By Mateusz Rabiega and Dimitri Rhodes
(Reuters) -Accor, Europe’s biggest hotel group by portfolio, reported a larger-than-expected rise in first-quarter revenue on Thursday, citing sustained global demand in the hospitality sector supported by its geographical diversification.
The operator of brands, including Ibis and Novotel said revenue in the three months to March 31 reached 1.35 billion euros ($1.53 billion), up from 1.24 billion euros a year earlier and above the 1.31 billion euros forecast by analysts polled by the company.
“Our diversified geographic positioning and leadership in the most promising markets… enable us to continue to grow in a more volatile geopolitical and economic environment,” Accor Chairman and CEO Sebastien Bazin said in a statement.
Revenue in the luxury division, Accor’s fastest-growing, rose 17.9% year-on-year in the first quarter, outperforming the hotel operator’s Premium, Midscale & Economy segment.
Accor develops its high-end Luxury & Lifestyle segment in a bid to offset the effects of increased competition between its core mid-priced activity and alternative accommodation providers, such as Airbnb.
Accor, which opened 45 hotels in the quarter, also confirmed its mid-term forecast, which includes RevPAR annual growth of 3% to 4%.
“In April, demand is strong, and it will be better than what we observed in March,” finance chief Martine Gerow said in a call with journalists.
“For May, demand also remains strong and in line with our expectations, but we have less visibility for June.”
Accor’s revenue per available room (RevPAR), one of the industry’s main performance indicators, rose 5% to 69 euros in the quarter, driven mainly by prices and supported by occupancy rates, the group said.
When asked about a slowdown in U.S. tourism, the finance chief said the country only represents 5% of the group’s reservations.
International hotel operators like Accor rival IHG are keeping a keen eye on potential headwinds unravelling from the flurry of policies introduced by the new U.S. administration.
“We notice that Canadians are travelling a bit less to the United States, which benefits hotels in Canada,” Gerow said.
($1 = 0.8799 euros)
(Reporting by Mateusz Rabiega and Dimitri Rhodes; Editing by Kirsten Donovan and Gareth Jones and Aurora Ellis)
