Accor Earnings: Robust Travel Demand and Diversified Portfolio Lift Top Line; Shares Fairly Priced

We believe the strength of narrow-moat Accor's diversified portfolio was reflected in its first-quarter 2024 sales update. Despite lapping a tough comparison (up 57% in the same period last year), revenue per available room (revPAR) grew 8% on a like-for-like basis, driven by positive pricing and volume. Less constructively, management maintained its 3%-4% average annual revPAR and unit growth targets (2023-27), implying sequential deceleration for the remainder of the year. The full-year guidance squares with our prior 2024 revPAR forecast, which was based on our positive near-term outlook on both business travel and leisure excursions.