Story
Accor Cuts Full-Year Growth Forecast Amid Slowing Q2 Performance
Summary
The French hotel operator reported higher-than-expected first-half revenue and profit but lowered its full-year forecast for network expansion after a key performance metric declined in the second quarter.
Accor SA (EPA:AC) reported first-half 2026 results that beat analyst expectations for revenue and earnings, but the company lowered its full-year guidance for net unit growth after key performance metrics slowed in the second quarter.
First-Half Results Beat Expectations
The French hotel group posted first-half revenue of €2,760 million, surpassing consensus estimates of €2,674 million, according to its earnings report released Thursday. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €563 million, also slightly ahead of the €556 million forecast by analysts.
Accor's free cash flow showed significant improvement, reaching €194 million compared to €136 million in the first half of 2025. The company attributed the year-over-year increase to lower capital expenditure and taxes.
Signs of a Q2 Slowdown
Despite the strong first-half figures, second-quarter results pointed to softening demand. Revenue per available room (RevPAR), a critical industry metric, declined 0.2% year-over-year, missing analyst expectations for 0.5% growth. This marks a sharp deceleration from the 5.1% RevPAR growth reported in the first quarter.
AdThe decline in Q2 RevPAR was driven by a 0.9 percentage point drop in occupancy rates, which offset a 1.1% increase in average daily rates. Net unit growth, which measures the expansion of the company's hotel network, also slowed to 3.2% in the quarter, below the 3.5% anticipated.
Revised Full-Year Outlook
Reflecting the second-quarter slowdown, Accor has revised its outlook for the full year 2026. The company now expects net unit growth of 3.5%, a reduction from its previous forecast of "more than 4%".
The group projects full-year recurring EBITDA to be between €1,260 million and €1,285 million, which would represent 5% to 7% growth over the prior year. Accor also guided for full-year RevPAR growth of 2% to 2.5%. Alongside the results, the company announced the launch of a second €225 million tranche of its share buyback program.
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