Oddo BHF reaffirms its 'outperform' rating on Accor and raises its target price from 46 to 48 euros, ahead of the announcement of first-quarter sales it expects to reach 1197 million euros, driven by solid RevPAR growth (+7.2%).
According to the research firm, Accor is benefiting from the continuing global hotel rebound, a solid financial position and the potential for asset disposals that will enable a significant return to shareholders, as well as from the reorganization by segment.
Oddo BHF also considers that the current valuation still offers good entry points, at 11.6 times 2024 EV/EBITDA, representing a 30% discount to US comparables and a 25% discount to its historical 2018/2019 multiple.
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Accor is the No. 1 European hotel group. Net sales break down by activity as follows:
- operating hotels under management contract (74.7%; HotelServices);
- owned and leased hotel management (25.3%). In addition, the group offers a business of renting luxury private residences, as well as providing digital services to independent hoteliers, concierge services, etc.
At the end of 2023, the group operates a network of 5,584 hotels (821,518 rooms) distributed primerly between luxury and top-range hotels (978 hotels; Raffles, Fairmont, Sofitel, Pullman, MGallery, Swissotel, Grand Mercure, Mövenpick, The Sebel and Rixos names), mid-range hotels (1,732; Novotel, Novotel Suites, Mercure, adagio, Mama Shlter and Tribe), and economy hotels (2,826; ibis, ibis Styles, ibis budget, adagio access, hotelF1, Formule 1, Jo&Joe, Breakfree and Greet).