Accor reports improved revpar almost every month since April

Since April 2021, Accor enjoyed a sequential rebound in business, with revenue per available room (revpar) improving month after month, the hospitality group reported in its full-year results.

Despite a blip in this improvement in January following the Omicron variant outbreak, February has already been described as "a turning point".

This improvement in demand meant that average room rates came close to or, in many destinations at the end of 2021, even exceeded pre-Covid-19 levels, and although the effects of the pandemic have not yet fully disappeared, the group said all areas appeared to be well on the way to enjoying more "normative" levels of business.

During 2021, Accor opened 288 hotels (41,000 rooms), resulting in net growth of 3% over the 12-month period. At the end of December 2021, the group had a hotel portfolio of 777,714 rooms (5,298 hotels) and a pipeline of 214,000 rooms (1,218 hotels) and for 2022, Accor expected a net unit growth of 3.5%.

In 2021, the group reported consolidated revenue of €2.2b (£1.8b), up 34% like-for-like versus 2020. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) came to €22m (£18m) in 2021 compared with negative EBITDA of €391m (£326m) in 2020.

In the UK, revpar was down 49% in the 2021 financial year compared with 2019. Regional cities (down 34%) benefited from domestic leisure tourism demand with average prices higher than those seen in 2019, while London, more dependent on international visitors, saw revpar decline by 63%.

Sébastien Bazin, chairman and chief executive of Accor, said: "Despite a disrupted start of the year due to overall health restrictions, 2021 showed significant improvement in our business, as of the spring, with trends picking-up month after month right up to December. Our solid performances were achieved owing to the strength of our brands, our financial discipline and the sterling efforts of our teams who, throughout the year, demonstrated determination, tenacity and generosity.

"Thanks to their mobilisation, we emerge stronger from this crisis and have gained market shares in all our key regions. Moreover, our pipeline continues to flourish, with luxury and upscale segment representing close to 40% of future openings, a 12-point increase in the past four years. As the desire to escape and to resume travelling has never been stronger, we are well underway to make the most of this rebound in all our markets. In 2022, we will continue to unfold our vision of ever-more experience-driven and sustainable tourism, facilitated by digital technologies. Armed with these strengths, we are confident in our capacity to enduringly continue creating value for our partners as well as our shareholders."

On 1 October 2021, Accor became the majority shareholder in the newly created lifestyle hotel group following its merger with Ennismore. Accor owns a 66.67% stake in the group; the remaining 33.33% is held by Sharan Pasricha, the founder of Ennismore.