“The shock that our industry is experiencing is both violent and unprecedented. Against this backdrop, we have managed to limit the impact of the crisis: on our performance by taking immediate steps to protect our resources and, thanks to the Group recent years transformation and our sound financial structure; on our employees by implementing concrete and immediate support measures,” observed Sébastien Bazin, chairman and chief executive officer of Accor, in releasing the details of the company’s first half results for 2020.
Bazin continued: “The peak of the crisis is undoubtedly behind us, but the recovery will be gradual. Having taken these emergency steps, we must now finish the job from an asset-light model to a full asset-light company.”
And he said that: “Beyond Covid-19, this is essential. Accor must become simpler, leaner, more agile and even closer to the field. These initiatives will enable us to extend our leadership, make our decision process more efficient and boost our recovery. They will be implemented with transparency and candor and, in a spirit true to our values of solidarity and commitment.”
In the first half of 2020, Accor reported that RevPAR was down 59.3%; a marked decline that reflects the dramatic deterioration in the industry linked to the spread of the Covid-19 virus worldwide, as well as lockdown measures and border closures implemented by governments throughout the world.
Nevertheless, the company said that it is observing signs of recovery in all regions, after a particularly hard-hit period in April and May, first in Asia-Pacific (RevPAR down 77.4% in Q2) before gradually spreading to other regions, particularly Europe (RevPAR down 90.6% in Q2). During the first half, Accor opened 86 hotels, i.e. 12,000 rooms, illustrating the appeal of the Group to hotel owners.
At end-June 2020, the Group had a portfolio of 747,805 rooms (5,099 hotels) and a pipeline of 206,000 rooms (1,197 hotels), of which 75% in emerging markets.
As of Aug. 3, 2020, 81% of Group hotels were open, i.e., more than 4,000 units.
Consolidated revenue for the first half of 2020 totaled €917 million, down 48.8% like-for-like and down 52.4% as reported compared with the first half of 2019.
For more, go to https://group.accor.com/en