Accor: RevPAR Rises by 5.1% but Revenue Declines, a Mixed First Quarter
Accor has released its first quarter 2026 results, revealing a dichotomy between operational performance and published accounting. While RevPAR increased by 5.1%, driven by sustained demand across most geographies, quarterly revenue fell by 2.7% in published data, hampered by unfavorable exchange rate effects amounting to €66 million. The escalating conflict in the Middle East, which began in late February, is starting to impact certain segments and regions, notably the United Arab Emirates with a 9% decrease in RevPAR.
Financial Performance Overview
The consolidated revenue for the quarter amounted to €1.313 billion. At constant exchange rates, it increased by 2.3%, confirming robust organic activity. However, this growth disappears in published data, showing a decline of 2.7% compared to Q1 2025 (€1.349 billion). Exchange rate effects largely explain this difference: they represented a negative impact of €66 million, primarily due to the decline of the US dollar (-10%), the UAE dirham (-10%), and the Canadian dollar (-6%). Scope changes, mainly related to the divestment of the Festif activity from Paris Society, had a negative impact of €18 million. Beyond these technical effects, the group emphasizes that business for the first two months of 2026 was strong, before deteriorating from the end of February with the onset of the conflict in the Middle East.
Revenue Composition by Division
The revenue composition by division reveals a marked progression of the group's asset-light model. The Luxury & Lifestyle Management & Franchise segment showed a growth of 15.2% at constant exchange rates, while the Premium, Midscale & Economy Management & Franchise branch grew by 4.3%. These increases reflect the growth in RevPAR and network expansion. Conversely, the hotel assets and other activities in the Luxury & Lifestyle segment recorded a 20.0% decrease at constant exchange rates, primarily due to the divestment of the Festif activity from Paris Society (€21 million) and a decline in restaurant activities at Paris Society and Rikas since the beginning of the conflict in the Middle East. The Premium, Midscale & Economy division generated €663 million (up 4.6% at constant exchange rates), while Luxury & Lifestyle posted €341 million (down 0.7% at constant exchange rates, but would have recorded a +5.5% without the divestments). The overall RevPAR increased by 5.1%, reaching €69, with average prices rising by 3.4% to €112 while the total occupancy rate improved by 1.0 point to 61.5%.
Regional Dynamics
Regional dynamics are mixed. The Americas showed the strongest growth with a RevPAR increase of 9.1%, boosted by Brazil, which represents 59% of the regional accommodation revenue and displays double-digit RevPAR growth. MEA APAC grew by 5.5%, supported by Southeast Asia (32% of the revenue), which has become the fastest-growing regional area again, with Thailand and Indonesia returning to positive territory in Q1 2026. The Pacific continues strong growth. However, the Middle East-Africa (27% of regional revenue) suffers from the conflict impact: the United Arab Emirates recorded a 9% decrease in RevPAR, while Saudi Arabia and Egypt continue to grow. Europe North Africa showed a moderate RevPAR growth of 2.7%, almost solely driven by occupancy rates, with France representing 44% of the regional accommodation revenue. Regarding development, the group opened 48 hotels (over 6,700 rooms) in Q1 2026, bringing the net network growth to 3.8% over twelve months. The portfolio reached 5,815 hotels and 879,676 rooms, with a solid pipeline of 1,545 hotels and 260,000 rooms. The group maintains its asset-light model with 442,306 managed rooms and 416,736 franchised rooms against only 20,634 in hotel assets. Accor also launched the first tranche of its 2026 share buyback program on April 2, 2026, for €225 million out of a total of €450 million planned for the year.
