Accor Earnings: Travel Demand Remains Strong While EBITDA Margin Improves; Shares Attractive

On the heels of its June 27 capital markets day, narrow-moat Accor reported second-quarter results that included revenue per available room, or revPAR, up 25% on a like-for-like basis. Growth was evenly distributed across its two segments, with premium, midscale, and economy revPAR up 26% and luxury and lifestyle up 24%. The hotelier said summer demand remains strong, aided by increasing inbound travel to Europe and a domestic recovery in China. As a result, Accor now expects 2023 revPAR growth to reach the higher end of its 15%-20% guidance, which is achievable barring a sudden sharp turn for the worse in economic activity, which we see as unlikely.