Accor warns of bigger-than-expected 2025 forex impact

[PARIS] Accor, Europe’s biggest hotel group, on Thursday (Jul 31) forecast a larger-than-expected impact from adverse exchange movements this financial year, causing its shares to drop more than 12 per cent in early trading.

While the French-based company reported a 9.4 per cent rise in earnings before interest, taxes, depreciation and amortisation (Ebitda) to 552 million euros (S$818.4 million), ahead of market expectations, it warned that it would be adversely affected by around 60 million euros on the basis of expected exchange rates.

“Accor is now guiding for a negative impact of circa 5 per cent from FX, against a consensus of approximately 2 per cent“, JPMorgan said in a note, warning that would “weigh on the shares today”.

Accor’s revenue per available room (RevPar), which is one of the industry’s main performance indicators, fell below the consensus of 4.7 per cent to 4.1 per cent for the second quarter.

Despite that, the operator of brands including Ibis and Novotel, said that it remained confident of hitting its medium-term growth targets.

“The momentum remains positive, despite the negative impact of exchange rate fluctuations – in particular the appreciation of the euro against the dollar,” finance chief Martine Gerow told reporters.

Accor said that revenue in the six months to Jul 31 reached 233 million euros, down from 253 million euros a year earlier.

The group reiterated its outlook for 2025, including RevPar growth of between 3 per cent and 4 per cent. REUTERS