Accor plans to open more than 1,200 hotels in the next five years, increasing the number of its resorts by more than one-fifth, it said on Tuesday, the latest sign the industry is betting on strong travel demand long-term following the pandemic.
Europe’s biggest hotel group also said it plans to return around 3 billion euros ($3.3 billion) to shareholders in the 2023-2027 period via dividends and share buybacks, and raised its 2023 core earnings outlook.
The hospitality industry has benefited from higher prices and a rebound in travel demand in the wake of the pandemic, with consumers rushing to travel even as rising interest rates stoke fears of a recession and inflation erodes household purchasing power.
Accor forecast 2023 revenue per room (RevPAR) to grow by 15 percent to 20 percent amid reorganization plans implemented in January, and expects core earnings before interests, taxes, depreciation and amortization (EBITDA) of 920-960 million euros.
In the first quarter of 2019, Accor estimated the average price of a room at 89 euros per night. After the reorganization, the average price was 106 euros, marking an increase of around 19 percent.
