Latest news with #AccorGroup
Bloomberg
21-05-2025
- Business
- Bloomberg
Qatar Tourism & Accor Explore the Future of Travel
H.E. Saad Bin Ali Al-Kharji, Chairman, Qatar Tourism, State of Qatar and Sébastien Bazin, Group Chairman & CEO, Accor Group explore the future of tourism amid shifting traveler expectations, emerging markets, and industry transformation with Bloomberg's Joumanna Bercetche at the 2025 Qatar Economic Forum, Powered by Bloomberg. (Source: Bloomberg)
Yahoo
26-04-2025
- Business
- Yahoo
Accor Says April Bookings Have Rebounded: No ‘Cracks in Demand'
Accor, the Paris-based hotel operator, reported solid first-quarter performance despite broader economic concerns related to recent U.S. trade policies. "We're not seeing cracks in demand," said Martine Gerow, chief financial officer, on an earnings call Thursday. "We feel good about how April and May are trending." While March performance softened compared to January and February, Gerow attributed this primarily to calendar shifts, notably Easter moving to April this year, which created a temporary headwind. April bookings had rebounded and "are back to positive territory," particularly in popular French spots like Paris and Provence, the CFO said. Accor's "visibility is limited beyond May," Gerow said, because most of its hotel reservations are non-refundable. Hotels are also often booked more last-minute than flights and trains are. Accor Group CEO Sébastien Bazin said on April 1 that the company had seen a 25% drop in European bookings to the U.S. this summer. When an analyst asked Gerow about this, she said things didn't ultimately turn out as dire as that overall. Accor "saw softness in March, with overall European bookings to the U.S. down about 10%." However, demand from some European countries, such as Germany, Denmark, the U.K., and France had higher double-digit percentage declines, particularly among individual business travelers. So far, the company hasn't seen much change in U.S. hotel bookings in April and May versus last year. Yet Gerow emphasized that the impact had been minimal on Accor. Americans traveling outside the U.S. represent less than 3% of Accor's room revenue, with the entire U.S. market (including international travelers to the U.S.) accounting for only about 5%. "The only market where we've seen an inflection, and it's actually benefiting us, is Canada," Gerow said. "We see Canadians who had been planning to travel in the U.S. actually staying in Canada," she said. "Some events which were planned in the U.S. are now being repositioned in Canada." That trend is somewhat positive for Accor because it has more properties in Canada than in the U.S. Some analysts have worried that rising interest rates because of bond market turmoil in reaction to tariffs would impact access to capital and financing for hotel developers, while others have been eying potential inflation from tariffs in the inputs to build and run hotels. "As a service business, the direct impact of tariffs on Accor is clearly minimal," Gerow said. "Nevertheless, we are closely monitoring the situation, and we have tightened our cost control measures in this respect." All the talk of economic uncertainty had not led to any impact on new construction or any withdrawal of hotel development plans, she said. "What we do see is a bit more time, a bit of a longer process in terms of renovation, but it's more anecdotal," she said. "It's not a trend at this point." When asked about potential impacts from economic uncertainty on the company's margins, Gerow noted that Accor's cost structure is "more flexible today and more variable today than it was pre-Covid." The company has implemented cost control measures to help weather any potential change in demand, with Gerow stating that "a couple of points of RevPAR is certainly something that we can manage." In the first quarter, Accor saw its worldwide revenue per available room (RevPAR) rise 5% year-over-year for properties open for the past year, "driven by strong performance in the Middle East and Southeast Asia and the Americas." The hospitality group grew its revenue by 9.2% in the quarter, driven by a combination of pricing power and growth in the size of its hotel network. Some countries in Europe had relative weakness. Europe had overall RevPAR up just 0.6% year-over-year. France reported flattish to slightly negative growth in the first quarter. The United Kingdom saw low single-digit negative RevPAR growth, reflecting lower consumer confidence as customers prioritize savings over spending, Gerow said. The luxury and lifestyle segment emerged as a particular bright spot with 8.3% RevPAR growth year-over-year worldwide. Luxury brands specifically posted 9% growth, with rate increases driving most gains, fueled by sustained elevated levels of cross-border travel. The hotel group reached a milestone of 100 million loyalty program members last month. On the development front, net unit growth reached 2.7% on a last-twelve-month basis. Yet the only question analysts asked Gerow on the earnings call was about demand. She said: "Thus far, we are not seeing significant changes in demand trends in our key markets." Accor's Group Deputy CEO Jean-Jaques Morin will speak on-stage at Skift Asia Forum in mid-May. Airlines' post-pandemic growth will be tested as tariffs, mass layoffs within the federal government, and weakened international demand continue to create economic uncertainty. Read More What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance. Read the full methodology behind the Skift Travel 200. Get breaking travel news and exclusive hotel, airline, and tourism research and insights at Sign in to access your portfolio
Daily News Egypt
16-03-2025
- Business
- Daily News Egypt
ADFD unveils AED 440m Sofitel Legend Pyramids Giza to elevate Egypt's tourism sector
Abu Dhabi Fund for Development (ADFD) has announced the launch of the Sofitel Legend Pyramids Giza, a landmark luxury hotel set to enhance Egypt's tourism industry and strengthen economic ties between the UAE and Egypt. The five-star property, valued at AED 440m ($120m), underscores the UAE's commitment to fostering global economic partnerships and sustainable development. Featuring 302 elegantly designed rooms with state-of-the-art amenities, the hotel will offer a premier hospitality experience. It will also house a selection of international restaurants and entertainment facilities, establishing itself as a top-tier destination for luxury travelers. The project is backed by a strategic partnership between the UAE and Egyptian private sectors. ADFD is contributing 84.28% of the project's capital through Abu Dhabi Tourism Investment Company (ADTIC), with additional shares held by Abu Dhabi National Hotels (10.22%), Overseas Tourism Investment Company (0.4%), Misr Hotels Company (2.73%), and the Egyptian General Company for Tourism & Hotels (2.37%). The foundation stone was laid by Giza Governor Adel Al-Naggar and ADFD Director General Mohammed Saif Al Suwaidi, alongside officials from both nations. The hotel will be managed by Accor Group, a globally renowned hospitality brand, ensuring world-class service and guest experiences. Mohammed Saif Al Suwaidi stated: 'The Sofitel Legend Pyramids Giza project is a milestone in strengthening Egypt's tourism sector. Through our partnership with Accor Group, we aim to enhance the country's hospitality landscape while reinforcing our commitment to sustainable investments and economic growth.' Giza Governor Adel Al-Naggar emphasized the project's strategic significance, noting: 'This development will elevate Egypt's tourism infrastructure, attracting visitors from around the world thanks to its prime location near our most iconic archaeological sites.' This investment aligns with the UAE's broader vision of supporting Egypt's national development agenda and advancing the United Nations Sustainable Development Goals (SDGs), particularly Goal 8 (Decent Work and Economic Growth) and Goal 9 (Industry, Innovation, and Infrastructure).
Dubai Eye
15-03-2025
- Business
- Dubai Eye
Abu Dhabi Fund for Development launches luxury hotel project in Egypt
The Abu Dhabi Fund for Development (ADFD) has announced the launch of the 'Sofitel Legend Pyramids Giza' project, a luxury five-star hotel intended to be a landmark addition to the hospitality and tourism sector in Egypt. Valued at AED 440 million ($120 million), the project will feature 302 rooms equipped with state-of-the-art amenities and a selection of international restaurants and entertainment facilities. The project is financed through a strategic partnership between the private sectors of the UAE and Egypt. ADFD is contributing 84.28 per cent of the project's capital through Abu Dhabi Tourism Investment Company (ADTIC). Additionally, Abu Dhabi National Hotels owns 10.22 per cent, Overseas Tourism Investment Company holds 0.4 per cent, Misr Hotels Company owns 2.73 per cent, and the Egyptian General Company for Tourism & Hotels owns 2.37 per cent. The foundation was jointly laid by the Director General of ADFD, Mohamed Saif Al Suwaidi, and the Governor of Giza, Engineer Adel Al-Najjar, alongside more Egyptian and UAE officials. Blending rich history with modern luxury, the project promises an exceptional hospitality experience that meets the highest international standards. Abu Dhabi Tourism Investment Company is partnering with Accor Group, a globally renowned hospitality brand, to manage the hotel and ensure excellence in service and guest experience. 'Sofitel Legend Pyramids Giza' project is a significant step in strengthening Egypt's tourism sector, offering a world-class hotel experience that underscores our commitment to sustainable investments in promising markets. Through our partnership with Accor Group, we aim to elevate the tourism industry while supporting economic and social development in Egypt," Al Suwaidi said.
Arabian Business
14-03-2025
- Business
- Arabian Business
Abu Dhabi Fund for Development launches $120mn luxury hotel project in Egypt
The Abu Dhabi Fund for Development (ADFD) announced the launch of a luxury hotel project in Egypt, envisaging investments to the tune of $120 million (AED 440 million). The 5-star hotel project, named 'Sofitel Legend Pyramids Giza', is part of the Abu Dhabi fund's efforts to enhance its strategic investments in the African country. Abu Dhabi Fund's Egypt luxury hotel project The hotel project is also aimed at contributing to the development of the hospitality and tourism sector in Egypt and the broader Middle East. The project, featuring 302 rooms equipped with state-of-the-art amenities and a selection of international restaurants and entertainment facilities, will be financed through a strategic partnership between the private sectors of the UAE and Egypt. While ADFD will contribute 84.28 per cent of the project's capital through Abu Dhabi Tourism Investment Company (ADTIC), the remaining equity stake will be held by Abu Dhabi National Hotels (10.22 per cent) Overseas Tourism Investment Company (0.4 per cent), Misr Hotels Company (2.73 per cent) and the Egyptian General Company for Tourism & Hotels (2.37 per cent). Blending rich history with modern luxury, the project promises an exceptional hospitality experience that meets the highest international standards. Abu Dhabi Tourism Investment Company will partner with Accor Group, a globally renowned hospitality brand, to manage the hotel and ensure excellence in service and guest experience. Enhancing Egypt's tourism sector Mohamed Saif Al Suwaidi, Director General of ADFD, said through the partnership with Accor Group, the Fund aims to elevate the tourism industry, while supporting economic and social development in Egypt. 'This investment is a reflection of ADFD's commitment to advancing sustainable development projects and driving investment partnerships that fuel economic growth in partner countries,' he said. Engineer Adel Al-Najjar, the Governor of Giza, said the project is a model for successful investment collaboration between Egypt and the UAE. 'We look forward to expanding such partnerships to further our sustainable development goals,' he said. By blending luxury hospitality with Egypt's rich cultural heritage, the Sofitel Legend Pyramids Giza project is expected to strengthen the country's position as a premier global tourist destination. Its strategic location near iconic landmarks will attract visitors from around the world, creating new investment opportunities and driving the sustainable growth of Egypt's tourism sector.
