Accor reported softness in the North America and Asia-Pacific
regions during its Q1 earnings call, but the company reported a 1.6% increase
in revenue per available room (RevPAR) on the strength of its Europe hotels.
Accor's Asia-Pacific RevPAR was down 0.6% for the quarter,
due primarily to weakness in China, where RevPAR declined 3%, and slowing
Chinese outbound travel to countries like Thailand, Vietnam, Malaysia and
Australia. RevPAR in Australia slipped 1.6%.
In North America, Central America & the Caribbean, RevPAR
decreased 2.1%. The Middle East & Africa region saw RevPAR decline 0.7%.
Despite relatively modest 0.9% growth in the U.K., Accor
achieved 3.3% growth in Europe, bolstered by gains in France (2.7%), Germany (3.4%)
and the Iberian Peninsula (8.8%). South America RevPAR grew 11.2%.
In a call with investors, Accor deputy CEO Jean-Jacques
Morin said geopolitical issues have contributed to economic uncertainty in China,
the U.S. and the U.K.
"In terms of deceleration, nobody knows where the
relationship between China and the U.S. may go," said Morin. "It
looks like the discussions are moving ahead, but it's difficult to have a
crystal ball with that one. And then the other [big issue] is Brexit. Nobody
really knows where this Brexit thing is going. Brexit did have some negative
impact in the U.K., and the question there is whether a solution will be found
to resolve that."
In the first quarter, Accor's revenue rose 34.2%, to 987
million euros (about $1.11 billion).