Accor: the share to be reinstated in the CAC 40 index
March 08, 2024 at 03:48 am EST
Share
Euronext announced on Thursday evening that the Accor share would soon be reinstated in the CAC 40 index, which it had left three years ago in the midst of the Covid-19 pandemic.
Accor was removed from the Paris Bourse's benchmark index in 2020, a black year for the hotel group which saw its valuation melt by 25% due to the impact of containment measures on its business.
Since then, the company has returned to historic levels of performance, which last year enabled it to post record results, with EBITDA exceeding one billion euros for the first time in its history.
CEO Sébastien Bazin points out that, following this record year, the group has enjoyed a "solid" start to 2024, buoyed by an increase in occupancy rates and strong demand.
The share price of the world's number one player in the sector, excluding the USA and China, has rebounded by 85% from its lows reached in autumn 2022, and now has a market capitalization of close to 10 billion euros.
The hotel group will take the place of rail equipment manufacturer Alstom, which is to be delisted from the Paris Bourse's flagship index after seeing its share price fall by 49% over the last six months, giving it a valuation of some 4.6 billion euros.
The changes resulting from this quarterly review of the CAC family will take effect on Friday March 15.
The market greeted Accor's return to the CAC on Friday morning, with the stock gaining 0.2% in early trading. Alstom shares lost around 1%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
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).