Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said:
“The trends observed in the first quarter in the vast majority of regions reflect a favorable environment for the hotel industry. This is particularly the case in our three main markets, France, Europe and the Asia-Pacific region. The new businesses also performed well, thanks in part to the support of AccorHotels.
At the same time, the Group further entrenched its growth, its move into new businesses and its leadership in the luxury segment through numerous value creating acquisitions, namely Rixos and BHG in hotels, and Availpro, Potel & Chabot and VeryChic in new businesses. Lastly, the process of transforming AccorInvest into a subsidiary is underway; AccorHotels is therefore perfectly in line with our 2017 objectives.”
Consolidated first-quarter 2017 revenue totaled €425 million, up 35.4% as reported and 7.4% on a like-for-like basis.
Changes in the scope of consolidation (acquisitions and disposals) made a positive contribution of €82 million (+26%), thanks in particular to the contributions of Raffles, Fairmont, Swissotel, onefinestay and John Paul.
Currency effects had a positive impact of €6 million, attributable primarily to the Brazilian real (+€8.2 million) and the Australian dollar (+€4.3 million).
During the first quarter, AccorHotels’ development represented 35 hotels and more than 7,000 rooms. As of March 31, 2017, the Group’s pipeline amounted to 951 hotels and 176,000 rooms.
On July 12, 2016, AccorHotels announced its intention to turn HotelInvest into a subsidiary and dispose of a majority of it, united under AccorInvest, in the summer of 2017. In accordance with IFRS 5, the assets held for sale have been placed in a separate item on the balance sheet and in the income and cash flow statements. The 2017 data presented in this press release reflect this accounting treatment.
Accordingly, the Group is now structured around the following business lines:
HotelServices is now organized into six operating regions:
SOLID GROWTH IN REVENUE
With strong growth for HotelServices (+5.6%) and the new businesses (concierge services, luxury home rentals and digital services for independent hotel operators, +10.4%), the Group recorded revenue growth of 7.4% at constant scope of consolidation and exchange rates (LFL) in the first quarter of 2017, despite the loss of one day of business compared with the first quarter of 2016. Revenue derived from the hotel assets held by the Group, mainly in Central Europe and under lease in Brazil, also grew in first-quarter 2017, by 5.8%.
POSITIVE MOMENTUM FOR HOTELSERVICES
HotelServices, which operated 4,158 hotels (586,578 rooms) under franchise agreements and management contracts at the end of March 2017, reported a 34% increase in revenue as reported to €394 million. This growth reflected the combined impact of very strong business levels in the majority of regions, favorable comparison bases, notably in France and Belgium, and, to a lesser extent, the shift of the Easter vacation period to April.
Consolidated RevPAR was up 5%.
In France & Switzerland, revenue was down 0.6% on a like-for-like basis. The decline was attributable in particular to the loss of one business day and to the conversion of around 60 Grape Hospitality hotels into franchised hotels in June 2016. However, RevPAR was up sharply (+5.0%), driven by a 2.7 point increase in the occupancy rate combined with stable prices.
Europe posted strong revenue growth (+8.4% like-for-like), driven by RevPAR growth of 7.4%, all segments combined.
The Middle East & Africa region recorded a 1.9% increase in revenue, with performances varying significantly between Morocco and Dubai, which were very sound, and the more challenging markets, such as the Emirates, Saudi Arabia, Angola and Algeria, which are sensitive to oil prices.
The Asia-Pacific region performed very well, posting 10.6% growth driven by the luxury segment (RevPAR up 6.4%) and persistently fast development.
North America, Central America & the Caribbean remained strong despite the notable decline in arrivals of foreign tourists in the United States' major cities. AccorHotels benefits from the well-balanced spread of Fairmont hotels across the United States and Canada, and a strong presence in US cities less exposed to international customers. As a result, regional RevPAR grew by 3.6%. The 0.1% like-for-like increase in revenue does not include Fairmont; it only takes into account the hotels included in the scope of consolidation in Q1 2016, which are more exposed to markets such as New York and Miami.
Lastly, the situation remains difficult in South America, and more precisely in Brazil. Regional revenue was down 10.6%, with Rio facing a particularly challenging situation (RevPAR down 32% across the city), reflecting the overcapacity generated by the Olympic Games and a depressed socioeconomic environment.
The Group’s development continues at a rapid pace. During the first quarter, AccorHotels opened 35 hotels, representing more than 7,000 rooms. At the end of March 2017, the Group’s pipeline comprised 951 hotels and 176,000 rooms, of which 82% in emerging markets and 45% in the Asia-Pacific region.
SUSTAINED GROWTH IN NEW BUSINESSES
In the three months to end-March 2017, revenue from the new businesses (concierge services, luxury home rentals and digital services for independent hotels) amounted to €13 million, compared with €5 million in first-quarter 2016, thanks to the consolidation of John Paul and onefinestay.
DIGITAL SERVICES FOR INDEPENDENT HOTELS
Fastbooking, whose business consists of offering independent hotel operators digital solutions to help boost their direct sales, posted organic growth of 10.4% on a like-for-like basis. In this segment, the acquisition of Availpro, announced on April 5, will round out the suite of products and services offered to hotel operators and create the European leader in digital services for independent hotels.
LUXURY HOME RENTALS
The luxury home rentals business, which included onefinestay in first-quarter 2017, delivered revenue of €2 million, with good performances in London and Paris, and a more mixed situation in the United States.
During the quarter, onefinestay added four new destinations: the Hamptons and Southern California in the United States, the French Riviera, and Edinburgh in Scotland. Four additional destinations are set to open in 2017. In addition, the acquisition of TravelKeys, which fits seamlessly with onefinestay’s offer in the luxury segment, is expected to be finalized by the end of April. The deal will give AccorHotels worldwide leadership in this segment, with more than 10,000 addresses worldwide.
In a booming market, John Paul posted quarterly revenue of €6 million. Its integration into the Group is continuing at a fast pace; it has taken charge of Customer Care, and is managing the AccorLocal project, currently being tested in Paris.
HOTEL ASSETS: STRONG PERFORMANCE IN CENTRAL EUROPE OFFSETTING THAT OF BRAZIL
With the situation still tough in Brazil, and especially in Rio, Orbis bridged the gap by delivering a very strong performance in Central Europe. Overall, the Hotel Assets business generated revenue of €129 million, up 5.8% on a like-for-like basis.
AccorHotels is a world-leading travel & lifestyle group and digital innovator offering unique experiences in more than 4,100 hotels, resorts and residences, as well as in over 3,000 of the finest private homes around the globe. Benefiting from dual expertise as an investor and operator through its HotelServices and HotelInvest divisions, AccorHotels operates in 95 countries. Its portfolio comprises internationally acclaimed luxury brands including Raffles, Fairmont, Sofitel Legend, SO Sofitel, Sofitel, onefinestay, MGallery by Sofitel, Pullman and Swissôtel; the popular midscale and boutique brands of 25hours, Novotel, Mercure, Mama Shelter and Adagio; the much-prized economy brands including JO&JOE, ibis, ibis Styles, ibis budget and the regional brands Grand Mercure, The Sebel and hotelF1. AccorHotels provides innovative end-to-end services across the entire traveler experience, notably through the recent acquisition of John Paul, the world leader in concierge services.
With an unmatched collection of brands and rich history spanning close to five decades, AccorHotels, along with its global team of more than 240,000 dedicated women and men, has a purposeful and heartfelt mission: to make every guest Feel Welcome. Guests enjoy access to one of the world's most rewarding hotel loyalty programs – Le Club AccorHotels.
AccorHotels is active in its local communities and committed to sustainable development and solidarity through PLANET 21, a comprehensive program that brings together employees, guests and partners to drive sustainable growth.
Accor SA shares are listed on the Euronext Paris stock exchange (ISIN: FR0000120404) and traded in the United States on the OTC market (Code: ACRFY)
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