Half Year 2026 Accor SA Earnings Call Transcript
Key Points
- Accor SA (ACCYY) delivered a solid H1 2026 with Management & Franchise (M&F) revenue up 4.8% and EBITDA up 9.1% at constant currency, despite geopolitical headwinds.
- The company's profit protection plan, activated in March, effectively offset the impact of the Middle East conflict, with M&F EBITDA margin improving by 280 basis points.
- Excluding the Middle East, Q2 RevPAR grew 3.3%, demonstrating strong demand and brand attractiveness across other regions, with Europe and the Americas performing particularly well.
- The pipeline remains robust, growing 11.4% year-over-year, with signings up 13%, supporting an acceleration in net unit growth and future fee generation.
- Strategic partnerships with Uber, Amex, Indigo, and H World are set to drive 15-20% annual growth in loyalty and partnership EBITDA, enhancing the ALL loyalty program's reach.
- The company returned EUR541 million to shareholders year-to-date and is on track to exceed its EUR3 billion capital return target ahead of schedule, with an additional EUR500 million buyback planned post-Ennismore deal.
- Luxury & Lifestyle division showed resilience, with RevPAR up 9.4% excluding the Middle East, and the Ennismore transaction with Blackstone and Colony is expected to provide significant cash flexibility.
- The Middle East conflict severely impacted Q2 results, with RevPAR in the region down 29%, particularly in the UAE, which saw a 67% decline in the quarter.
- Net unit growth guidance was lowered to approximately 3.5% for 2026, impacted by delays in Middle East openings, churn in the Germany Rivo portfolio, and closures in China's economy segment.
- FX had a negative 2-point impact on group revenue and 4 points on EBITDA in H1, concentrated in Q1, though expected to turn positive in H2.
- The company faces ongoing challenges in China, with RevPAR in low single-digit negative territory and underperformance in the mid and economy segments, leading to hotel closures.
- M&F revenue growth in Q2 was only 1.6% at constant currency, impacted by lower incentive fees in the Middle East and the shift from management to franchise models.
- The Ennismore stake valuation adjustment resulted in a EUR44 million non-cash charge, reflecting the time value of the earn-out, which weighed on other income and expenses.
- Hotel assets and other EBITDA were negatively impacted by the Middle East conflict and scope effects, with a 7-point negative impact in H1.
Welcome to the Accor half-year 2026 results presentation. Today's conference will be hosted by Mr. Bazin and Martin Giroux, Group CFO. (Operator Instructions)
Now, I will hand the conference over to Mr. Bazin. Please go ahead.
Well, good morning, everyone. Very happy to have you all for the first semester results.
I'll do the conclusion. At the end, I'm going to let the floor to the best of us to Martine as Chief Financial Officer. She's going to guide you through the results and comments, and then we'll go straight conclusion and Q&A. But at least, thank you so much, each of you, to actually being on the phone with us.
Thank you, Sebastien, and good morning, ladies and gentlemen. And again, thank you for attending our earnings call for the first half.
So I will kick off on the financial
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