FRENCH hotel group Accor reported an annual core profit just above market expectations on Thursday, supported by the diversification of its hotel portfolio and the expansion of its loyalty program.
Europe's biggest hotel operator said its earnings before interest, taxes, depreciation and amortization (Ebitda) were 1.20 billion euros ($1.41 billion) last year, compared with 1.12 billion euros in 2024 and a company-compiled analyst consensus of 1.19 billion euros.
"In 2026, we will focus on ... the growth of our network and strengthening partnerships within our [loyalty program], adapting our business model with more franchise agreements in mature markets, and finalizing the sale of our stake in Essendi," finance chief Martine Gerow said during a press call.
Accor said in December it would divest its 30.6-percent stake in Essendi, formerly AccorInvest. It plans to use the proceeds to fund a previously announced 450-million euro share buyback program in 2026, meaning the repurchases will only take place once the deal has been closed.
Accor shares slid 1.2 percent in early trading in Paris, with AlphaValue analyst Yi Zhong saying a smaller contribution from Essendi weighed on the earnings.
"The postponement of share buyback would be another reason for a reservation sentiment, especially since we expect discussions over the Essendi stake sale to take some time," the analyst added.
The operator of brands including Ibis and Novotel said its revenue per available room (RevPAR), one of the industry's main performance indicators, rose 4.2 percent to 76 euros in 2025.
“The rapid integration of artificial intelligence into our digital roadmap and the robustness of our pipeline allow us to accelerate our development and be even more efficient,” Accor CEO Sébastien Bazin said in a statement.
The company launched in February an AI-powered, ChatGPT-based direct booking tool, pitched as a way to reduce the group's dependence on online travel agencies and cut distribution costs.
