Accor reported its third-quarter 2025 results.
Highlights include:
- Management and franchise revenue increased 3.1 percent at constant currency in the third quarter of 2025.
- Recurring EBITDA guidance upgraded between 11 percent and 12 percent (initially between 9 percent and 10 percent) at constant currency
- Launch of a share buyback tranche for $116,081,000 in the fourth quarter of 2025.
Sébastien Bazin, chairman and chief executive officer of Accor, said, “The Group continued to grow and develop its network during the third quarter of 2025. This performance demonstrates the appeal of its brands and the diversity of its geographical locations, which have enabled it to maintain strong momentum despite a mixed macroeconomic environment. To address these uncertainties, the Group’s profit protection measures are proving effective and now enable us to raise our recurring EBITDA growth target for the year.
“We are therefore pursuing our growth trajectory and operational and financial discipline, while activating new levers for value creation. This is the rationale behind the launch of a new share buyback program. It is also why we are exploring the possibility of a potential listing of Ennismore, our lifestyle brands portfolio. As a key asset for the Group, we intend, if this transaction occurs, to retain control while providing it with even more resources to accelerate its development.”
During the third quarter of 2025, Accor opened 77 hotels, representing 11,200 rooms, resulting in net growth of 2.5 percent in the network over the last 12 months. At the end of September 2025, the Group had a hotel portfolio of 859,830 rooms (5,760 hotels) and a pipeline of more than 250,000 rooms (1,453 hotels).
Third-Quarter 2025 RevPAR
The Premium, Midscale, and Economy (PM&E) division posted a 1.1 percent decrease in RevPAR compared with the third quarter of 2024, driven by pricing. Occupancy was slightly higher over the period, reflecting sustained demand.
- The Europe North Africa (ENA) region posted a 4.6 percent decline in RevPAR compared with the third quarter of 2024. Demand remained strong, with a slight increase in occupancy rates compared to last year. However, the decrease in the number of constrained days compared to the Olympic and Paralympic Games period led to a decline in average prices. ENA RevPAR growth in September returned to positive.
- In France, which accounts for 42 percent of the region’s room revenue and hosted the Paris Games last summer, RevPAR was mechanically down in the third quarter, mainly in Paris. The Province was slightly negative over the same period.
- In the United Kingdom, which accounts for 12 percent of the region’s room revenue, both London and the provinces posted a RevPAR increase in the third quarter, supported by a favorable leisure and corporate event calendar.
- In Germany, which accounts for 12 percent of the region’s room revenue, RevPAR variation was negative in the third quarter, reflecting the country’s persistent economic challenges in a hospitality market largely driven by business demand.
- The Middle East, Africa, and Asia-Pacific region posted a 2.7 percent increase in RevPAR compared with the third quarter of 2024. China’s negative RevPAR continued to weigh on the region, although it improved sequentially during the quarter. Excluding China, the region’s RevPAR was up 5.3 percent, driven by prices.
- In the Middle East-Africa region, which accounts for 21 percent of the region’s room revenue, RevPAR growth was supported by United Arab Emirates and Saudi Arabia with a strong pilgrimage season.
- Southeast Asia, which accounts for 34 percent of the region’s room revenue, was flat, due to security concerns in Thailand and the worsening travel conditions in Indonesia.
- The Pacific, which accounts for 26 percent of the region’s room revenue, continued to post a strong RevPAR in the third quarter.
- In China, which accounts for 19 percent of the region’s room revenue, the RevPAR variation remained negative, although sequentially improved during the quarter.
- The Americas region, which mainly reflects the performance of Brazil (63 percent of the region’s room revenue), delivered a 7.1 percent increase in RevPAR compared with the third quarter of 2024.
- Brazil continued to record strong price increases driven by sustained demand from corporate guests.
The luxury and lifestyle division posted a 5.0 percent increase in RevPAR compared with the third quarter of 2024, with two-thirds of the growth driven by prices and one-third by occupancy rates.
- Luxury, which accounts for 72 percent of the division’s room revenue, posted a 4.3 percent increase in RevPAR compared with the third quarter of 2024. RevPAR growth in the segment was strong across all brands and regions, outperforming the PM&E segment in comparable areas.
- Lifestyle showed a 6.9 percent increase in RevPAR compared with the third quarter of 2024. Despite geopolitical tensions, resort hotels continued to perform well during the quarter, particularly in Turkey, Egypt, and the United Arab Emirates.
Consolidated Revenue
- For the third quarter of 2025, the Group recorded revenue of $1,588,929.85, up 0.1 percent at constant currency compared with the third quarter of 2024. This increase breaks down into a 1.1 percent decrease at constant currency for the Premium, Midscale, and Economy division and a 0.2 percent increase at constant currency for the Luxury & Lifestyle division.
- Currency effects had a negative impact of $78,923,520, mainly related to the Australian dollar (8 percent), the US dollar (6 percent), and the Canadian dollar (7 percent).
- Scope effects, mainly related to the disposal of the Paris Society’s “Festive” business, contributed negatively by $22,052,160. The third quarter of 2024 included $30,176,640 in Olympic-related value-in-kind revenue, with no impact on recurring EBITDA. Together, these two effects had a negative 3 percent impact on third-quarter revenue.
- In order to provide greater clarity regarding the Services to Owners activity and its growth drivers, the Group has chosen to isolate Reimbursed Costs (which consist of the re-invoicing of costs incurred on behalf of hotel owners), whose revenue growth on a like-for-like basis mainly reflects the growth in payroll costs in North America. Reimbursed Costs have no impact on recurring EBITDA, and this new presentation does not affect the medium-term growth outlook given at the Investor Day in June 2023.
- SMDL (Sales, Marketing, Distribution & Loyalty) activities continue to be reported within each of the Premium, Midscale, and Economy & Luxury & Lifestyle divisions.
Premium, Midscale & Economy evenue
Premium, Midscale, and Economy, which included fees from Management & Franchise (M&F), Sales, Marketing, Distribution & Loyalty (SMDL), and Hotel Assets & Other activities of the Group’s Premium, Midscale, and Economy brands, generated revenue of $849,679,980, down 1.1 percent at constant currency compared with the third quarter of 2024.
The Management & Franchise (M&F) revenue stood at $264,641,880, down 1.2 percent at constant currency compared with the third quarter of 2024. This decline mainly reflects the negative variation of RevPAR in the division and the negative impact of conversions from a limited number of management contracts to franchise contracts, as anticipated. The performance of Management & Franchise by region is detailed in the pages hereafter.
Revenue from Sales, Marketing, Distribution, and Loyalty (SMDL) amounted to $283,213,240, down 6.4 percent at constant currency compared with the third quarter of 2024. The third quarter of 2024 included $30,177,940 in Olympics-related value-in-kind revenue, with no impact on recurring EBITDA. Adjusted for this revenue, SMDL growth at constant currency would have been up 4 percent.
Revenue from Hotel Assets and Other amounted to $301,779,400, up 4.4 percent at constant currency compared with the third quarter of 2024. This activity is strongly linked to the strength of RevPAR in Australia and Brazil.
Luxury & Lifestyle Revenue
Luxury & Lifestyle, which included fees from Management & Franchise (M&F), Sales, Marketing, Distribution & Loyalty (SMDL), and Hotel Assets & Other activities of the Group’s Luxury & Lifestyle brands, generated revenue of $415,527,020, up 0.2 percent at constant currency compared with the third quarter of 2024, which was also impacted by currency effects.
The Management & Franchise (M&F) revenue stood at $146,246,940, up 11.7 percent at constant currency compared with the third quarter of 2024. This increase was driven by growth in RevPAR and the network.
Revenue from Sales, Marketing, Distribution, and Loyalty (SMDL) activities amounted to $126,523,930, up 11.2 percent at constant currency compared with the third quarter of 2024, in line with the growth of the Management & Franchise business.
Hotel assets and other revenue amounted to $142,774,710, down 16.4 percent at constant currency compared with the third quarter of 2024. This decline reflects an unfavorable basis of comparison due to Potel & Chabot’s strong activity during the Olympic Games period, as well as a significant scope effect related to the disposal of Paris Society’s “Festive” business.
Reimbursement Costs Revenue
Revenue from reimbursed costs (which consisted of the re-invoicing of costs incurred on behalf of hotel owners) amounted to $344,751,660, up 2.3 percent at constant currency compared with the third quarter of 2024.
Management & Franchise revenue came to $410,919,660, up 3.1 percent at constant currency compared with the third quarter of 2024. This variation reflects RevPAR growth in the Group’s various geographic areas and segments (up 0.8 percent compared with the third quarter of 2024) and net unit growth (up 2.5 percent).
In the PM&E division, the ENA region is mainly impacted by the negative variation in RevPAR and conversions for a limited number of management contracts to franchise contracts, as in previous quarters. The MEA APAC and Americas regions were significantly impacted by currency effects, and the Americas region benefited from the recognition of termination fees.
In the L&L division, both segments mainly reflect solid growth in RevPAR and the network. In the third quarter of 2025, in contrast to the second quarter, the Lifestyle segment benefited favorably from the Residences business.
Outlook
For the full year of 2025, Accor confirmed the following guidance:
- RevPAR growth between 3 percent and 4 percent.
- Net unit growth of around 3.5 percent.
Furthermore, following the implementation of additional cost-saving measures amounting to more than $23,214,800 aimed at partially offsetting the negative impact of exchange rate variations, Accor revised its recurring EBITDA growth guidance for fiscal year 2025 to between 11 percent and 12 percent (between 9 percent and 10 percent initially) at constant exchange rates
