By Diana Mandia
(Reuters) - Europe's biggest hotel group Accor (EPA:ACCP) on Thursday raised its core profit target for 2023 for the second time this year, citing positive business momentum in all of its markets after another strong post-pandemic summer.
The sector continues to benefit from the leisure travel boom despite inflation and the resurgence of recession fears in Europe.
The operator of brands including Ibis and Novotel said in a statement that hotel demand remained strong between July and September, with revenue per available room (RevPAR), a key industry gauge of performance, jumping by 15% compared with the same period in 2022.
That's above the average estimate of 13% in a company-compiled consensus.
Accor also said third-quarter revenue reached 1.29 billion euros ($1.36 billion), in line with expectations, adding it is seeing the first signs growth is normalising after several quarters of intense recovery, with average prices still high.
In France, Accor's business benefited from the increase in international tourists to Paris, which compensated for weaker domestic tourist numbers. It was also boosted by the Rugby World Cup, particularly in cities where hotel supply is more limited, such as Lille and Nantes, Accor said.
The group, which operates across more than 110 countries, said it sees no risk of the Israeli-Palestinian conflict having a major impact on its activities.
"We are seeing a very low cancellation rate, which is not significant at group level," Chief Executive Officer Martine Gerow said on a call with journalists.
Accor has three hotels in Jerusalem and one in Tel Aviv.
The group now expects core earnings (EBITDA) of between 955 million euros and 985 million euros for 2023, up from a previous forecast of between 930 million euros and 970 million euros, which was already upgraded in July.
It also raised its forecast for growth in RevPAR in 2023 and now expects it to slightly exceed 20%. That was versus a previous estimate at the top end of a 15-20% range.
($1 = 0.9498 euros)
($1 = 0.9500 euros)