Accor: Revenue Up by 2.3%, United Arab Emirates Impacted by Middle East Conflict
Accor reports a revenue of 1.313 billion euros for the first quarter of 2026, up 2.3% at constant exchange rates compared to Q1 2025. After two remarkably strong initial months, the conflict in the Middle East, which began in late February, significantly affected operations in the region, particularly in the United Arab Emirates, where RevPAR fell by 9%. Despite this, the group maintains a positive momentum, with an overall RevPAR increase of 5.1% and a net network growth of 3.8% over twelve months, despite a negative currency impact of 66 million euros.
A Strong First Half of the Quarter, Disrupted by Geopolitical Situation
The group's activity showed remarkable momentum in the first two months of 2026, in line with trends from the last quarter of 2025. However, the conflict in the Middle East that began in late February altered the macroeconomic and geopolitical landscape, causing severe disruption in demand, especially in the United Arab Emirates. Despite this negative effect, alternative geographies maintained their trajectory: Southeast Asia, which accounts for 32% of the lodging revenue in the Middle East, Africa, and Asia-Pacific region, has become the fastest-growing area with a positive RevPAR after a mixed performance in 2025.
The Premium, Mid-range, and Economy (PME) region generated revenue of 663 million euros, up 4.6% at constant exchange rates. The Luxury & Lifestyle division recorded 341 million euros, down 0.7% at constant exchange rates, impacted by asset disposals (a negative effect of 6.2% linked mainly to the sale of the Festive activity of Paris Society for 21 million euros).
RevPAR and Expansion: Driving Forces Against Headwinds
The group's RevPAR increased by 5.1% during the period, with different trajectories by region. The PME division saw a rise of 4.5%, primarily driven by pricing. In North Africa Europe, RevPAR increased by 2.7%, almost solely fueled by occupancy rates, while in the Americas, the increase reached 9.1%, driven by Brazil with a double-digit RevPAR growth.
The Luxury & Lifestyle division registered a 6.0% increase in RevPAR, with the Luxury segment progressing by 6.8%, driven by all brands and all regions except the Middle East. The Lifestyle segment recorded a +4.2%, more exposed to the Middle East and impacted by the downturn in activity in the United Arab Emirates. Regarding network expansion, Accor opened 48 hotels (6,700 rooms) in Q1 2026, bringing the net network growth to 3.8% over the last twelve months. As of the end of March 2026, the network comprised 879,676 rooms (5,815 hotels) with a pipeline of 260,000 rooms (1,545 hotels).
Return to Shareholders and Group Orientation
Accor continues its capital return program to shareholders. A share buyback program of 450 million euros was announced in February 2026 for the fiscal year 2026. A first tranche of 225 million euros was launched on April 2, 2026. The group also sold part of its stakes in Silenseas (a luxury cruise company) for 66 million euros on February 6, 2026, and signed a memorandum of understanding on April 1, 2026, to sell its 30.56% stake in Essendi (formerly AccorInvest) to Blackstone.
According to Sébastien Bazin, the CEO, the group's growth algorithm remains intact despite the uncertainty surrounding the conflict's evolution. Accor expresses confidence in its ability to record improved performance in 2026, relying on its geographical diversification, the quality of its brand portfolio, and its operational adaptability to minimize impacts and capture growth in areas with sustained demand such as Europe and Southeast Asia.
