Accor Q1 2026 Results: Revenue Rises 8.3% to ₹2,970 Crore

Paris, April 25, 2026: Accor reported group revenue of €1,313 million (approximately Rs 11,800 crore) for the first quarter of 2026, reflecting a 2.3 per cent increase at constant currency, supported by strong growth in its management and franchise business, which rose 8.3 per cent to €332 million (around Rs 3,000 crore).

Management and Franchise Model Drives Revenue Growth

The company’s asset-light strategy remained a key contributor to performance during the quarter. Management and franchise revenue increased to €332 million, driven by both network expansion and higher revenue per available room (RevPAR). Within this, the Premium, Midscale and Economy segment generated €201 million, up 4.3 per cent, while the Luxury & Lifestyle division recorded stronger growth of 15.2 per cent to €131 million.

Sales, Marketing, Distribution and Loyalty (SMDL) revenue also expanded across segments, reaching €216 million in the Premium, Midscale and Economy division, up 4.4 per cent, and €96 million in Luxury & Lifestyle, reflecting a 10.6 per cent increase.

Hotel Assets & Other revenue showed mixed performance. The Premium, Midscale and Economy segment grew 5.2 per cent to €245 million, supported by strong results in Brazil and Australia. However, the Luxury & Lifestyle segment declined 20.0 per cent to €115 million, largely due to the disposal of Paris Society’s “Festive” operations and reduced restaurant activity linked to geopolitical disruptions.

RevPAR Growth Supported by Pricing Across Segments

Operationally, Accor reported a 5.1 per cent increase in group-wide RevPAR compared to the same period last year. The Premium, Midscale and Economy segment recorded a 4.5 per cent increase, primarily driven by higher room rates, while the Luxury & Lifestyle segment outperformed with a 6.0 per cent rise, two-thirds of which was attributed to pricing.

Within the Luxury segment, which contributes 72 per cent of the division’s room revenue, RevPAR grew 6.8 per cent, supported by strong demand across most regions. The Lifestyle segment recorded a 4.2 per cent increase, although resort properties faced pressure due to exposure to the Middle East market.

Regional Performance Varies Amid Global Conditions

Regional performance showed divergence across markets. Europe North Africa recorded a 2.7 per cent increase in RevPAR, driven mainly by occupancy improvements. France continued strong momentum across Paris and regional markets, while the United Kingdom saw ongoing recovery. Germany returned to slightly negative territory, influenced by event-driven demand.

The Middle East, Africa and Asia-Pacific region reported a 5.5 per cent increase in RevPAR, largely driven by pricing. Southeast Asia emerged as the strongest-performing sub-region, with Thailand and Indonesia returning to growth, alongside continued strength in Singapore and Japan. In contrast, the Middle East experienced mixed performance, with the UAE reporting a 9 per cent decline due to regional conflict, while Saudi Arabia and Egypt showed growth.

The Americas region delivered the strongest results, with RevPAR increasing 9.1 per cent, led by Brazil, which accounts for a majority share of the region’s room revenue and continued to post double-digit growth.

Network Expansion and Pipeline Strengthen Growth Outlook

During the quarter, Accor opened 48 hotels, adding more than 6,700 rooms to its global portfolio. This contributed to net unit growth of 3.8 per cent over the past 12 months. As of March 2026, the group operated 5,815 hotels with 879,676 rooms worldwide.

The company’s development pipeline remains robust, with 1,545 hotels and 260,000 rooms under development, reflecting continued expansion across markets and segments.

At a segment level, the Premium, Midscale and Economy division generated €663 million in revenue, up 4.6 per cent at constant currency, while the Luxury & Lifestyle division reported €341 million, down 0.7 per cent due to the impact of disposals.

External Factors Impact Reported Revenue

On a reported basis, Accor’s revenue declined 2.7 per cent from €1,349 million in Q1 2025, primarily due to unfavourable currency movements, which had a negative impact of €66 million. Additional effects of €18 million were linked to changes in business scope, including asset disposals.

The quarter was also affected by geopolitical developments, particularly the conflict in the Middle East, which disrupted performance in certain markets, including the UAE. Despite this, stable demand in other regions helped offset the impact.

Reimbursed costs revenue, representing expenses incurred on behalf of hotel owners, stood at €328 million, reflecting a marginal 0.5 per cent increase year-on-year.

Accor also announced a €450 million share buyback programme for 2026, with an initial tranche of €225 million launched in April. Additionally, the group generated €66 million through the partial sale of its stake in a luxury cruise venture and signed an agreement to divest its 30.56 per cent stake in Essendi, indicating continued portfolio optimisation.

Overall, the company’s first-quarter performance reflects steady operational growth supported by its fee-based business model, despite currency pressures and regional disruptions, with expansion and diversification continuing to underpin its global strategy.