Accor shares rise on strong Q1 revenue, beats analysts’ predictions

Published 25/04/2025, 10:56
Accor shares rise on strong Q1 revenue, beats analysts’ predictions

Investing.com -- Shares in hotel company Accor (EPA:ACCP) AC experienced a rise, following the announcement of an increased first quarter revenue that surpassed analysts’ expectations.

The shares were 4.5% higher at 42.50 euros in European morning trading.

The French group reported sales of 1.35 billion euros ($1.54 billion), marking a 9.2% increase from the previous year. This result surpassed analysts’ predictions of 1.32 billion euros, as per Visible Alpha data. Additionally, the company noted a 5% year-on-year increase in revenue per available room.

Accor’s Chief Executive, Sebastien Bazin, highlighted that the group’s diversified geographic footprint and strong brand presence helped it thrive in a fluctuating geopolitical and economic environment. "The global demand in the hospitality sector remained sustained during the first quarter of 2025," the company stated on late Thursday.

In the first quarter, Accor opened 45 new hotels, adding more than 5,900 rooms to its portfolio. This represents a net unit growth of 2.7% over the last 12 months, a pace the company expects to pick up starting from the second half of the year.

Accor also confirmed its medium-term targets, initially disclosed in 2023. The company continues to anticipate a 9%-12% increase in recurring earnings before interest, taxes, depreciation and amortization. It also projects a 3%-4% annual growth in revenue per available room and an average network expansion of 3% to 5% each year.

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