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1. Company Snapshot

1.a. Company Description

Accor SA operates a chain of hotels.It operates through two segments, HotelServices, and Hotel Assets & Other.The company owns, operates, manages, and franchises hotels.


It also provides digital services to independent hotel operators through D-edge platform; ResDiary, a flat-rate online table reservation system that is designed for restaurant owners; Gekko solutions, including digital hotel distribution and loyalty platforms for the travel industry and large companies; and concierge and customized services through John Paul, as well as hotel booking services; and other services in events, fine dining, and entertainment through Paris Society and Potel & Chabot platforms.In addition, the company offers distribution activities, such as private sales of hotel accommodation and luxury vacations through VeryChic platform; rental of private residences operated by onefinestay; and coworking spaces through Wojo and Mama Works.Further, it provides hotel management, procurement, cash management, IT, and advertising services, as well as various advisory services.


As of December 31, 2021, the company operated 5,298 hotels with 777,714 rooms in 110 countries worldwide.The company was founded in 1967 and is headquartered in Issy-les-Moulineaux, France.

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1.b. Last Insights on AC

Accor SA's recent performance faces challenges from intensifying competition in the hospitality industry. The company's expansion plans, including the reintroduction of the Peppers hotel brand in Australia and the addition of three properties in Italy to its Emblems Collection, may not be enough to offset the growing presence of other players. Furthermore, the appointment of a new CEO for South Asia may lead to short-term integration challenges. Meanwhile, the global wellness tourism market, in which Accor is a key player, is expected to soar, but this growth may not be evenly distributed.

1.c. Company Highlights

2. Accor Delivers Strong 2024 Performance with Record EBITDA and Solid Growth Momentum

Accor reported a robust financial performance for 2024, with recurring EBITDA reaching a record €1.120 billion, up 12% year-over-year. This strong result was driven by top-line growth and improved operating leverage, with margins expanding by 100 basis points. The company also delivered a solid net profit of €610 million, translating to a diluted EPS of €2.33, up 5% from the previous year. RevPAR (Revenue Per Available Room) grew 5.7% for the full year, with Q4 contributing 5.8%, supported by balanced occupancy and rate gains. The company's cash conversion rate stood at 55%, underscoring its operational efficiency. Sébastien Bazin, Accor's CEO, highlighted the importance of AI in enhancing hospitality while maintaining human interaction, stating, "AI is a tool to improve efficiency and customer relations, not replace the human touch."

Publication Date: Feb -28

📋 Highlights
  • Strong Financial Performance:: Accor reported record EBITDA of €1.120 billion, up 12% year-over-year, with a 55% cash conversion rate and recurring free cash flow of €614 million. Net profit reached €610 million, with diluted EPS of €2.33, up 5%.
  • RevPAR Growth:: 2024 RevPAR grew 5.7%, with Q4 at 5.8%, driven by balanced occupancy and rate gains. Luxury and Lifestyle saw 10% RevPAR growth, while PME RevPAR was 4% in Q4, with strong growth in Southeast Asia and the Americas.
  • International Travel Recovery:: International travel is expected to grow 3-5% in 2025, driven by strong performance in the Middle East, Asia-Pacific, and China. Leisure travel trends like "gig travel" and remote work are extending stays, prioritizing customer experience.
  • ESG and Strategic Initiatives:: Accor implemented Gaia 2.0, achieving 90% coverage for managed hotels and 67% for franchises. Diversity efforts advanced, with 39% female leadership, and the company highlighted strong loyalty program growth nearing 100 million members.
  • AccorInvest Disposal and Shareholder Returns:: Accor announced the disposal of a 30-31% stake in AccorInvest, a complex process expected to take 12-18 months. The company also launched a €440 million buyback, exceeding initial expectations, and proposed a 7% dividend increase.

Operational Highlights and Strategic Progress

Accor's operational resilience was evident across its segments. The PME (Premium, Midscale, and Economy) segment reported a 4% RevPAR growth in Q4, driven by strong performance in Southeast Asia and the Americas. The Luxury and Lifestyle segment outperformed, delivering a 10% RevPAR growth, supported by notable openings and signings. The company also achieved a net unit growth of 3.5% and a pipeline growth of 3.8%, with record signings up 11%. On the ESG front, Accor made significant strides, achieving 90% coverage for managed hotels under its Gaia 2.0 program and exceeding targets for AccorCertified adoption. Diversity efforts also advanced, with 39% of leadership roles held by women, reflecting progress toward gender parity.

2025 Outlook and Strategic Priorities

Looking ahead to 2025, Accor expects solid growth momentum, albeit slightly below 2024 levels, driven by strong January performance. Management anticipates 3-5% growth in international travel, particularly in the Middle East, Asia-Pacific, and China. Leisure travel remains a priority, with trends like "gig travel" and remote work extending stays. The company also announced a €440 million buyback program, exceeding initial expectations, signaling confidence in its ability to meet cash flow and EBITDA targets. Sébastien Bazin outlined five strategic priorities, emphasizing execution, Ennismore's growth, talent development, China focus, and core partner relationships.

Valuation and Investor Takeaways

Accor's strong financial performance and operational resilience are reflected in its valuation metrics. The stock currently trades at an EV/EBITDA ratio of 12.53, slightly above its peer average, indicating that growth prospects are largely priced in. The forward P/E ratio, based on analyst estimates of 6.1% revenue growth for 2025, suggests a reasonable valuation given the company's mid-term EBITDA growth target of 10% annually. The dividend yield of 2.46% and free cash flow yield of 3.48% provide additional appeal for income-focused investors. While the company faces challenges such as geopolitical uncertainties and inflation stability, its disciplined execution and strong brand portfolio position it well for long-term success.

3. NewsRoom

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The Journey Continues: Accor's Most Anticipated 2026 Openings

Dec -02

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Is Accor’s Rising Share Price Supported by Its Expanding Global Partnerships?

Nov -28

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The repositioning of the Pullman brand

Nov -25

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Ads for Booking.com and three hotel chains banned over misleading prices

Nov -19

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PULLMAN HOTELS & RESORTS UNVEILS A NEW ERA

Nov -15

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Accor shapes the future of hospitality with a bold vision, global mindset, and passion for sustainability

Nov -12

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Accor (ENXTPA:AC): Exploring the Valuation After Recent 12% Share Price Rally

Nov -09

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Assessing Accor’s Valuation After 12.4% Monthly Surge Amid Expansion News

Nov -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.82%)

6. Segments

Premium, Mid. & Eco

Expected Growth: 5%

{'Premium': 'Strong brand reputation, high-end amenities, and strategic locations drive growth, appealing to luxury-seeking travelers.', 'Mid': 'Balanced price and quality, modern amenities, and loyalty programs attract a wide customer base, fueling steady growth.', 'Eco': 'Sustainable practices, eco-friendly certifications, and affordable prices resonate with environmentally conscious travelers, driving expansion.'}

Luxury & Lifestyle

Expected Growth: 7%

Accor's Luxury & Lifestyle segment growth is driven by increasing demand for high-end travel experiences, strategic partnerships and acquisitions, expansion into new markets, and a strong brand portfolio including Raffles, Fairmont, and Sofitel. Additionally, the segment benefits from a growing middle class in emerging markets and a focus on experiential travel.

Holding & Intercos

Expected Growth: 4%

Accor SA's Holding & Intercos segment growth is driven by increasing demand for luxury hospitality, strategic acquisitions, and expansion into emerging markets. Additionally, the company's focus on digital transformation, loyalty programs, and cost optimization initiatives contribute to its growth momentum.

7. Detailed Products

Luxury Hotels

High-end hotels offering luxurious amenities and services

Midscale Hotels

Hotels offering comfortable rooms and amenities at an affordable price

Economy Hotels

Budget-friendly hotels with basic amenities

Resorts

Luxury resorts offering recreational activities and amenities

Apartments and Serviced Residences

Long-stay accommodations with kitchenette and amenities

Cruise and Tour Operations

Cruise and tour packages offering unique experiences

Accor Live Limitless (ALL)

Loyalty program offering rewards and benefits

Meeting and Event Spaces

Conference and event spaces for corporate and social events

Food and Beverage Services

Restaurants, bars, and catering services

8. Accor SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Accor SA faces moderate threat from substitutes as customers have limited options for luxury hotel experiences, but there are alternative accommodation options available.

Bargaining Power Of Customers

Accor SA's customers have low bargaining power due to the company's strong brand reputation and limited alternatives for luxury hotel experiences.

Bargaining Power Of Suppliers

Accor SA's suppliers have moderate bargaining power due to the company's dependence on them for high-quality services and amenities.

Threat Of New Entrants

Accor SA faces low threat from new entrants due to the high barriers to entry in the luxury hotel industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

Accor SA operates in a highly competitive industry with many established players, leading to high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.71%
Debt Cost 3.95%
Equity Weight 51.29%
Equity Cost 9.02%
WACC 6.55%
Leverage 94.96%

11. Quality Control: Accor SA passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NEXT

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
InterContinental Hotels

A-Score: 5.4/10

Value: 3.8

Growth: 6.2

Quality: 6.3

Yield: 1.9

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Whitbread

A-Score: 5.2/10

Value: 4.4

Growth: 5.9

Quality: 3.8

Yield: 4.4

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Redrow

A-Score: 4.9/10

Value: 6.7

Growth: 3.8

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Accor

A-Score: 4.8/10

Value: 3.6

Growth: 6.2

Quality: 5.3

Yield: 3.1

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Pandox

A-Score: 4.4/10

Value: 4.3

Growth: 5.4

Quality: 3.9

Yield: 2.5

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.62$

Current Price

46.62$

Potential

-0.00%

Expected Cash-Flows