Accor Group is preliminarily projecting that negotiated corporate hotel rates for 2025 are likely to increase by "mid-single digits" compared with this year.
The Paris-based company’s chief financial officer Martine Gerow said that corporate rate rises for 2025 were likely to be similar in scale to the increase seen in 2024.
"It's a bit early to tell," Gerow said of 2025 rates. "But in terms of the guidance that we are giving our sales team is to have a rate increase in the same territory as what we did this year, which was … mid-single digits."
Accor's systemwide third-quarter revenue per available room (RevPAR) increased by 5.3 per cent to €80 on a like-for-like and constant-currency basis, added Gerow during the company’s third quarter presentation last week. While Accor’s total revenue for Q3 increased by 12 per cent year-on-year to €1.43 billion.
Gerow did not delve too deeply into Accor's business travel demand but noted that the company has “seen higher growth coming from business and groups" than leisure customers.
Accor’s Q3 performance
Accor’s Q3 results revealed that RevPAR for the European and North Africa region rose by 6 per cent year-on-year, with its home market of France being boosted by hosting the Paris Olympic Games during the quarter, while business in the French regions was “resilient” this summer.
The company added that RevPAR was “slightly positive” for the UK in Q3, while noting a “similar performances between London and the provinces”.
Meanwhile, Accor said RevPAR growth in Germany was “stronger” this summer than in both France and the UK.
Accor’s Q3 results also revealed that RevPAR across its premium, midscale and economy group increased by 4.7 per cent to €66, while it went up by 6.8 per cent in its luxury and lifestyle group to €163.
Total global third-quarter average daily rate (ADR) increased by 4.1 per cent year-on-year to €113. This included a 3.9 per cent rise to €93 among Accor’s premium, midscale and economy group and a 2.8 per cent rise to €241 for luxury and lifestyle properties.
Accor’s Q3 systemwide occupancy increased by 0.8 percentage points year-on-year to reach 70.5 per cent.
The company projected that full-year RevPAR for the whole of 2024 would increase by 4 to 5 per cent compared with the previous year.