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Accor SA - Stock Quote AC

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Morningstar's Accor SA Stock Analysis

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Economic Moat

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Capital Allocation

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Accor Seeing Demand Recovery Expanding to Urban, International, and Business Travel

Dan Wasiolek Senior Equity Analyst

Business Strategy and Outlook

| Dan Wasiolek |

While the coronavirus and geopolitical conflict present near-term demand headwinds, we expect Accor to expand share in the hotel industry over the next decade as a result of its solid loyalty and exposure to the millennial traveler through its growing lifestyle brands, supporting its intangible brand asset advantage, the source of its narrow moat. As a result, we see Accor posting more than 3% unit growth on average over the next 10 years, well above the roughly 1% long-term industry rate in its core European region (58% of total hotels in 2021). Accor's growing room share is being driven by an increased presence in higher-end luxury/upscale rooms, which were 27% of its total in 2021. This higher luxury presence diversifies Accor from its core economy/midscale exposure, which more directly competes against Airbnb and other alternative accommodations.

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Key Statistics - AC

Accor SA's Company Profile

Business Description

Accor operates 778,000 rooms across over 40 brands addressing the economy through luxury segments, as of Dec. 31, 2021. Ibis (economy scale) is the largest brand (37% of total rooms at the end of 2021), followed by Novotel (14%) and Mercure (15%). FRHI offers additional luxury and North American exposure. After the sale of the majority of HotelInvest (owned assets) in 2018-19, the majority of total EBITDA comes from HotelServices (asset-light). Northern Europe represents 21% of rooms, Southern Europe 23%, Asia-Pacific region 31%, Americas 13%, and India, Middle East, and Africa 12%. Economy and midscale are 73% of rooms.

Contact
82, Rue Henri Farman, Tour Sequana, Issy-les-Moulineaux
Paris, 92130, France
T +33 145388600
Industry Lodging
Most Recent Earnings
Fiscal Year End Dec 31, 2022
Stock Type
Employees 158,604