Accor revealed its medium-term growth ambitions on Tuesday, with plans to open more than 1200 hotels in the next five years.
This will increase the hotel group’s properties by more than one-fifth as it bets on a strong consistent recovery following the pandemic.
Accor also revealed plans to return 3 billion euros (AU$4.92b) to shareholders in the 2023-27 period via share buybacks and dividends. The group also raised its 2023 core earnings outlook to between €920 and €960 million (AU$1508-1573m).
Rising cost of living hasn’t hindered the accommodation industry as consumers have rushed to travel following the pandemic.
Accor is now anticipating 2023 RevPAR (revenue generated per room regardless of if the room is occupied or not) growth of 15-20 per cent compared with 2022.
The hotel group upped the average price of its rooms from €89 per night to €106 following a reorganisation of the company, which has played a significant role in the growth of Accor.
CEO Sébastien Bazin said the growth was attributable to the international demand for travel and he expects this to continue across the group’s various geographies and segments.
Bazin told Reuters that the demand reflected “the desire to travel, the growth of the middle classes, especially in Asia, and the appetite of younger generations for experiences.”
Accor is looking to venture further into the APAC and Middle East market.
The group announced in May that it’s planning on doubling its presence in Saudi Arabia by 2027 and opening hotels in the capital Riyadh and Jeddah.
