Accor shuts two-thirds of hotels amid Covid-19 crisis

Accor has a “robust balance sheet” despite reporting a 17% drop in first quarter revenues amid the Covid-19 crisis.

The figure was down to €788 million over the same period last year, with revenue per available room (revpar) down by a quarter.

This reflected a “sharp deterioration” due to the worldwide spread of the virus, first in Asia-Pacific – down 33.7% – then Europe – down 23.2% – and North America – down 22.2%.

The French hospitality giant has now closed 62% or more than 3,100 hotels. Most properties in the UK have been shut since March 25.

Chairman and chief executive Sebastien Bazin said: “The world is facing an unprecedented health crisis that is having massive and unique impacts on the tourism industry.

“Nearly two-thirds of our hotels are currently closed, and most of the others are being used t support healthcare workers and all those on the frontlines of the fight against Covid-19.

“Today our challenger is twofold – manage the emergency and prepare for the rebound.”

He added: “Our group is in a strong position to address the current situation and we are taking aggressive measures to adapt our organisation.

“Accor’s recent transformation has left the group with a robust balance sheet which will enable it to absorb the economic consequences of this crisis in the coming quarters.

“A the same time, we are preparing for the recovery alongside the authorities and professional organisations in the countries in which we operate so that the group will be well positioned to rebound as quickly as possible.”

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