Accor says positive travel trends to drive 4-5% room revenue growth in 2024

By Mateusz Rabiega and Charlotte Eugenie Yvette Bawol

(Reuters) -Europe's biggest hotel group Accor said on Thursday it expects its revenue per available room (RevPAR) to grow faster than its medium-term target this year, driven by strong performance across its regions and brands.

Global hotel chains stand to profit from positive global travel trends despite the economic uncertainty, an Oxford Economics study cited by the company showed.

The operator of brands such as Ibis and Novotel expects its RevPAR, a key industry gauge of performance for the hotel industry, to grow by 4-5% this year.

It had previously forecast annual average RevPAR growth of 3-4% until 2027, without providing a separate outlook for 2024.

"We expect ... very good momentum in the Middle East, Southeast Asia," finance chief Martine Gerow said in a press call, adding that Europe and North Africa should have a good third quarter thanks to the Paris Olympics.

Strong momentum in Accor's Luxury & Lifestyle business should also continue, she said.

Accor's half-year RevPAR grew by 6%, partly driven by international events such as the Euro 2024 soccer tournament in Germany and the Hajj pilgrimage in Saudi Arabia.

The Middle East region is expected to see the highest rise in the number of visitors this year, with 31% growth from pre-pandemic levels, based on the Oxford study Accor referred to during its conference call.

"Given the geographical diversification of our portfolio, and in particular in the fastest-growing regions, Accor will benefit from this expected growth," Gerow said.

The French group said it expects 2024 core profit to grow 9-12% from last year, after its first-half EBITDA rose 13% to a record high of 504 million euros.

($1 = 0.9223 euros)

(Reporting by Mateusz Rabiega and Charlotte Yvette Bawol in Gdansk; Editing by Milla Nissi and Himani Sarkar)