Robust Accor half-year hotel performance dampened by continued Middle East declines
Robust Accor half-year hotel performance dampened by continued Middle East declines
Accor’s hotel count nearing 7,500, including development pipeline
One notable hotel Accor opened this summer is the 102-room Bel Hôtel Oléron Thalassa & Spa MGallery Collection on the west coast of France. (Accor)
https://www.costar.com/article/1412264295/robust-accor-half-year-hotel-performance-dampened-by-continued-middle-east-declines
Hot weather across Europe saw many of Accor's hotels throughout the continent perform well, but its portfolio in the Middle East saw continued declines from the ongoing conflict in the region.
The French hotel group said room revenue in the United Arab Emirates was “significantly impacted” in the first part of the second quarter but that Dubai had returned to close to full health as that period came to an end. Elsewhere in the Middle East, however, Accor's hotels are still performing well.
“In the Middle East, RevPAR was down 29% driven by the UAE, which was down 67% … with other countries, which is Egypt and Saudi Arabia, namely, posted positive RevPAR growth in the mid-single digits,” Martine Gerow, Accor's group chief finance officer, said during the company's first-half 2026 earnings conference call.
She added that the strength of Accor's global hotel portfolio is making up for the softness in the company's Middle East region.
“Following a very strong start to the year, the situation in the Middle East has impacted our trading in the second quarter, but the performance in other regions has remained very solid,” Gerow said.
Accor's global revenue per available room increased 2.2% year over year, but if its Middle Eastern portfolio was excluded, global RevPAR increased in the same period by 4.6%.
Accor Chairman and CEO Sébastien Bazin said the lack of visibility in hotel bookings in the Middle East is a hindrance. He added that if the U.S.-Iran war finished by the end of September or even in the middle of October, that would be sufficient time given shorter booking lead times to provide Accor with a very robust November and December, months in which the region's tourism market historically does very well.
Gerow said Accor “activated in March a (UAE) profit-protection plan [that] has enabled us to largely offset the impact of the conflict and deliver a very steady set of results,” she added, stating that will consist of a starting figure of €40 million, rising to — depending on the full rate of recovery in the Middle East — €70 million.
Accor executives said the company's full-year outlook would close a little below expected numbers, with overall room count growth down from an expected 4% increase to a little less than 3.5% growth.
In the first half of the year, Accor opened 109 hotels and approximately 14,000 rooms, an increase of 3.2% year over year.
At the end of the first six months of 2026, Accor had a portfolio of 5,835 hotels and 881,928 rooms. Its pipeline is 1,595 hotels and approximately 268,000 rooms. If all those hotels open, the overall hotel count will just be a few properties short of 7,500.
Accor's asset strategy
The results came a few days after Accor announced its full exit from its asset holdings in Essendi, formerly AccorInvest. The move is the final chapter in the decade-plus-long transition from Accor being asset-heavy in hotel ownership to almost completely asset-light.
A joint venture between private equity firms Blackstone and Colony IM acquired the remaining Accor hotels in Essendi for €975 million ($1.1 billion), “including €675 million to be received on closing of the transaction and an earn-out of up to €300 million.”
“The signing of a definitive binding agreement with leading investors for the disposal of our stake in Essendi is an important milestone, completing Accor’s transformation into a resolutely asset-light model that is simple, clear and predictable,” Bazin said.
Accor will soon make a final decision in terms of a potential initial public offering of its joint-venture in Ennismore, Bazin added.
That will be a “game-changer in terms of accelerating the pace of Ennismore growth, visibility, credibility and probably the ability to penetrate great markets such as America,” Bazin added.
Accor's earnings before interest, taxes, depreciation and amortization increased 6.5% to €563 million ($642 million).
Discipline around operations costs will help control some of the company's headwinds, Bazin said. He added Accor's outlook anticipates full-year EBITDA to be between €1.26 billion to €1.285 billion, or growth of between 5% to 7%.
Bazin said Accor has the ability to “navigate through the storms” and that the firm has “enormous granularity on its costs, we have an enormous control on operating metrics all over the different geographies … which permits us to navigate, to evaluate, to get into action to build.”
Gerow said the firm is on track to return €3 billion to shareholders, with its latest €225 million tranche announced during the call and, starting in the fourth quarter of the year, a further €500 million from proceeds from the Essendi sale.
As of press time, Accor’s stock was trading on the Euronext Stock Exchange at €46.26 per share, down 3.9% year to date. Euronext was up 5.58% over the same period.
Events, convention-related demand drive record results for MGM Resorts in second quarter
Special committee evaluating acquisition bid from People Inc.
MGM Resorts International's Cosmopolitan of Las Vegas will undergo a rooms remodel project in the near future. (CoStar)
https://www.costar.com/article/2382836/events-convention-related-demand-drive-record-results-for-mgm-resorts-in-second-quarter
By Bryan Wroten
MGM Resorts International saw record performance across its global hotel portfolio during the second quarter, and it made progress on turning around the value narrative at its Las Vegas properties.
During the company’s earnings call, MGM Resorts President and CEO Bill Hornbuckle addressed the question on everyone’s mind: What’s the latest about the purchase offer from Barry Diller and his company, People Inc.?
MGM Resorts’ board of directors has formed a special committee comprising independent directors who have no affiliation with Barry Diller, People Inc. or the proposed transaction, Hornbuckle said.
“This committee continues to evaluate the proposed transaction in consultation with independent outside advisers,” he said. “I'm confident our board will pursue the course of action that's in the best interest of the company and our shareholders. I don't have anything more to share at this time.”
Las Vegas strength
MGM Resorts achieved record second-quarter consolidated net revenue, driven by a second consecutive quarter of year-over-year revenue growth from its Las Vegas Strip resorts, Hornbuckle said. The company’s regional properties also had their all-time best same-store quarterly revenue.
“Revenue for Las Vegas was bolstered by a solid underlying base of group and convention business at MGM Resorts and aided by strong attendance at events around town, ranging from BTS to UFC to a deep playoff run in the Stanley Cup by our very own Vegas Golden Knights,” he said.
Group and convention business carried on the momentum from the first quarter for MGM Resorts, delivering a 20% room mix in the second quarter and keeping on pace for the market segment to represent 20% of the room mix for the full year.
April and May were strong — May exceptionally so — due to events and other activities, Hornbuckle said. June was more challenged, likely due to the summer heat, but July demand picked back up.
Demand came from a diverse customer mix that included technology and hospitality corporate groups as well as top business-to-business trade shows and professional association meetings, he said. It was the highest second-quarter convention average daily rate and catering and banquet revenue in the company’s history.
MGM Resorts’ all-inclusive experience package has sustained solid momentum since its launch four months ago, Hornbuckle said. The offer generated more than 30,000 room nights, and it helped stabilize occupancy at the Luxor and Excalibur properties. By the end of the second quarter, nearly half of the guests who booked the offer were first-time visitors to MGM Resorts’ properties.
“The initiative has supported occupancies and forward bookings at Luxor and Excalibur and importantly turned the value narrative into a positive story,” he said.
The Las Vegas market continues to bring new experiences to guests, Hornbuckle said. In November, the city will host the Players Era tournament over two weeks at the Michelob Ultra Arena at Mandalay Bay and the T-Mobile Arena. It brings 24 top collegiate men's basketball programs from multiple conferences together, including four of the last five national championship-winning teams, for a bracket-style tournament to be televised on ESPN’s networks.
“From the all-inclusive experiences to the Players Era tournament, the spectrum of experiences we have created aligns with prevailing consumer trends, bridging the more deliberate spending patterns of value-conscious guests with a broadening demand for our premium live experiences,” he said.
Regional update
MGM Resorts’ regional operations saw solid performance through the second quarter, resulting in an all-time best revenue quarter on a same-store basis, Hornbuckle said.
The company will continue to make targeted capital investments through the portfolio, which includes enhancing its premium lounge offerings at both the Beau Rivage and Borgata properties and a room remodel at the Borgata.
The company’s properties through MGM China are still outperforming the market, Hornbuckle said. They’ve maintained market share of 16.4%, a sequential full-percentage-point increase. The World Cup temporarily affected June volumes in Macau, however.
“Our confidence is reinforced by the immediate and encouraging rebound in volumes observed post-tournament throughout the month of July,” he said.
The construction of MGM Resorts’ integrated resort in Osaka, Japan, is meeting milestones on a timely basis as it moves closer to its scheduled 2030 opening, Hornbuckle said. More than 60% of the foundation piles are completed, and above ground, the main structure is taking shape with ongoing concrete placement and structural steel fabrication.
As of press time, MGM Resorts' stock was trading at $45.44 per share, up 24.5% year to date. The NYSE Composite Index was up 7.9% for the same period.
The 15 Best Things to Do in London in 2026 (and Top Things to Avoid)
IakovKalinin/iStock
https://www.fodors.com/world/europe/england/london/experiences/news/photos/20-ultimate-things-to-do-in-london
The best things to do—and the top things to avoid—in London. Plus, the best hotels, restaurants, and tips for a memorable vacation. All curated by a trusted Fodor's writer based in the British capital.
There are over 9 million people in London, and I’m proud to be one of them. As a first-generation Brit, I took on a tour guide role from a very young age, navigating the West End independently before I was even a teen. I’ve lived North-West, worked all over Central, and now reside in East London…and I’ve partied in every pocket in between. Now, I don’t have the stamina; I write guidebooks for people who do.
Think of me as a trusted friend you haven’t yet met, a face on social media you ping for local intel but block after getting what you want (hey, I don’t mind!). I’ll tell you which weekend markets to visit, help you avoid crap high teas, and let you tick off greats away from loop sightseeing bus stops. In short, here’s how to experience London like a seasoned queen.
RELATED TRAVEL GUIDES
If you’re traveling throughout England, get our expert recommendations for the best things to do in Manchester and the best things to do in Birmingham.
PART III
PHOTO: COURTESY OF OLLE
21 OF 26
Must-Try Restaurants in London: Olle
WHERE: Soho, Central London
You know the Korean BBQ is darn good when the who’s who of K-Pop put a pin on it each time they touch down in London town. Members of BTS, Blackpink, Twice, NCT Dream and Ateez are just some of the many A-List names that have sizzled meats at Olle and then scribbled their names on their walls in adoration. But this family-owned, second-generation restaurant is more than a meaty grill. Some of my favorite other menu items include Kimchi Jeon pancakes, their sweet and spicy Korean fried chicken, and any of the mandu dumplings…washed down with plenty of soju.
PHOTO: COURTESY OF ALTITUDE LIFESTYLE
22 OF 26
The Best Budget Hotel: Sunborn London
WHERE: Custom House, East London
An affordable yacht stay in Greater London? Yes and yes! Sunborn London is a little bit out of the way, permanently docked at the Royal Victoria Docks in East London, but thanks to the new(ish) Elizabeth tube line, it’s only a 17-minute ride to Tottenham Court Road, and then you’re bang in the middle of the city. Absolutely worth it for the huge savings. The rooms are cabin-style yet surprisingly spacious, and some have private balconies overlooking the O2 arena. Those impressive views extend to the yacht hotel’s signature restaurant, Land’s End, and the bar with an outdoor terrace. Afternoon tea is just £40 pp, which, again, is excellent value. For the best room rates, be sure to avoid event days at the nearby Excel London (a large exhibition and conference center), when all room prices in the surrounding area spike.
Prices start at £126 a night.
PHOTO: COURTESY OF THE SHEPHERD MAYFAIR
23 OF 26
The Best Boutique Hotel: The Shepherd Mayfair
WHERE: Mayfair, Central London
All eyes are on The Shepherd right now, 2026’s most anticipated new opening. But this isn’t your typical flashy Mayfair hangout; rather, a mansion of quiet luxury and real quality over photogenics. There are 82 gorgeous guest rooms and suites arranged over six floors, soundproofed as a sanctuary where you can pluck a range of Miamo skincare products from your room minibar (!) to enjoy in the deep soaking bathtubs. Downstairs, the hotel operates a chic modern-European brasserie, a casual all-day lounge, and a sexy late-night cocktail bar inspired by Mayfair’s original drinking rooms of the 1960s.
Prices start at £500 a night.
PHOTO: THE LANESBOROUGH
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The Best Luxury Hotel: The Lanesborough
WHERE: Hyde Park, Central London
A Fodor’s Finest hotel and the place where I encountered the world’s most pampered cat, if I were ever to strike it rich, I’d reside in The Lanesborough. This former mansion of Viscount Lanesborough is pure neo-classical opulence on Hyde Park corner, with every room a fairytale of canopied beds and Rennaissance art. There are no coffee machines in sight since your private butler will make perfect brews fresh any time of day or night. Amenities span an upscale British restaurant, a cocktail bar, and a glittering underground spa facility. If you’ve ever wondered what it feels like to be royalty, this is probably as close as it gets.
Prices start at £923 a night.
PHOTO: COURTESY AIRBNB
25 OF 26
The Best AirBnbs in London: Art-Filled Flat in Earl’s Court
WHERE: Earl’s Court, West London
This beautifully outfitted 1-bedroom apartment is situated in Nevern Square, strolling distance from the museums of South Ken and the Royal Albert Hall, and Holland Park, in my opinion, one of the prettiest parks in town. It has a balcony overlooking a garden square, and the interiors are filled with custom-made furniture and collectables from all over the world. The living and dining rooms are double-height, allowing for a mezzanine bedroom with a king-sized bed. Add the pull-out sofa in the living room, and this Airbnb comfortably sleeps a family of three.
Prices start at £420 a night.
PHOTO: BRASILNUT1/ISTOCK
26 OF 26
Things to Know About London
The public transport system is the best way to get around town, and you’ll need to pay via an Oyster card or a contactless credit card. In some areas, like the West End, walking may even be quicker than the tube.
Whilst it doesn’t rain in London anywhere near as much as you’d think (Houston, New Orleans, and Atlanta get double the annual rainfall), the weather can be unpredictable, and light drizzle is common, so do pack accordingly.
Finally, please stop tipping in Europe—doing so is disrespectful of our local customs. Businesses here are expected to pay staff a fair wage, and there is a service charge added to restaurant bills, which customers may remove in the event of poor service. Honestly, most Brits think tipping in America is ridiculous. Good customer treatment is standard practice, so you shouldn’t feel indebted for receiving it.
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