Research Update: Accor Outlook Revised To Stable On Recovery In RevPar And Improving Credit Metrics; 'BB+' Rating Affirmed

Despite macroeconomic headwinds, we think Accor S.A. is on track to benefit from the continued recovery of leisure travel demand, average daily rates, and recovery witnessed in hospitality sector, as reflected in its September 2022 results. We now expect 2022 revenue to reach €3.6 billion, versus €2.2 billion in 2021, with S&P Global Ratings-adjusted EBITDA of €610 million-€640 million. Our updated forecast assumes that Accor's S&P Global Ratings-adjusted net leverage will remain close to 4.0x in 2022 and gradually decline toward our upgrade threshold of 3.5x over the next two years, assuming resilient trading levels in spite of high inflation and recession risks, assisted by its strong diversification across markets, brands, and segments. Consequently, we revised our outlook on Accor

...- Despite macroeconomic headwinds, we think Accor S.A. is on track to benefit from the continued recovery of leisure travel demand, average daily rates, and recovery witnessed in hospitality sector, as reflected in its September 2022 results. We now expect 2022 revenue to reach 3.6 billion, versus 2.2 billion in 2021, with S&P Global Ratings-adjusted EBITDA of 610 million-640 million. - Our updated forecast assumes that Accor's S&P Global Ratings-adjusted net leverage will remain close to 4.0x in 2022 and gradually decline toward our upgrade threshold of 3.5x over the next two years, assuming resilient trading levels in spite of high inflation and recession risks, assisted by its strong diversification across markets, brands, and segments. - Consequently, we revised our outlook on Accor to stable from negative and affirmed our existing long-term issuer credit rating at '##+'. - Our stable outlook indicates that the company will make financial policy choices regarding share repurchases,...

Research Update