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b.courtin1

82 posts

Sébastien Bazin reappointed for 3 years as head of Accor Group: “to finish the job”

🏦 Sébastien Bazin, Chairman of Accor, has his mandate renewed for another three years following the presentation of Accor's 2024 results and 2025 priorities. Bazin's focus is on five key projects: enhancing operational performance, accelerating geographical expansion in regions like Latin America, China, India, and the Middle East, finalizing the sale of Accor's 31% stake in AccorInvest within 12-18 months, transforming Ennismore into a top luxury hotel group, and enhancing talent management. The renewal reflects confidence in his leadership, marked by post-COVID growth with significant increases in gross margin, net profit, and royalty value.
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Accor Group announces its definitive exit from AccorInvest

🏦 Jean-Jacques Morin from AccorInvest is set to sell Accor's 31% stake within 18 months as confirmed by Sébastien Bazin during the financial results presentation. AccorInvest has a portfolio of around 700 hotels and the sale is seen as an opportunity after the company's post-COVID revival. The sale proceeds will predominantly benefit shareholders, with a commitment to return approximately €680 million annually and 90% of the proceeds earmarked for dividends or share buybacks. The remaining funds will be used for debt reduction.
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  • 2 min

Accor’s 2024 results confirm the group is on the right track

🏦 Accor's Luxury & Lifestyle division sees double-digit growth, with the Luxe & Lifestyle division closing in on the Premium Midscale Economy division's lead. In 2024, Accor's gross operating profit hit a record €1.12 billion, a 12% increase from 2023. The group opened approximately 280 hotels and improved margins on management and franchise contracts. The Luxury & Lifestyle division's current EBE was €427 million, up 21% from 2023, while the PME division's EBE was €809 million, an 8% increase. Net profit was €610 million for 2024, slightly down from €633 million in 2023. Each new room added to the portfolio has seen a 90% increase in value over five years, against a 12% volume growth.
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2024 review: Covivio Hotels continues its growth and transformation

🏨 Covivio Hotels' portfolio, including 283 hotels and 39,477 rooms across 12 countries, valued at €6.439 billion, achieved a 1.5% increase in value and produced revenue growth of +7.2% like-for-like. In France, Italy, and Spain, the hotel asset value grew by +2%, +4.8%, and +3.4%, respectively. The portfolio yields an average return on assets of 6.1%, with long-term leases averaging 11 years. Recurring net income rose by +8.1% to €258.1 million in 2024. A restructuring deal with AccorInvest involved nearly €800 million and the group signed disposals totaling €455 million at a margin of +4%. New acquisitions include a €81 million hotel in Tenerife.
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  • 3 min

IHG Hotels stays in the growth race with the acquisition of Ruby Hotels, its 20th brand

🏨 InterContinental Hotels Group (IHG) acquired Ruby Hotels for €110 million, adding 20 properties and nearly 3,500 rooms to its inventory. Ruby Hotels, founded in 2013, has locations in major European cities and plans for 10 more projects totaling 2,235 rooms. IHG aims for Ruby Hotels to have over 120 properties in 10 years and 250 in 20 years, with franchise fees from Ruby expected to hit $8 million by 2028 and $15 million by 2030. Hyatt and Hilton have also made significant acquisitions, with Hyatt purchasing Playa Hotels & Resorts for $2.6 billion and Hilton acquiring Graduate and Sydell Groups for university campus and lifestyle brand expansion. Marriott added 10,500 rooms through a marketing agreement with Sonder.
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  • 4 min

Louis de Vilmorin, Co-founder and Managing Director of WellWays SA

🏠 Louis de Vilmorin, former International Director of Guerlain Spas, helped open approximately 15 spas in luxury hotels. A market study is emphasized before adding a spa, given that 60% of five-star hotels have spas, while 40% do not. Investing in a luxury hotel spa can require 10 to 20 million euros, and profitability often depends on local clientele memberships. Partnerships with brands like Guerlain are seen as beneficial for their expertise and retail opportunities. The integration of wellness in hospitality management, especially in education like at EHL Lausanne, is debated for its macro importance.
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December 2024: A strong finish for European hospitality

🎄 December 2024 marked a rise in Europe's hospitality sector, with the average occupancy rate boosting by 1.6 points. This growth was primarily propelled by the upscale segment, offsetting weaker performance in the lower-tier categories. The end of the year showed better performance indicators, including occupancy and average daily rates (ADR), signalling Europe's attractiveness to international travelers during the holiday season, despite cautious domestic demand.
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Outlook for 2025 on the three major blocs of European hotel markets

📈 MKG Consulting's annual forecasts anticipate relative slowdown for France and the UK in 2024, with better performance expected in 2025 albeit below historical standards. Northwestern European countries, including Germany and the Benelux, will likely face alternating slowdowns after a positive 2024. Southern Europe is predicted to sustain strong growth in 2025 due to controlled volume compression, despite a decline in visitation. For in-depth country and segment analysis, MKG Consulting's detailed reports are available online.
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