Accor Group’s business travel demand showed some signs of weakness in the first quarter of 2025, despite overall performance remaining stable in an uncertain global economic environment.
Martine Gerow, the Chief Financial Officer of Accor, stated in a conference call that while demand from groups and leisure travelers remained strong, business travel from individual corporate clients was softer.
Gerow highlighted that, despite challenges, Accor’s overall demand had remained resilient amid ongoing economic uncertainties.
“March was softer than January and February due to calendar shifts, particularly with Easter,” she explained. “However, April and May have shown much stronger trends. So far, we haven’t seen any significant changes in demand in our major markets.”
Accor reported a 5% increase in revenue per available room (RevPAR) to €69 in the first quarter on a like-for-like, constant-currency basis. The company’s average room rate also rose by 4%, reaching €113.
Overall, the company saw a 9.2% year-on-year increase in total revenue, totaling €1.35 billion. Global occupancy rates improved by 0.6 percentage points, reaching 60.9%.
In the Europe and North Africa region, RevPAR increased by just 0.6% to €54 compared to the same period in 2024. The average room rate in the region dipped slightly by 0.1% to €93, while occupancy saw a modest rise of 0.4 percentage points to 58.3%.
Accor’s results in key European markets showed mixed performance. In France, which accounts for 44% of the region’s revenue, RevPAR declined slightly in both Paris and other regions due to a weak performance in March.
The UK also saw a decline in RevPAR year-on-year, both in London and other areas. Accor attributed this decline to weak consumer confidence in the UK’s economic outlook.
In Germany, however, RevPAR showed moderate growth early in the year, with a more pronounced acceleration later in the quarter, helped by a favorable trade fair calendar.
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