Accor has announced plans to open over 1,200 hotels in the next five years, signalling the industry’s confidence in strong long-term travel demand after the pandemic, Reuters has reported.

In the period between 2023 to 2027, the company plans a return to shareholders of approximately €3bn ($3.28bn) through share buybacks and dividends. It has also raised this year's core earnings outlook.

The hospitality company is expecting 15% to 20% growth in 2023 revenue per room (RevPAR) and expects core earnings before interests, taxes, depreciation, and amortisation (EBITDA) between €920m ($1bn) and €960m ($1.05bn).

It expected €89 per night would be the average price for a room in the first quarter of 2019. The average price increased by about 19% to €106 following the reorganisation.

Accor chairman and CEO Sébastien Bazin said: "Over the past ten years, Accor has undergone a radical transformation.

“Now Asset Light, the group has expanded its brand portfolio to become the leader in luxury and lifestyle, strengthened its geographical footprint and simplified its organisation, while preserving its financial independence and the strength of its balance sheet.

“With its two recently created divisions - premium, midscale and economy on the one hand and luxury and lifestyle on the other - the group is embarking on a new chapter of rapid, profitable growth.”

The company targets 9 to 12% growth per year in EBITDA, as well as its RevPAR by three to four per cent per year between 2023 and 2027.

In a separate development, Accor has finalised a franchise deal with Minimax Group to open the newly built Mercure Prishtina City in Kosovo.

The new urban hotel features 75 modern guest rooms, a lounge area, a lobby bar, one restaurant, fully equipped meeting rooms and a wellness club.