Performance of Accor, IHG and Whitbread Reflect State of Europe's Hotel Industry
Accor, IHG Portfolios Buoyed by Growth in Americas
Hotels across Europe generally have struggled more than those in other regions, particularly the Americas, to recover to pre-pandemic performance levels due to restrictions on travel that lingered for much of 2022 and muted inbound international tourism.
Hotels across Europe generally have struggled more than those in other regions, particularly the Americas, to recover to pre-pandemic performance levels due to restrictions on travel that lingered for much of 2022 and muted inbound international tourism.
But the latest quarterly results from Europe's three largest publicly listed hotel firms — Accor, IHG Hotels & Resorts and Whitbread PLC, owner of the Premier Inn brand — show performance very near to 2019 levels, and the CEOs of each company have expressed optimism that the upward trend will continue in 2023.
One factor expected to bring American tourists back to Europe is a discount on the Euro compared to the U.S. dollar. European hoteliers also hope for the ease or elimination of restrictions on Chinese tourism in 2023, which would be a big boon for the industry.
Europe's hotel rooms are also expected to benefit from higher demand from business travelers.
Results for IHG and Accor have been skewed to some extent due to notable exposure in the Americas, where the recovery has been most prominent.
Whitbread, though, has essentially two markets — the United Kingdom and, increasingly, Germany, which was one of the last European countries to emerge from tourism lockdowns.