The first quarter of 2022 has brought good news, with a clear improvement in results and a positive outlook.
“Accor's performance in the first quarter of 2022 confirms the clear upturn in business across all regions and the renewed momentum in tourism, food services and entertainment. These results are notably driven by our market dynamics in Europe, the Middle East and the Americas as well as the strong demand for our Luxury and Lifestyle hotels, and domestic travel. Such underlying trends, combined with borders reopening give us confidence that our performance will continue to improve month after month, with prices already above 2019 level. Our brands are attractive, ideally positioned, and the augmented hospitality ecosystem we have built over the past years is attracting an increasing number of guests and owners. In the coming months, we will continue to focus our efforts on accelerating the development of our network, promoting our brands as well as attracting and retaining more and more customers.” Underlines Sébastien Bazin, Chairman and CEO Accor in the context of the group's results communication.
Europe's number 1 recorded a +85% increase in revenue compared to the first quarter of 2021 and is gradually catching up with "normal" indicators with a -23% loss of revenue compared to the reference year 2019. In detail, the HotelServices business is the biggest contributor with +105% of turnover, the Mangement and Franchise fee business as well as Owner Services generated a turnover of €507 million for the first three months of 2022. Within this segment, the Management and Franchise business generated a turnover of €158 million (+106% vs 2021 and -33% vs 2019).
" In general, the sharper decline in M&F revenue compared with RevPAR (down 25% versus Q1 2019) can be attributed to the larger decrease in incentive fees based on the hotel operating margin generated from management contracts." Clarifies the release.
Detail by region:
The group is optimistic about the general increase in activity thanks to an international context that is becoming more normalized and is making it possible to post higher average prices combined with strong growth in reservations.
Several directors will be proposed at the Accor shareholders' meeting on 20 May.
Hélène Auriol Potier, whose expertise in digital technologies is underlined, Asma Abdulrahman Al-Khulaifi to succeed Aziz Aluthman Fakhroo and Ugo Arzani to succeed Nawaf Bin Jassim Bin Jabor Al-Thani, the latter two as representatives of the Qatar Investment Authority, to take over the seats left vacant by the end of the terms of office of the two previous representatives.
The mandates of Qionger Jiang - founder of the Chinese luxury brand Shang Xia - Isabelle Simon, Nicolas Sarkozy and Sarmad Zok will also be proposed for renewal.
For Ascott Residence Trust, housing and student residences have not been affected by the Covid 19 pandemic. The group's portfolio of these two activities will see its turnover increase by a further +12% compared to the first quarter of 2021. The group thus announces its intention to strengthen its long stay portfolio.
The CapitaLand's subsidiary has announced a growth in Revenue Per Unit of +22% compared to 2021.
For the American Wyndham Hotel & Resorts, RevPAR for the first quarter of 2022 rose by +39% compared to the first quarter of 2021. Its CEO Geoffrey A. Ballotti emphasises the combination of factors that is driving the group's optimism.
“Strong leisure and everyday business travel demand drove RevPAR 4% above 2019 levels domestically and we continued to simplify our operations by exiting our select-service management business and selling one of our two owned assets. Our development pipeline increased 9% to a record 204,000 rooms, including the first 50 deals for our new extended-stay product, and our room openings grew 50% more than last year, putting us solidly on track with our full year net-room growth guidance.”
The company reports net income of $106 million for the first quarter, also driven by the sale of the Wyndham Grand Bonnet Creek Resort.
At investor Covivio, results are also in the green with +51% revenue on hotel assets compared to the same period in 2021 on a like-for-like basis. Another indicator of the upturn in activity shared in the press release is a +160% increase in variable rents for hotel properties located in France.
The four players all share a common view of the recovery and expect good figures for 2022. This trend is confirmed by the European hotel performances deciphered on the basis of MKG_Destination data.