Accor says Middle East conflict hit Q2 room revenue, Dubai returns to growth
Accor's Q2 Performance and Regional Impacts
By Alexander Gudbrandsen and Ronan Corcoran
Middle East Conflict and Revenue Impact
July 30 (Reuters) - French hotel group Accor said on Thursday conflict in the Middle East weighed on second-quarter room revenue by hurting demand in the United Arab Emirates, although business elsewhere remained resilient and Dubai returned to growth in July.
RevPAR Metrics and Regional Breakdown
Revenue per available room (RevPAR), a key industry metric, fell 0.2% year-on-year in the second quarter. Excluding the Middle East, RevPAR rose 4.6%, the company said.
UAE Occupancy and Dubai's Recovery
The Middle East accounted for about 8% of Accor's room portfolio at the end of 2025. Chief Financial Officer Martine Gerow told Reuters occupancy rates in the UAE improved significantly during the quarter, with Dubai returning to year-on-year growth in July, although some hotels in the country remain closed.
Financial Results and Outlook
Despite the regional disruption, first-half recurring EBITDA rose 6.5% at constant currency to 563 million euros ($645.48 million), supported by cost controls and growth in Accor's hotel network.
Accor said it expects full-year recurring EBITDA of 1.26 billion euros to 1.285 billion euros.
Operating and Net Profit Changes
Operating profit fell to 294 million euros in the first half from 399 million euros a year earlier, while net profit dropped to 127 million euros from 258 million euros.
Earnings were weighed down by charges totalling 113 million euros, including a 44 million euro impairment related to Accor's stake in Essendi.
Other Business Drivers
Impact of Weather on Demand
Gerow said exceptionally hot weather across Europe had boosted demand in some cities as travellers sought air-conditioned accommodation.
AI and Productivity Gains
Separately, Accor said it was seeing productivity gains from artificial-intelligence tools used in areas such as order-taking and call handling.
Cost Reduction Potential
Chief Executive Sebastien Bazin told analysts AI could help reduce hotel owners' costs by 15% to 30% over the next 12 to 18 months.
($1 = 0.8722 euros)
(Reporting by Ronan Corcoran and Alexander Klyve Gudbrandsen in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)
