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Accor Charts Growth Path After Beating Profit Expectations

Prime Highlights

  • Accor plans to expand its global network and strengthen its loyalty program to drive future growth.
  • The company will sell its stake in Essendi and use the proceeds for a €450 million share buyback, boosting shareholder value.

Key Facts

  • Accor is investing in technology to increase direct bookings and reduce reliance on third-party platforms.
  • India currently contributes less than 1% of business with around 70 hotels, while Saudi Arabia remains a key high-growth market.

Background:

Accor reported annual core earnings slightly above market expectations in 2025, supported by portfolio diversification and the expansion of its loyalty program, the French hotel group said.

The company posted earnings before interest, taxes, depreciation and amortization (EBITDA) of €1.20 billion ($1.41 billion), compared with €1.12 billion in 2024 and just ahead of the €1.19 billion analyst consensus compiled by the company. Total revenue per available room (RevPAR), a key industry measure, rose 4.2 percent to €76 during the year.

Accor said the Middle East, Africa and Asia-Pacific region recorded a 7.6 percent rise in RevPAR compared with the fourth quarter of 2024. The increase came entirely from higher room rates, while occupancy slipped slightly due to continued weakness in China.

Within the Middle East-Africa market, which represents 26 percent of the region’s room revenue, major destinations such as Saudi Arabia and the UAE delivered double-digit RevPAR growth. In Saudi Arabia, where Accor has operated for more than 30 years, the group manages 44 hotels and plans to add over 45 more properties by 2030.

As of the end of September, Accor’s global portfolio included 5,760 hotels with 859,830 rooms. Its development pipeline stood at more than 1,453 hotels, representing over 250,000 rooms. Over the past five years, the value of its pipeline has grown faster than the number of projects, reflecting a focus on higher-quality assets.

Chief Executive Sebastien Bazin said the rapid integration of artificial intelligence into the company’s digital strategy is helping accelerate development and improve efficiency. In February, Accor introduced an AI-powered, ChatGPT-based direct booking tool aimed at reducing reliance on online travel agencies and lowering distribution costs.

Looking ahead to 2026, finance chief Martine Gerow said the group will prioritize network expansion, strengthen its loyalty partnerships, increase franchise agreements in mature markets and complete the sale of its 30.6 percent stake in Essendi, formerly AccorInvest. Proceeds from the divestment will fund a €450 million share buyback program.

Accor also continues to expand in India, which currently accounts for around 70 hotels and less than 1 percent of total business volume, describing the market as still at an early stage of growth.