Accor: Oddo BHF optimistic on ReVPAR in France

(CercleFinance.com) - Broker Oddo BHF maintains its buy rating advice on share of Accor hotel group, highlighting the sound resistance of bookings in France.
The broker maintains its target price at 54 euros, meaning upside potential of over 40%.

Analysts base their stance on the initial estimates of ReVPAR (revenue per room, a key indicator in the sector) in France provided by the firm OlaKala: they "come in as very encouraging, at +6.5%, despite a difficult comparison basis (+11.7% in November 2017). In detail, the increase in RevPAR is driven by the rise in average prices (+5.6%), while occupancy rates have stabilised (+0.6 point), the broker says in its report, considering that the area Ile-de-France still largely outpaces the rest of France.

The “gilets jaunes” movement seems to be having just a limited impact on the hotel business at this stage, Oddo BHF says, even though this situation could change in the event of a stalemate and/or depending on its duration, which would disrupt demand - particularly from international clients.

Oddo BHF points out that Accor is significantly exposed to the French market, which accounts for around 22% of its operating income (two-thirds of which is in Paris). Analysts therefore confirm their forecasts, including 5.3% growth in Accor's RevPAR in 2018, with 6.5% in France.

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