RIYADH: French hotel group Accor has reported an annual core ​profit just above market expectations, supported by the diversification of its portfolio and the expansion of its loyalty program.

The group stated that its earnings before interest, taxes, depreciation, and amortization were €1.20 billion ($1.41 billion) last year, compared with €1.12 billion in 2024 and a company-compiled analyst consensus of €‌1.19 billion.

According to a press statement, the Middle East, Africa and Asia-Pacific region posted a 7.6 percent increase in revenue per available room, a key industry metric, compared with the fourth quarter of 2024.

This growth was driven solely by prices, while the slight decline in occupancy rates was attributable to China, which continued to weigh on the region's performance.

In the Middle East-Africa region, which accounts for 26 percent of the region's room revenue, all major destinations in the region, including Saudi Arabia and the UAE, recorded double-digit RevPAR growth.

In Saudi Arabia, Accor has operated for more than 30 years and currently manages 44 hotels. The group plans to add more than 45 properties in the Kingdom by 2030, according to company figures.

Over the past five years, Accor’s pipeline has grown faster in value than in the number of projects, enhancing the overall quality of its global asset base.

“In ‌2026, we will focus on ​the ‌growth of our ​network and strengthening partnerships within our loyalty program, adapting our business model with more franchise agreements in mature markets, and finalizing the sale of our stake in Essendi,” finance chief Martine Gerow said during a press call, according to Reuters.

Accor had said in December it would divest its 30.6 percent stake in Essendi, formerly AccorInvest. It plans to use the ‌proceeds to fund a €450-million ‌share buyback program in 2026.

As of the end of September, the group had a hotel portfolio of 5,760 properties totaling 859,830 rooms, along with a development pipeline of more than 1,453 hotels representing over 250,000 rooms.

The operator of brands including Ibis and Novotel said total RevPAR rose 4.2 percent to €76 in 2025.

“The rapid integration of artificial intelligence into our digital roadmap and the robustness of our pipeline allow us ‌to accelerate our development and be even more efficient,” Accor CEO Sebastien Bazin said in a statement.

In February, the company launched an AI-powered, ChatGPT-based direct booking tool, pitched as a way to reduce the group’s dependence on online travel agencies and cut distribution costs.

In December, France and India agreed to halve dividend withholding taxes on payments from Indian subsidiaries to French parent companies, which could have implications for large French portfolio investors and firms like Accor, Pernod Ricard, or L’Oreal.

“Today, India represents roughly 70 hotels and slightly less than ​1 percent of our ​business volume, so it remains a nascent market,” Gerow said.

The growth of Accor’s brands across the Kingdom’s gigaprojects underscores the group’s dedication to the Saudi market. These include flagship developments such as Raffles Trojena, Fairmont The Red Sea, and Faena The Red Sea, as well as Mantis Al Baha, and Ennismore properties like SLS The Red Sea and Morgans Originals Trojena.