Global hospitality group Accor has reported steady growth in the first quarter of 2026, demonstrating resilience in an increasingly complex geopolitical and economic environment. Despite disruptions linked to tensions in the Middle East, the group maintained positive momentum across key markets, supported by strong pricing strategies, geographic diversification and sustained demand in Europe and Asia-Pacific.
Revenue Growth Reflects Stable Demand
Accor recorded group revenue of €1.313 billion for the quarter, representing a 2.3 percent increase at constant currency compared to the same period in 2025. A key driver of this performance was the continued strength of its management and franchise operations, where revenue rose by 8.3 percent to €332 million.
The company’s RevPAR (revenue per available room), a critical performance indicator in the hospitality sector, increased by 5.1 percent year-on-year, reflecting both pricing power and stable occupancy trends across multiple regions.
Expansion Continues Despite Market Uncertainty
Accor’s global footprint continued to expand, with 48 new hotels and more than 6,700 rooms added during the quarter. Over the past 12 months, the group achieved net unit growth of 3.8 percent. As of March 2026, its portfolio comprised 5,815 hotels and nearly 880,000 rooms, with an additional pipeline of approximately 260,000 rooms across 1,545 properties.
This steady expansion underscores Accor’s long-term growth strategy, even as the industry navigates volatility in certain regions.
Regional Performance: Europe and Asia Lead Growth
Performance across regions revealed a mixed but generally positive picture.
In Europe and North Africa, RevPAR rose by 2.7 percent, driven largely by improved occupancy. France remained a strong performer, with both Paris and regional destinations sustaining demand following a robust end to 2025. The United Kingdom also showed continued recovery, while Germany’s performance remained closely tied to trade fairs and event-driven demand.
The Middle East, Africa and Asia-Pacific region recorded a 5.5 percent increase in RevPAR, largely driven by higher room rates. Southeast Asia emerged as a standout performer, with markets such as Thailand and Indonesia returning to growth after a challenging 2025. Singapore and Japan also posted solid gains.
However, geopolitical tensions that escalated toward the end of February significantly impacted the Middle East. The United Arab Emirates saw a 9 percent decline in RevPAR during the quarter, although Saudi Arabia and Egyptcontinued to record growth.
In the Americas, RevPAR increased by 9.1 percent, with Brazil—which accounts for the majority of the region’s revenue—delivering strong double-digit gains.
Segment Performance: Luxury Demand Remains Robust
Accor’s Premium, Midscale and Economy division posted a 4.5 percent increase in RevPAR, primarily driven by pricing. Meanwhile, the Luxury & Lifestyle segment outperformed with a 6.0 percent rise, underpinned by sustained global demand for high-end travel experiences.
Luxury brands, which contribute the majority of revenue within the segment, recorded a 6.8 percent increase in RevPAR across most regions. Lifestyle properties also delivered growth, although resort destinations in the Middle East faced greater disruption due to regional instability.
Navigating Currency and Portfolio Adjustments
While operational performance remained solid, currency fluctuations had a negative impact of €66 million on reported revenue, driven by weaker exchange rates for the US dollar, UAE dirham and Canadian dollar.
Additionally, portfolio adjustments—including the disposal of certain assets such as Paris Society’s “Festive” activities—affected revenue in the Luxury & Lifestyle segment, contributing to a slight decline of 0.7 percent in that division despite underlying growth.
Strategic Moves and Capital Allocation
Accor also advanced key strategic initiatives during the quarter. The group announced a €450 million share buyback programme for 2026, with the first tranche of €225 million launched in early April.
In the luxury travel segment, Accor reduced its stake in its Orient Express-linked cruise venture, generating €66 million in proceeds. The move reflects a broader strategy to optimise its portfolio while maintaining exposure to high-end experiential travel offerings.
The company is also progressing with plans to divest its stake in Essendi (formerly AccorInvest), in partnership with Blackstone, as part of ongoing efforts to streamline operations and enhance shareholder value.
Leadership Perspective: Confidence with Caution
Sébastien Bazin, Chairman and Chief Executive Officer, emphasised that the group’s diversified geographic presence and strong brand portfolio have enabled it to offset regional disruptions.
He noted that while the conflict in the Middle East has introduced uncertainty—particularly in markets where Accor has a significant presence—the company has implemented measures to safeguard performance and adapt to shifting demand patterns.
Bazin also highlighted opportunities in regions currently benefiting from redirected travel flows, particularly in Europe and Southeast Asia.
Outlook: Positioned for Recovery and Growth
Looking ahead, Accor remains cautiously optimistic about its performance in 2026. While geopolitical tensions and macroeconomic pressures continue to pose risks, the group’s flexible operating model, global diversification and focus on high-growth segments position it well to capture emerging opportunities.
For the travel and tourism sector, Accor’s results offer a broader signal: demand remains resilient, particularly in leisure and luxury travel, even as the global landscape becomes more complex.
