Accor: 2025 Corp. Rates Up 'Low-to-Mid Single Digits'

Corporate negotiated hotel rates at Accor properties for 2025 increased by "low-to-mid single digits" from 2024 levels, Accor Group CFO Martine Gerow said Thursday. The increase is similar to that realized in 2024, CEO Sébastien Bazin added.

"We don't see any decline in pricing on renegotiating corporate rates with any corporate on any geography," Bazin said.

Meanwhile, the share of Accor's business generated by business travel remains notably lower than it was in years prior to the Covid-19 pandemic, Gerow said.

The executives made their comments at a roundtable discussion with reporters Thursday in New York City.

Gerow said that 2024 "was actually a really good year for managed corporate in terms of pricing in that segment. [For] '25 the negotiations are [ongoing], but we still see price increases." When asked to categorize those increases, she said they were in the "low-to-mid single digits" year over year.

Accor's business mix in 2024 was about 60 percent leisure and 40 percent corporate, the reverse of those numbers years prior, Gerow added. "The part of corporate that has yet to recover is a long-haul international," she said. 

Meanwhile, Bazin said Accor had "no intention whatsoever" to grow its lower-tier brands in the United States, noting the existing footprints of the large U.S. chains. "I think it will be too much of a risk for Accor to deploy those segments within the dominated American market," he said, noting that did not apply to Accor's luxury brands. "That is of course not true for Raffles, not true for Sofitel, not true for Fairmont, which is why we decided to pursue the expansion of those segmentations."