Accor Opens 48 Hotels but UAE Slowdown Steals the Spotlight

Accor reported a solid start to 2026, but its results showed growing pressure in the United Arab Emirates.

The French hotel group said first-quarter revenue reached €1.31 billion ($1.53 billion), up 2.3 percent at constant currency.

Global RevPAR increased 5.1 percent. In the UAE, however, RevPAR fell 9 percent.

Accor said the Middle East conflict began affecting activity more clearly from mid-March. Nearby markets were more resilient, with Saudi Arabia and Egypt still posting RevPAR growth during the quarter.

The profit protection plan is a safety measure

Accor has activated a profit protection plan to limit the impact of weaker demand on 2026 earnings. The company has not said how much it expects to save, but the plan is focused on protecting margins through tighter cost control and more cautious investment in weaker markets.

Management says demand outside the most affected Gulf markets remains stable. Still, the move shows that Accor is not waiting for the slowdown to become larger before acting. For hotels, weaker occupancy can quickly affect room revenue, restaurant sales, and owner confidence.

Accor’s wider business is still expanding

The UAE weakness did not stop Accor’s overall growth. The group opened 48 hotels in the first quarter, adding more than 6,700 rooms. By the end of March, Accor had 5,815 hotels worldwide and a pipeline of 260,000 rooms across 1,545 hotels.

The company’s management and franchise revenue rose 8.3 percent to €332 million ($388 million). This part of the business is important because Accor is shifting toward a more asset-light model.

Accor’s plan reflects wider pressure on travel profits

The company says its 2026 growth story remains intact, while the profit protection plan gives it more flexibility if the market becomes harder.

Accor’s warning also fits a wider pattern across the travel industry. TUI cut its profit expectations after the Iran war disrupted cruises, regional holidays, and fuel planning, showing that the impact is spreading beyond airlines into tour operators and hospitality-linked businesses.

Accor’s caution also comes as the company continues to reshape its business around a more asset-light model. Accor agreed to sell its remaining stake in Essendi for up to €975 million ($1.1 billion), while keeping the hotels under Accor brands through long-term franchise agreements.

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