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Investing.com -- Accor (EPA:ACCP) saw its shares slide around 10% Thursday after the French hotel group’s stronger-than-expected earnings were offset by a revenue miss and a large foreign exchange (FX) headwind.
The company posted a 9.4% increase in EBITDA to €552 million, surpassing the company-compiled consensus of €544 million, supported by higher pricing and the breadth of its global footprint.
Net profit for the period came in at €233 million, slightly below analysts’ forecast of €246 million.
However, revenue per available room (RevPAR), a key industry metric, rose 4.1% in the second quarter, missing expectations of 4.7%. The company, which operates brands including Ibis and Novotel, said performance varied across regions but was helped by its presence in more than 110 countries.
"We remain confident in our ability to achieve our medium-term growth targets in a complex environment, the momentum remains positive, despite the negative impact of exchange rate fluctuations – in particular the appreciation of the euro against the dollar," CFO Martine Gerow said.
Group revenue for the first half fell to €233 million from €253 million a year earlier.
Accor maintained its full-year 2025 guidance, including RevPAR growth of 3% to 4%.
The company expects EBITDA growth for the year to be between 9% and 10%. This outlook includes a €60 million foreign exchange headwind, which, according to Jefferies, implies full-year EBITDA between €1.161 billion and €1.172 billion, slightly below the €1.208 billion analyst consensus.
Net unit growth (NUG) guidance was kept at 3.5% growth, slightly below the 3.7% consensus estimate.
Jefferies analysts called Accor’s report "a mixed bag."
"We expect shares to react negatively first thing to the larger-than-expected FX headwind and NUG guidance slightly weaker than expected. The equity story from here hinges on execution. H1 has proven to be on track with 1) geographic diversification driving and derisking growth, 2) FY25E cFX guidance is within the MT guidance range."