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French hotel group Accor reported 2025 core earnings of 1.20 billion euros, slightly above market expectations and up from 1.12 billion euros in 2024. Revenue per available room rose 4.2% to 76 euros, reflecting steady travel demand across brands such as Ibis and Novotel. The company is expanding its loyalty programme and pursuing an asset-light strategy focused on franchise growth. Accor has also introduced an AI-powered direct booking tool to reduce distribution costs. Proceeds from the planned sale of its 30.6% stake in Essendi will fund a 450 million euro share buyback in 2026, supporting future growth plans.
French hotel group Accor reported annual core earnings slightly above market expectations, supported by portfolio diversification and growth in its loyalty programme. Advertisement
Europe's largest hotel operator posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 1.20 billion euros for 2025, compared with 1.12 billion euros in 2024. The figure was marginally higher than the 1.19 billion euros forecast by analysts, according to company-compiled estimates.
Revenue per available room (RevPAR), a key industry metric, increased 4.2% to 76 euros during the year, reflecting steady demand across its hotel network. Accor operates brands including Ibis and Novotel.
Chief Executive Sbastien Bazin said the company is integrating artificial intelligence into its digital roadmap to enhance efficiency and support future expansion. In February, Accor launched an AI-powered, ChatGPT-based direct booking tool aimed at reducing dependence on online travel agencies and lowering distribution costs.
Looking ahead, the group plans to focus on expanding its hotel network, strengthening partnerships within its loyalty programme and increasing franchise agreements in mature markets. It also intends to finalise the sale of its 30.6% stake in Essendi, formerly known as AccorInvest.
Accor said proceeds from the Essendi stake sale will be used to fund a previously announced 450 million euro share buyback programme in 2026. The repurchase plan will begin only after the transaction is completed.
Shares in Accor were down 1.2% in early trading in Paris. Analysts said the reduced contribution from Essendi weighed on earnings, while the timing of the buyback programme may influence investor sentiment.
The company continues to position itself for growth through asset-light strategies, loyalty expansion and digital initiatives as it navigates evolving travel demand across global markets.
($1 = 0.8473 euros)
Source: Reuters
5th Jun, 2025
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