After two years impacted by the well being disaster, the fiscal 12 months 2022 posted a stable and sustainable rebound in Accor’s exercise. The efficiency of resorts over the second half of the 12 months surpassed pre-crisis ranges in virtually each Accor area. Solely Asia, a area impacted by China’s zero-COVID coverage till year-end, remains to be beneath 2019 exercise ranges.
Worldwide, Accor’s 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 latest quarters, the restoration was led by a robust enhance in costs, fueled by demand, and accentuated by inflation.
In 2022, Accor opened 299 resorts, akin to 43,000 rooms, accounting for a web natural progress within the community of three.2 p.c over the 12-month interval. At year-end 2022, the group had a lodge portfolio of 802,269 rooms (5,445 resorts) and a pipeline of 216,000 rooms (1,247 resorts).
Sébastien Bazin, chairman and CEO of Accor, mentioned, “Tourism recovered considerably in 2022 and our performances, up strongly in all
areas, mirrored that rebound. We exceeded our monetary and non-financial targets and may look to the longer term 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 progress much more successfully. These strengths mixed with the real tradition of the group, inserting folks and skills within the coronary heart of its mannequin, give which means to our motion. In 2023, our ambition is to maintain our progress and reinforce our management by persevering with to evolve the codes of the hospitality business and stay the chosen companion of our lodge homeowners and clients.”
Consolidated Income
In 2022, the group recorded a income of €4,224 million, up 80 p.c like-for-like versus full-year 2021. This progress breaks down into an enchancment of 89 p.c for HotelServices and 63 p.c for Lodge Property & Different. To offer a RevPAR comparability, the group reported a rise of 4 p.c in like-for-like income versus full-year 2019.
Modifications 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.
Forex results had a optimistic affect of €189 million, primarily linked to the U.S. greenback (11 p.c).
HotelServices Income
HotelServices, which incorporates charges from Administration & Franchise (M&F) and Providers to House owners, generated €3,194 million in income, up 89 p.c like-for-like versus full-service 2021 (up 5 p.c like-for-like versus full-year 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 p.c like-for-like versus full-year 2021 (down 1% p.c like-for-like versus full-year 2019), with regional performances correlated to well being disaster conditions within the thought-about international locations.
In some circumstances, the decrease enchancment in M&F income in comparison with RevPAR may be defined by the slower restoration in incentive charges based mostly 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.
Consolidated RevPAR reported a worldwide enhance of 15 p.c throughout This autumn 2022 in comparison with the identical interval in 2019, bettering on the superb efficiency in Q3 (up 14 p.c). Group RevPAR for the full-year 2022 was 2 p.c increased than in 2019.
South Europe, pushed by France, reported a 12 p.c enhance in RevPAR in This autumn 2022 in contrast with This autumn 2019. Enterprise efficiency elevated quarter after quarter, with RevPAR for the full-year 2022 exceeding that of 2019 by 3 p.c.
- In France, RevPAR was up 13 p.c 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 p.c in This autumn 2022 versus This autumn 2019.
North Europe posted a 5 p.c 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 the full-year 2022 was 6 p.c decrease than in 2019.
- In Germany, the sequential lower in enterprise exercise was mirrored by the seasonality of commerce gala’s and conventions, with fewer occasions in addition to decrease attendance in 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 (up 3 proportion factors between the third and fourth quarters), to face down 6 p.c in This autumn 2022 in contrast with This autumn 2019. Asia-Pacific RevPAR for full-year 2022 is eighteen p.c decrease than in 2019, providing the most important restoration potential in full-year 2023 because of the exercise lag.
- Within the Pacific area, enterprise exercise was stronger than earlier than the disaster, with a 13 p.c 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 to 39 p.c 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 state of affairs nonetheless difficult.
- Southeast Asia posted a considerable enchancment in This autumn 2022 (up 17 proportion factors from final quarter), with RevPAR at 4 p.c 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, and Turkey (IMEAT) area, enterprise benefited significantly from the Soccer World Cup in Qatar in November and December, with RevPAR 73 p.c increased 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 the full-year 2022 was 47 p.c increased than in 2019.
Within the Americas, the advance in RevPAR was additionally noteworthy (up 6 proportion factors between the third and fourth quarters), growing 18 p.c in This autumn 2022 in contrast with This autumn 2019. RevPAR for the Americas area in full-year 2022 was 5 p.c increased than in 2019.
- North/Central America and Caribbean area RevPAR was 8 p.c increased in This autumn 2022 than in This autumn 2019, nonetheless strongly fueled by costs.
- In South America, enterprise additionally remained sturdy with This autumn 2022 RevPAR exceeding that of This autumn 2019 by 42 p.c, the sustained rise in costs having 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 and marketing, Distribution, and Loyalty division, in addition to shared providers 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 providers relating to supporters lodging supplied through the Soccer World Cup in Qatar.
Lodge Property & Different Income
Income within the Lodge Property & Different section was up 63 p.c like-for-like versus 2021 and up 2 p.c 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 many of the group’s Strata actions are positioned (i.e. room and condominium distribution actions and managed properties).
Since early 2021, this section consists of concierge providers, luxurious house leases, personal gross sales of lodge stays, and digital providers for lodge homeowners. All these actions benefited from the uptrend in tourism.
At year-end 2022, this section, which incorporates owned and leased resorts, represented 114 resorts 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 sturdy enterprise exercise in December.
The EBITDA margin got here to 16 p.c in full-year 2022 versus 1 p.c in 2021.
HotelServices EBITDA by Enterprise
HotelServices EBITDA was optimistic at €661 million for 2022. The determine breaks down as optimistic EBITDA for Administration & Franchise (M&F) and a detrimental 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 optimistic €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 stage.
Administration & Franchise EBITDA by Area
The Administration & Franchise division of HotelServices reported EBITDA of €737 million, increased than in 2021 (€275 million) and down 5 p.c like-for-like in contrast with 2019.
Lodge Property & Different EBITDA
Lodge Property & 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 because the finish of 2021. New companies, which have benefitted from the momentum of the tourism restoration, reported optimistic EBITDA in full-year 2022.
Internet revenue
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 optimistic at €33 million for 2022, in contrast with €(273) million in 2021, reflecting the substantial enchancment in AccorInvest enterprise in its essential market, Europe.
- Different revenue and bills reached €63 million, notably together with the web impairment reversals, the restructuring bills, and the capital acquire on the disposal of ResDiary, specialised in growing programs for reserving tables and optimizing desk administration for eating places.
In 2021, this line primarily included a €649 million acquire following the partial sale of a 1.5 p.c 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 in 2021.
Return of Recurring Free Money Stream
Group recurring free money stream returned to optimistic territory in 2022 at €373 million in contrast with money burn of €246 million in 2021.
The price of web monetary debt decreased from full-year 2021 to full-year 2022 following the redemption of two high-coupon bonds.
Recurring expenditure, which incorporates “key cash” paid by HotelServices for its growth 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 increased than €200 million.
Change in working capital necessities remained near breakeven. As in 2021, fee of charges was in keeping with enterprise ranges throughout 2022 in addition to the gathering of sure charges for which fee deadline extensions have been granted to sure lodge homeowners.
Group web monetary debt as of December 31, 2022, stood at €1,658 million, versus €1,844 million as of December 31, 2021. This lower resulted primarily from:
- The money era from the enterprise restoration talked about above,
- The sale of a ten.8 p.c 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,
- And 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 of December 31, 2022, the typical price of Accor debt got here to 2.1 p.c with a mean maturity of three.6 years, with no main maturities earlier than 2026.
In end-December 2022, mixed with the undrawn credit score facility of €1.2 billion, Accor had a liquidity place of €2.8 billion.
