recurring investments in 2023 are anticipated to be larger than €200 million.
Change in working capital necessities remained near breakeven. As in 2021, fee of charges was according to enterprise ranges throughout 2022 in addition to the gathering of sure charges for which fee deadline extensions have been granted to sure lodge house owners.
Group web monetary debt as at December 31, 2022 stood at €1,658 million, versus €1,844 million as at December 31, 2021.
This lower resulted primarily from:
- The money technology from the enterprise restoration talked about above,
- The sale of a ten.8% stake in Ennismore for €185 million, introduced on June 21, 2022,
- The partial sale of shares in H World Group Ltd (Huazhu) earlier than the top of the 12 months for €154 million,
- These three objects offset the rise in debt arising from the complete consolidation of Paris Society following the take-over of the corporate in November 2022.
As at December 31, 2022, the common value of Accor debt got here to 2.1% with a mean maturity of three.6 years, with no main maturities earlier than 2026.
At end-December 2022, mixed with the undrawn credit score facility of €1.2 billion, Accor had a liquidity place of €2.8 billion.
The Group confirms its dedication to revive its “Funding Grade” score.
FY23 RevPAR Steerage
FY 2023 Group RevPAR is anticipated to extend between 5% and 9% on a like-for-like foundation in comparison with FY 2022.
Dividend
Primarily based on the 2022 outcomes, the dividend distribution coverage applied since 2019 (established on the premise of a payout price of fifty% of the recurring free money stream), and as beneficial by the Board of Administrators, Accor will undergo the approval of the Annual Shareholders’ Assembly on Could 17, 2023 the fee of an unusual dividend of €0.71 per share.
As well as, primarily based on current disposals (i.e. a ten.8% stake in Ennismore and H World Group Ltd shares), the Board of Administrators has determined to suggest the fee of an distinctive dividend of €0.34 per share.
The mixture of unusual and distinctive dividends would end in a fee of €1.05 per share, according to the final dividend paid out in 2019.