French hospitality group Accor saw revenue rise by more than a third in first-quarter trading, with London performing well despite a decline in the UK’s regional markets.
Total revenue was up 34.2 per cent, bringing in €987 million. Total revenue per available room (revpar) across the group was up 1.6 per cent. Europe remained “resilient”, with revpar up 3.3 per cent, although the UK was down 0.9 per cent.
Despite the wider UK trend, the group reported a “highly contrasted situation” between London and UK regional cities, with London revpar up 5.8 per cent. Accor said “persistently strong inbound tourism” was behind this concentrated growth, which offset the decline in regional markets. The group said the regional decline of four per cent was “attributable to a weak corporate demand amid Brexit uncertainties”.
Elsewhere, Asia-Pacific revpar fell by 0.6 per cent, which Accor put down to oversupply in major Australian cities. The Middle East and North America also experienced declines (0.7 per cent and 2.1 per cent respectively), while South America was up 11.2 per cent.
Sébastien Bazin, chairman and CEO of Accor, said: “In a turbulent macroeconomic environment, the group’s first-quarter revenue performance highlights the effectiveness of our transformation and the soundness of our strategy. Europe remained strong, while South America continued its robust recovery.
“We achieved sustained business development over the period, in line with our medium-term objectives, and continued to strengthen our pipeline, with an ever-increasing share of luxury hotels, which generate higher fees per room. Performing well and growing steadily stronger, the group can tackle the rest of the year with confidence.”