A more than positive 2023 and new growth prospects in 2024: this assessment is shared by most of the major players in the global hotel industry, including Marriott, the world's leading group, which is reporting growth in revenue per room of almost 15 % in 2023 compared with 2022, as well as Hilton (+12.6 %), IHG (+16.1%) and Hyatt (+17.0%). Accor reports even higher RevPAR growth (+23 1Q3) with sales in excess of five billion euros. For the first time in its history, the French group has seen its EBITDA exceed one billion euros, Sébastien BazinChairman and CEO of Accor, who said: " During the year, the Group achieved growth in all its segments and geographical areas" .
For their part, the American groups, while retaining room for growth in their domestic markets, are seeing their annual results boosted by international business. Hilton's RevPAR, for example, rose by 7.2% in the United States, but more than 22.5% in Europe and Africa/Middle East. Marriott hotels in North America reported an 8.9 % increase in RevPAR. This compares with growth of 32.61 % for the group's international establishments, driven by the resilience of the European hotel market (+21.8 %), but above all the recovery of the Asian market with +43.2 % for the Asia-Pacific region and +78.6 % in the Greater China region.
Resumption of international and intra-regional travel, revival of air links: then Asia, where tourism has lagged in recent years, tourism is returning to normal levels. With its offer straddling the Asian and European continents, as owner of NH Hotels, the Minor group has recorded growth in its RevPAR of 22% vs 2022, driven as much by Europe (+26%) as by its original Thai market, where revenue per room rose by 73%. Similarly, one of the leading players in the Chinese hotel industry, H World Limited - formerly Huazhu - has seen its RevPAR grow by +43.8% vs 2022.
Of course, leisure customers are supporting hoteliers, even if the "revenge travel" effect that drove demand in the wake of the pandemic is tending to fade. But, and this is a positive point, business travel makes a major contribution to the good overall results. " I was wrong when I said three years ago that we would lose 25% of business travel with the ability to work remotely forever.said Sébastien Bazin during the presentation of Accor's results. We are now 90 % away from 2019 levels. Not only has business travel recovered, but it is growing much faster than expected. Over the next 12 months, we expect to see 8% growth in spending by large companies. But business travel has changed, with fewer regular trips between Seattle and Paris or Singapore, fewer conventions of 500 or 2,000 people, but more small seminars around the world, more SMEs, more bleisure. Business travel is and remains one of the major contributors to Accor's business, as it is to the rest of the world.s other major groups" .
In the last quarter of 2023 alone, Marriott recorded global growth of 7% in revenues generated by visiting business travellers. " Demand from small and medium-sized businesses continues to be very strong. And while large companies are still lagging behind pre-pandemic levels, we continue to see quarter-on-quarter growth in demand." says Group CEO Anthony Capuano.
His counterpart at Hilton, Christopher Nassetta, also noted that strong demand from SMEsDuring the question and answer session following the announcement of the quarterly results, the Chairman of the Board of Directors of the Covid Group discussed the activity of large companies. Overall, attendance was down by around 5 % compared with the pre-Covid period, although not all large companies were in the same boat.
According to Hilton's CEO, " most have returned to, if not exceeded, pre-pandemic levels, with the likely exception of banking, technology and consulting" Christopher Nassetta expects business demand to reach " more normal levels by the end of the year" . This is a positive point for Hilton, especially as the increase in corporate rates is already helping to offset slightly lower occupancy, resulting in higher revenue per room from business travel by 5% vs 2019.
Renewed dynamism for the Business segment
From IHG, RevPAR in the Business segment also exceeded its 2019 level by 3 %This was due to a combination of a 2% drop in occupancy and a 5% rise in the average price. At the same time, the Groups segment recorded RevPAR down 5% on the pre-covid year, with nights down 7% and prices up 3%. However, the fact that the segment turned positive again in the last quarter and the 17% growth in bookings already booked should give us cause for optimism. " Demand really started to pick up in 2023, particularly in the second half of the year, and will continue to do so in 2024 and beyond." says Elie Maalouf, who took over from Keith Barr as head of the IHG Group last summer.
This view is shared by Leeny Oberg, CFO of Marriott, who expects to see the group business " 11 % in 2024 and 12 % in 2025 in the United States" but also by Christopher Nassetta, with Hilton expecting this segment to grow by 16 % in 2024: " Demand is really strong. We expect the continued resurgence of meetings from small companies to conventions and large associations to generatestrong group performance" .
This augurs well for 2024, when hotel groups should be able to rely on the following factors to keep up demand for leisure activities a corporate segment that is once again dynamic. " According to Morgan Stanley, 80 % of companies intend to increase their business travel spending in 2024. In our negotiations with our major customers, we are also seeing a return to growth in this sector." explained Martine Gerow, CFO of the Accor group. For the current year, Hilton, Marriott and Hyatt are forecasting growth in revenue per room of between 2 % and 4% for the former and between 3 % and 5 % for the latter two. For its part, Accor is forecasting annual RevPAR growth of between 3 % and 4 % over the period 2023-2027.
