All performance indicators were in line or exceeded Group guidance in 2023. This solid performance and the Group’s confidence in continued business growth enabled the Group to return a total of €676 million to its shareholders during the year. In 2023, Accor opened 291 hotels, corresponding to 41,000 rooms, i.e., net network growth of 2.4% in the last 12 months. At end-December 2023, the Group had a hotel portfolio of 821,518 rooms (5,584 hotels) and a pipeline of 225,000 rooms (1,315 hotels).
The Group reported revenue of €5,056 million in 2023, up 18% like-for-like (LFL) compared with 2022.
This growth breaks down into a 17% increase for the Premium,
Midscale and Economy (PM&E) division and 22% for the Luxury & Lifestyle division.
Scope effects, linked mainly to the full-year effect of Paris Society (acquired in 2022)
and the takeover of Potel & Chabot (in October 2023) in the Luxury & Lifestyle division
(the Hotel Assets & Other segment), positively contributed for €285 million.
Currency effects had a negative impact of €228 million, stemming mainly from the
Australian Dollar (-7%), the Egyptian Pound (-40%) and the Turkish Lira (-32%).
Premium, Midscale and Economy, which includes fees from Management & Franchise (M&F), Services to Owners and Hotel Assets & Other activities of the Group's Premium, Midscale and Economy brands, generated revenue of €2,960 million, up 17% LFL versus 2022.
This increase reflects the solid business levels recorded over the period. Management & Franchise (M&F) revenue stood at €854 million, up 27% LFL versus 2022 and in line with the increase in RevPAR over the period (+24%).
The regional performance of Management & Franchise is detailed in the pages hereafter. Services to Owners revenue, which includes the Sales, Marketing, Distribution and Loyalty division, as well as shared services and the reimbursement of hotel costs, came to €1,076 million up 11% LFL compared with 2022.
This increase, which was more measured than RevPAR growth, reflects the comparison basis from the previous year which included the rebilling of costs incurred by Accor as part of its reception services for supporters during the soccer World Cup in Qatar.
Hotel Assets & Other revenue was up 15% LFL relative to 2022. This segment, closely
linked to business in Australia, was impacted by a less favorable base effect owing to
the recovery in leisure tourism which materialized earlier than for the rest of the Group.
The Group confirmed its medium-term growth prospects as disclosed during the Investor Day on June 27, 2023:
• Annualized RevPAR growth of between 3% and 4% (CAGR 2023-27)
• Average annual network expansion of between 3% and 5% (CAGR 2023-27)
• M&F revenue growth of between 6% and 10% (CAGR 2023-27)
• A marginally positive EBITDA contribution from Services to Owners
• EBITDA growth of between 9% and 12% (CAGR 2023-27)
• Recurring free cash flow conversion in excess of 55%
• A shareholder payout of around €3 billion over 2023-2027 including notably a
share buy-back program for an amount of around €400 million to be launched
during 2024.
