Hotel group Accor expects domestic demand to return to 2019 levels by the end of the year

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The logo of French hotel operator AccorHotels is seen above the company’s headquarters in Issy-les-Moulineaux near Paris, France, February 17, 2021. REUTERS/Gonzalo Fuentes/File Photo

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April 28 (Reuters) – Europe’s biggest hotel group Accor (ACCP.PA) said on Thursday it expected domestic demand to return to levels comparable to 2019 by the end of the year after announcing an increase in its revenues in the first quarter.

The global travel and hospitality industry is recovering from the pandemic as higher vaccination rates and easing restrictions spur an increase in business and leisure travel.

“This rebound reflects both the sustained increase in the number of domestic business and leisure guests, and the reopenings of borders which have accelerated the return of international travellers,” the French hotelier said in a statement.

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Accor, which operates 5,300 hotels in 110 countries, said the recovery in international demand was catching up despite a “gloomy” performance in China due to the emergence of the Omicron variant and travel restrictions in some Asian countries. .

Beijing closed some schools and public spaces on Thursday as most of the Chinese capital’s 22 million residents showed up for more mass COVID-19 testing aimed at avoiding a Shanghai-style lockdown. Read more

“Accor’s performance in the first quarter of 2022 confirms the clear recovery of activity in all regions and the renewed dynamism of tourism, catering and leisure,” said Chairman and CEO Sébastien Bazin in a press release.

The French group, which runs high-end chains Sofitel and Pullman, as well as budget brands such as Ibis, posted revenue of 701 million euros ($737.10 million) from January to March , up 85% on a like-for-like basis compared to 361 million euros a year earlier.

The group’s revenue per available room (RevPAR), a key performance indicator for the hospitality industry, more than doubled in the first quarter of 2022 but was still down 25% from pre-COVID levels. Accor said it will continue to improve in future quarters, based on ongoing bookings and price increases.

The Whitbread Hotel Group (WTB.L) said on Thursday that profits from its UK business could return to pre-pandemic levels this year despite inflationary pressures. Read more

Accor also confirmed its forecast of 3.5% net growth in its hotel portfolio for 2022. read more

($1 = 0.9510 euros)

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Reporting by Anait Miridzhanian; edited by David Evans and Jane Merriman

Our standards: The Thomson Reuters Trust Principles.

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