Hotel rebound as Marriott and Accor deliver third quarter results

Two of the largest hotel groups in the world have delivered their third quarter results with the numbers signalling a clear pick-up in demand.

Accor saw revenue surge 79 per cent to €589 million compared with the same period last year as leisure demand increased across Europe, the Middle East and the Americas.

Business travel and MICE activity was also up in September and October.

Sébastien Bazin, Chairman and CEO of Accor, said this trend is expected to continue until the end of the year.

“With this rebound, our vision of augmented hospitality to serve our guests beyond their hotel rooms, has been confirmed with the acceleration of lifestyle & entertainment activities and takes on its full meaning,” he said.

“Our renewed winning spirit, combined with strict financial discipline, are the pillars upon which we will continue to improve our quarter-on-quarter performance.”

While RevPAR increased by 20 percentage points since the second quarter globally, the lockdowns and border restrictions in Australia saw Pacific RevPAR down 56 per cent. However, that is expected to improve in the fourth quarter now borders are reopening.

Marriott International also reported a much improved revenue figure in the third quarter compared to last year, posting an operating income of US$545 million against last year’s US$252 million.

Reported net income totalled US$220 million in the 2021 third quarter, compared to 2020 third quarter reported net income of US$100 million.

RevPAR increased 118 per cent worldwide compared with the same period last year with the strongest rebound in the North American markets.

“We were pleased to see continued meaningful improvement in global trends in the third quarter, despite the impact of the Delta variant of Covid-19 during the second half of the quarter,” said Anthony Capuano, chief executive of Marriott International.

“For the quarter, worldwide RevPAR was down 26 per cent compared to the 2019 third quarter, a significant improvement from the second quarter RevPAR decline of 44 per cent compared to the same quarter in 2019.

“Third quarter occupancy topped 58 per cent, driven largely by continued strength in leisure demand.”