Welcome to the Accor Q3 2025 revenue presentation. Today's conference will be hosted by Martine Gerow, Group CFO. For the first part of the conference, the participants will be on listen-only mode. During the questions and answers session, participants are able to ask questions by dialing #KEY5 on their telephone keypad. Now, I will hand the conference over to the speakers. Please go ahead.
Thank you, and good evening, everyone, and thank you for joining Accor's third quarter trading update call. Without further ado, I will start with the key highlights on slide three of the presentation. In an environment which continues to evolve, we have made solid strides since our last call towards, one, accelerating the network growth and, two, mitigating the impact of FX, which leads us to upgrade our EBITDA guidance by two points. Starting with RevPAR, despite a challenging comp base in the ENA region in the month of July and August, Q3 RevPAR, like-for-like, remained positive at +0.8%, equally driven by price and occupancy. Softness in France due to the Olympic baseline and Germany was more than offset by solid growth in other geographies. We were pleased to see the rebound in September with the 3% RevPAR growth, which was driven by ENA, which returned to positive growth.
Other geographies remain very solid. As we anticipated, NAG accelerated to 2.5% on a LTM basis, and our pipeline remains very healthy with a growth rate of 8.2% over the same period, benefiting from a very robust flow of signings. At constant currency, our management and franchise revenue increased by 3.1%, outpacing RevPAR growth in the quarter. Group revenue overall was flat versus prior year at constant currency due to some asset disposal in the quarter and the Olympics value-in-kind service revenue in prior year. Those two together impacted revenue by about three points in the quarter. As highlighted during our July call, the euro appreciated both rapidly and significantly against most currencies and, in particular, against the U.S. dollar. As a reminder, our FX exposure is predominantly in currencies which move with the U.S. dollar.
What we noted in the third quarter is that the euro was actually broadly stable versus other currency. As a result, we still expect to have a negative full-year impact of EUR 60 million on EBITDA due to FX. Now, against this backdrop, we secured profit protection measures of more than EUR 20 million in the second half, which, combined with a confident outlook for the fourth quarter, leads us to upgrade our full-year EBITDA guidance. Therefore, recurring EBITDA guidance at constant currency is increased by two points from 9%- 10% growth to 11%- 12% growth for the fiscal year 2025. Again, at reported rates, recurring EBITDA is expected to be impacted by a negative FX impact of EUR 60 million.
As a point of update, we have completed the second tranche of the 2025 EUR 440 million share buyback program, driving the total shareholder return since the beginning of the year to EUR 743 million, which is roughly 6.5% of the market cap at the beginning of the year. I am pleased to announce that we have decided to launch a new tranche of share buyback of EUR 100 million during the fourth quarter of 2025 to take advantage of the current market conditions. Let's now turn to the RevPAR for the third quarter on slide four. Starting with PM&E, which posted a third quarter RevPAR decrease of 1.1% versus 2024. Occupancy was actually slightly up to 71% in the quarter with sustained demand. Prices were down, and that's really what drove the RevPAR decline in PM&E, and that is really reflective of the high Olympic comp base in ENA.
In ENA, RevPAR was down 4.6%, driven by France primarily. Demand was sustained with occupancy reaching 74% in the third quarter, which is a one-point gain versus prior year, but obviously less constrained stays in France than during the Olympics period resulted in the rate decrease which you see here. In France, again, RevPAR was basically mechanically down high single digit from last year, driven by Paris. Provence RevPAR was slightly negative over the same period. September saw a rebound from July and August, although the activity remained soft in a context of political uncertainty, which has an impact on business confidence. In the U.K., RevPAR rebounded from the second quarter and was up mid-single digit both in London and the regions thanks to what was a supportive leisure and corporate event calendar.
In Germany, which is a market primarily driven by business demand, RevPAR was down high single digit in the third quarter as the country is facing persistent economic challenges. Sequentially, September did improve from July and August, but still negative, and October is expected to be slightly improved due to a more supportive fair activity calendar. Turning to MEA APAC, where the RevPAR in the third quarter was up 2.7%, primarily driven by Middle East and Pacific regions. China, still negative high single digit RevPAR growth, which continues to weigh on the region. If we exclude China, MEA APAC RevPAR is up 5.3% in the third quarter, driven by price. Starting with the Middle East, the region rebounded strongly, posting a low double-digit RevPAR driven by solid UAE as well as Saudi Arabia, which had a very strong pilgrimage season.
Southeast Asia flattish due to security concerns in Thailand, as well as the worsening of travel conditions in Indonesia. Pacific RevPAR strengthened again in the third quarter with mid-single digit growth, and China, which was still negative high single digit growth in the quarter, actually improved sequentially during the quarter with a better September RevPAR, still negative, but at a much lower rate than July and August. America continues to post solid growth with Q3 RevPAR up 7% versus prior year, primarily driven by Brazil with very solid pricing and corporate demand. If we turn now to luxury and lifestyle on the right side, RevPAR growth was a solid 5% versus prior year, driven by pricing for 2/3 and occupancy for 1/3. Occupancy was up one point in the period. Luxury RevPAR was 4.3%, driven by both price and occupancy, with solid momentum across all brands, particularly Fairmont and Raffles.
Lifestyle posted a very solid 6.9% RevPAR growth, driven by price primarily with some occupancy gain. Despite geopolitical tensions, resorts in Turkey and the Middle East had, again, a very strong quarter with RevPAR up in the low teens. Moving on to slide five, which breaks down our hotel portfolio and pipeline by division. At group level, net unit growth on an LTM basis reached 2.5%, which is an acceleration from June and in line with our expectation. Pipeline growth LTM is 8.2% versus prior year, which supports further acceleration. Starting with PME on the left, NAG on a last-twelve-month basis was up 2%, again accelerating from H1 as we expected, as we have lapped over the opening of the Daiwa portfolio in the second quarter of 2024. We expect PME to continue to accelerate NAG in the fourth quarter.
Notably, we have two large hotel openings planned in the fourth quarter: the Handwritten in Las Vegas and the Ibis Budget Heidewaht Tower. PME pipeline also very healthy, 194,000 rooms, up 9.5% over the last 12 months and representing 26% of the portfolio. Moving to the right, LNL network growth also accelerated, reaching 5.3% on an LTM basis with a more favorable phasing of opening and churn than was the case in the first half. The pipeline was up 4%, with the pipeline representing 44% of the existing network, which obviously provides solid visibility for the future growth of NAG. Among the most notable openings planned in the fourth quarter, we have Delano in New York City, Fairmont in Hanoi, and Hoxton in Dublin. Now I'll turn to page six.
We have decided to provide greater visibility into services to owner revenue and EBITDA by breaking what is known as STO down into two components, which you see here on page six. These two components are reimbursed costs on one hand on the right side and SMDL, which stands for Sales, Marketing, Distribution, and Loyalty on the left side. I'll start with SMDL on the left. SMDL regroups activity, which are expected to grow at a faster pace and generate at least a 6% margin over the midterm. They can be further divided into two blocks: sales and marketing, where activities are funded by fees received from hotel owners and fundamentally should be EBITDA-neutral, and distribution and loyalty, which regroups EBITDA-generating activities, including distribution, loyalty, partnership, and subscription, both expecting to contribute meaningfully to EBITDA growth.
Over the midterm, we expect revenue growth for SMDL to outpace the growth of net unit growth plus RevPAR, and this is driven by gaining distribution in feeable channels, increasing loyalty penetration, and expanding non-RevPAR revenue from partnership and subscription. Reimbursed costs, on the other hand, are a pure pass-through. For Accor, they're mostly staff costs incurred on behalf of owners, primarily in North America with Fairmont, and are the result that revenue lines should fundamentally grow in line with the growth of the payroll costs in North America, so net wage inflation plus network variation. Again, pure pass-through, no EBITDA impact. In order to provide better visibility into EBITDA-generating revenue streams, we've chosen to present reimbursed costs separately from division revenue, as you will notice in the next slide. Turning now to slide seven, revenue by segment.
The revenue by segment and by division is provided in the appendix, so this is an overall group revenue summary. Group revenue, as I was saying in my introduction, reached EUR 1,369 million in the third quarter, flat to prior year at constant currency and down 4.6% at current rates. We continue to be impacted by the weakening of the U.S. dollar and related currency, with FX negatively impacting our revenue by almost five points in the third quarter. Scope effect was also slightly negative in the period, and I'll come back to that. As expected, management and franchise revenue growth picked up in the third quarter, growing at 3.1% at constant currency, which is basically in line with the growth of the RevPAR and the NAG.
Hotel assets and other revenue was down 3.1% at constant currency, reflecting the high Olympics comps for our catering business, Hôtel de Château, as well as some disposal, mainly the festive business of Paris Society, where the focus going forward is on the development of the restaurant platform. On a positive note, the PM&E hotel assets and other was up 4.4% at constant currency, mostly driven by Australia. You see here SMDL, which is, again, sales, marketing, distribution, and loyalty revenue, down 1.6% at constant currency. Now, in the third quarter of 2024, we recognized EUR 26 million of value in kind revenue related to services provided to the Olympic Games Organizing Committee, which had no EBITDA impact. If we adjust for this accounting revenue recognition, SMDL revenue would actually be up 6% at constant currency in the quarter, reflecting RevPAR, NAG, and better distribution mix.
Turning to slide eight, management and franchise revenue by segment, which grew again at 3.1% at constant currency, which is more than two points above RevPAR growth in the quarter, down 0.9% at current rate, and this is the impact of FX. Starting with PM&E, M&F revenue was down 1.2% at constant currency. That's in line with RevPAR. The decline in NR, which is really what drove the decline for the PM&E division, mainly reflects the negative RevPAR growth, as we've seen, and to a lesser extent, the conversion of some contracts to franchise, as we have called out since our first quarter call. MEA APAC is quite impacted by FX. At constant currency, M&F revenue is up 2.9%, slightly above RevPAR. Turning to luxury and lifestyle, M&F revenue grew at the healthy rate of 11.7% at constant currency, almost seven points above RevPAR. At current rate, growth was 6%.
Both segments, luxury and lifestyle, reflect solid revenue conversions from NAG and RevPAR. In addition, and as expected, lifestyle revenue grew at a higher pace, benefiting from a more favorable phasing of residence fees. I will now turn to our guidance on page nine. We confirm our guidance for a like-for-like RevPAR growth at between 3% and 4%. As we anticipated, Q3 was our weakest quarter, and we expect a rebound in Q4, which is comforted by the Q3 exit rate with a September RevPAR at + 3%. Net unit growth is still expected at circa 3.5%, as we continue to pick up pace in the fourth quarter with a high volume of openings planned, as well a lower churn than in prior year in the fourth quarter.
Now, based on current production projections, as I stated in my introduction, we still expect FX to have a negative full-year impact of EUR 60 million, consistent with what we shared with you in July. Against this backdrop, we have secured additional profit protection measures of more than EUR 20 million, which, combined with a confident outlook for the fourth quarter, enables us to upgrade our full-year 2025 recurring EBITDA growth guidance by two points to a growth which is now expected between 11% and 12% at constant currency. I will conclude this presentation with an update on Ennismore on slide 10. As you may recall, Ennismore was created in 2021, with Accor joining its lifestyle brands with Hoxton. Today, Ennismore is a leading player in the fast-growing lifestyle hospitality segments with 192 hotels and over 500 restaurants and bars.
Today, the Accor board approved the evaluation of a potential listing of Ennismore. Such a listing would enhance liquidity for minority shareholders and provide additional flexibility to support Ennismore's growth platform. In the event a listing would take place, Accor would remain the controlling shareholder of Ennismore. At this juncture, there's no certainty that a transaction will be completed. We will inform the market of future development as appropriate. Thank you for your listening, and I will now open the floor to questions.
Ladies and gentlemen, if you wish to ask a question, please dial #KEY5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #KEY6 on your telephone keypad. The next question comes from Jamie Rollo from Morgan Stanley. Please go ahead.
Thanks. Afternoon everyone. Three questions, please. Just on the management franchise division, it's obviously encouraging to see the revenue growth back to positive territory in constant currency terms. As you call out, there are some benefits from the termination fees in the Americas and some residence income. Could you please quantify those? It looks like it's about EUR 5 million or EUR 6 million combined. Secondly, clearly also positive to get the EBITDA guidance upgrade. That 2%, as you say, is all on efficiencies. Should we then annualize that next year so there's an extra 2%, or is it maybe just a one-off for this year? Finally, just on Ennismore, just to clarify, the board is evaluating the possibility of this IPO. You're not obviously announcing an IPO.
Could you please just talk a bit about the process, when we might hear about the decision, and any other factors we need to think about in sort of judging the likelihood of it happening? Thank you.
Hi, Jamie. On the Americas, yes, you're right. That's the order of magnitude. On the profit protection plans, no, you should not double that. What that EUR 20 million+ is really a combination of delaying some and reducing some hirings, as well as reprioritizing some projects. You should not expect that EUR 20 million to become EUR 40 million next year, but you should expect that EUR 20 million to be sustainable next year. With respect to Ennismore, you're right. Right now, we have started a process of evaluating a potential listing that will obviously take a number of steps and will probably be, if indeed it is completed, at least a 12-month process.
Thank you. Presumably, the assembly disposal comes first, but any update there?
Correct. The assembly disposal should come first. The process is ongoing. We expect to receive offers during the month of November, and we still expect the transaction to be completed by the end of the second quarter next year.
Thank you very much.
The next question comes from Jarrod Castle from UBS. Please go ahead.
Good afternoon, everyone. Also, three for me. Can you just spend a little bit of time just telling us how the residence phasing has gone in the second half? Obviously, it was a little bit slow in the first half. Any thoughts there? Secondly, EUR 100 million buyback. It sounds like it completes in Q4. What made you decide now was the right time rather than, let's say, February time? Thirdly, you know a very strong pipeline. NAG's obviously lagging a bit behind. How should we think about net unit growth going forward from 2026 onwards, just given this pipeline growth? Thanks.
Hi, Gerald. Thanks for your question. In terms of residents, what we say is that overall residents will be slightly up year- over- year, and the growth will all take place in the second half, mostly in the fourth quarter. With respect to the share buyback program, we'll start the buyback in the fourth quarter. Our view is that this year, we started the share buyback after our full-year 2024 earnings call. In March, we felt that given where the share price is today, it was appropriate to have a bit more of a regular share buyback and be active in the market on a more regular basis and not have to wait for our full-year 2025 earnings release. With respect to the NAG going forward, yes, we are obviously pleased with the growth in the pipeline.
Our expectation, our CMD calls for an acceleration of the NAG towards the upper range of that 3%- 5%. This year, we are circa 3.5%, and the expectation for 2026 is to improve from that level and gradually move towards, by 2027, the upper range of that range.
Okay. It doesn't sound like there's any economic headwinds which is impacting the pipeline or NAG at the moment.
No, there isn't. You have to recall that most of our, the majority of our pipeline sits actually in the Middle East and Asia Pacific. Very, very little actually sits in the U.S., which is obviously more constrained. We have a very high conversion rate. About 2024 was about 60% of our opening door conversions. Through September, we're running at 56%.
Great. Thanks very much.
The next question comes from Muneeba Kayani from Bank of America. Please go ahead.
Thank you for taking my questions. The STO breakdown, that's really helpful. You've given the revenue breakdown for 3Q. Just in terms of details going forward, will you be giving more breakdown at an EBITDA level on STO as well? If yes, could you maybe share something on how this would be for 1H? If you had given it to us, it's just indicative, that would be helpful. Just a bit on this Ennismore listing. Why now is the board looking at it, and what is really being kind of evaluated in this process? You said Accor would still remain a controlling shareholder. You'd be selling into a listing. How would that work if you could just talk about that? Thank you.
Sure. On STO, actually, the EBITDA that was reported in the first half is the EBITDA for SMDL, right? Because the reimbursed cost is pure pass-through, that has zero EBITDA. All of the EBITDA that was reported in the first half is SMDL. Going forward, we'll continue to isolate revenue from reimbursed cost, again, zero EBITDA for that block, and SMDL revenue and EBITDA. In terms of Ennismore, Ennismore has minority shareholders. Those minority shareholders had certain liquidity clauses which were essentially exercisable during a certain time frame. We've reached that time frame, and therefore, this is why we're now considering and evaluating a potential listing of Ennismore. It's yet to be decided if Ennismore was to be listed, how that liquidity would be composed of. There's an expectation that all shareholders probably would have to contribute to that liquidity. Again, Accor will remain the controlling shareholder of Ennismore.
What are other options if you don't, if the board decides not to do a listing?
Status quo.
Okay, thank you.
Thank you for your question.
The next question comes from Leo Carrington from Citi. Please go ahead.
Thank you. If I could ask two questions, firstly on these profit protection measures, would you be able to elaborate a bit further on the remarks earlier on delayed hiring and reprioritization? Is this purely a reaction to the currency headwinds, or did market conditions change that meant these investments were no longer so pressing? In terms of where these sit, will it be more visible in STO or management and franchise EBITDA? Second question, just on the STO breakdown. Thank you for splitting out the reimbursed costs. It felt like from the discussion at H1 and 5, more disclosure was being considered in terms of the SMDL categories. Is this something that's still under consideration? Thank you.
Thank you, Leo, and hello. With respect to the profit protection plan, no, it is not related to a change in market conditions. It's really our intention to cover part of that foreign exchange impact. That's really what's driving the, let's say, reprioritizing of projects, of hiring, and of spending, generally speaking. In terms of where those savings are coming from, they're relatively balanced, a bit more coming from STO, SMDL than from M&F, but relatively balanced. In terms of splitting further SMDL, no, we do not intend to split further SMDL than what we have and what we're reporting currently. We're really just isolating reimbursed costs from SMDL.
Thank you very much, Martine.
You're welcome.
The next question comes from Estelle Weingrod from JP Morgan. Please go ahead.
Estelle?
Estelle Weingrod, your line is now unmuted. Please go ahead. The next question comes from Jaafer Mestari from BNP Paribas Exane. Please go ahead.
Hi, good evening. Actually, can I just start by making you repeat one thing you said on the profit protection program? What I heard is you should not assume an extra EUR 20 million next year, but you should assume the EUR 20 million is sustainable into next year, just to confirm.
That's correct so far.
Super. Thank you very much. I guess on SMDL, first question, apologies for asking for more detail and you're not going to split it further down, but can you help us with some granularity? Because presumably marketing, even if you don't have contractual obligations to spend it like some of your USPs, within SMDL, marketing is still pretty much zero margins. How much is marketing? How much is sales and distribution? I guess low margins. How much right now is loyalty, memberships, partnerships, which presumably is 30%+ margins, please.
You're right so far. Sales and marketing is fundamentally breakeven, 0+ , 0- , depending on the years, but it's fundamentally breakeven. Where the EBITDA comes from is from loyalty, distribution, partnership, and subscription. Within that, it's really distribution that is the major driver of that EBITDA.
Okay. Thank you. The conversion of some contracts from managed to franchise, I don't think you've quantified them explicitly so far. Presumably, they were still a work in progress, but you're getting closer to the end of the year. Do you have an estimate on the revenue impact for full year 2025? My last question is on Ennismore. When you say provide additional flexibility to support growth, what does that mean in the context of a pure asset-light business where you've been saying that the requirements for key money are not increasing?
Sure. On management to franchise, what we called out in the first quarter was that we expected the impact to be roughly 2 points of M&F revenue for PME, so slightly above 1 point at group level. It is really in the NR region. With respect to Ennismore, you're absolutely right. We don't intend to go asset-heavy in Ennismore, but Ennismore historically has grown through acquisitions, and this is potentially something that could be on their roadmap going forward. That's where the flexibility comes in.
Super. Thank you.
You're welcome.
The next question comes from Estelle Weingrod from JP Morgan. Please go ahead.
Hi, good evening. Is it working this time?
Yep.
Yes. Okay. Cool. Perfect. First question on RevPAR. We've seen an inflection in September, as you pointed to, but also in Q4 in the last STR data. Are you confident this regained momentum can be sustained over the quarter? Also, a question on France. I mean, there's lots of things going on there, likely having an impact on consumer sentiment, perhaps, as we've seen in the Q3 data. How is it evolving at the moment? Any colors, I don't know, on the books into the year-end? Also, a question, last one, on Ennismore as well. I mean, I always thought that there could be some potential dis-synergies in terms of cost duplication, and that could be an issue. Can you explain what's driving the announcement today in that regard?
Clearly, it's been talked about for a little while, but I thought maybe it would be something to be considered at the end of the CEO mandate, perhaps. Thank you.
Hi, Estelle. Sure. In terms of RevPAR, we're encouraged by the month of September. Our view today is that we should sustain that rate of growth pretty much in the third quarter. October probably will be our strongest month in that quarter, and so far, October is looking good. With respect to France, frankly, our view on France right now is that it's a relatively flattish environment. That's what we've seen in September, and we don't see any particular change or factor that would change that. It's basically a soft environment for the reasons you can imagine. Now, on Ennismore, we do not, again, we will remain the controlling shareholder of Ennismore, and Ennismore will continue to benefit from the platforms that Accor is on, mainly loyalty. Actually, any potential listing of Ennismore would not, in and of itself, create dis-synergies from what Ennismore is today.
In terms of the timing, again, the timing has to do with some liquidity windows that minority shareholders had and that we had to essentially abide by.
Okay. Thank you.
Before we take our next question, as a reminder, if you wish to ask a question, please dial #KEY5 on your telephone keypad. The next question comes from Alex Brignall from Rothschild & Co. Redburn. Please go ahead. Alex Brignell, your line is now unmuted. Please go ahead. The next question comes from Megna Abral from BlackRock. Please unmute your microphone. As a reminder, if you wish to ask a question, please dial #KEY5 on your telephone keypad. The next question comes from Andre Juillard from Deutsche Bank Equity Research. Please go ahead.
Good evening. Thank you for taking my question. I had more or less the same question that Estelle asked you about Ennismore. Just wanted to understand, to better understand what you are thinking about in terms of potential spin-off or independent listing and what it would imply in terms of shareholding. Because saying that you want to keep the majority stake in Ennismore means that you would keep 50.1% or more, considering that you have 62%. What about the other shareholders? What about the idea behind that, considering that Ennismore is not a really independent group at the moment? Thank you.
I'm sorry, but I'm not sure I listened to you. Did you hear the answer of the speaker, please? Can you tell us? Andre , can you tell us if you hear the answer of the speaker?
Yeah, yeah. I hear you.
Did you hear the answer to your question?
Thank you.
The next question comes from Alex Brignall from Rothschild & Co. Redburn. Please go ahead.
Good afternoon. Can you hear me this time?
Yep, I can hear you well, Alex.
I think it might be using Teams. Let's tell people not to use Teams in the future. I'm on a real phone now. Thank you. The first question of H1 or Q2, one of the big questions I think Jamie brought it up was on revenue timing against RevPAR and NAG. They broadly matched this quarter. You've obviously, you talked about residence fees already, but there's probably a suggestion that a bit of the unwind in the negative timing of H1 would come through. Is that really the same answer as the residence fees? Should Q4 sort of give back some of the miss on the timing that came through in Q2? The second question is on the reimbursed costs. Obviously, incredibly helpful to now have that detail.
One of the big areas of difference that happened during COVID was that the sort of STO piece, or what name it had back then, obviously had a big negative during COVID, whereas for the U.S. groups, they broadly stayed even. I guess my question is, did the negative impact from that line item during COVID, was that all the SMDL piece? Is reimbursed costs kind of, do you always run it exactly to zero every year, or is there still times when it wouldn't? Should we kind of think of that outside of adjusted EBITDA as the U.S. groups reported? The third question, if I dare, conversions. Hilton talked a lot about that, they got a new conversion product that they're pushing, and they talked a lot about really the opportunity outside the U.S., which can be diagnosed as a lack of growth opportunity in the U.S.
As it relates to your own growth, which is obviously a lot of it is not in the U.S., how are you feeling about the brand mix and the conversion versus new build dynamics? Thank you so much.
Thanks, Alex. On your first question, yes, I think what we shared in our H1 call was that those timing elements that obviously were headwinds in the first half would reverse in the second half. Resident fees, again, will be slightly up on a full-year basis, and all the growth will be in the second half. In terms of the reimbursed costs and SMDL, reimbursed costs fundamentally are a zero EBITDA activity. If you don't have the payroll costs, you basically don't have those revenue, neither do you have those costs. During COVID, that line was also at zero, and all the STO loss that took place during COVID was really the SMDL activities. Going forward, which is why we provided that midterm guidance, we do expect SMDL EBITDA to be contributing to the overall growth of the EBITDA for Accor.
On your last questions, conversions are a very important part of our growth. Again, 56% year- to- date, 60% last year. We believe that the conversions will continue to be the majority of our openings. With respect to the brands, we already have some conversion brands in the portfolio, and we think we have the right, let's say, basket of brands to drive those conversions going forward. We have a brand which is Handwritten, which is actually a good example of a conversion brand that we are going to push probably more aggressively going forward. This is actually the brand that will be on the Las Vegas property that is scheduled to open in the fourth quarter.
Brilliant. Thank you so much.
You're welcome.
Andre, we are going to answer back to your question because apparently you didn't listen to it. You didn't hear it. Sorry.
Okay. I believe your question was on Ennismore. What I said is that, one, obviously, we're evaluating the potential of listing Ennismore. We will remain the controlling shareholder. If that transaction were to take place, there would be an expectation that all shareholders would contribute to that transaction. I'm not going to comment further on what that would mean for Accor in particular.
As a last reminder, if you wish to ask a question, please dial #KEY5 on your telephone keypad. There are no more questions at this time. I hand the conference back to the speakers for any closing remarks.
Thank you, everyone. Thank you for your questions, and thank you for listening into this third quarter call from Accor, and I wish everybody a good rest of the day. Thanks.
Thank you. The conference is over. You may now discontinue.