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THE world is facing an unprecedented health crisis that is having massive and unique impacts on the tourism industry. Nearly two-thirds of hotels under Accor hospitality group are currently closed, and most of the others are being used to support healthcare workers and all those on the front lines of the fight against COVID-19. Against this backdrop, the efforts of our employees and our owners have been extraordinary.
According to Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said today, our challenge is twofold: manage the emergency and prepare for the rebound. The Group is in a strong position to address the current situation and we are taking aggressive measures to adapt our organization.
“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. At the same time, we are preparing for the recovery alongside the authorities and professional organizations in the countries in which we operate so that the Group will be well positioned to rebound as quickly as possible,” he said.
Sébastien Bazin noted that consolidated first-quarter 2020 revenue totaled €768 million, down 17.0% as reported and 15.8% like-for-like. RevPAR fell by 25.4%, reflecting the sharp deterioration in the environment due to the worldwide spread of the COVID-19 epidemic, first in Asia-Pacific (-33.7%) and then in other regions, including Europe (-23.2%) and North America (-22.2%).
“Changes in the scope of consolidation (acquisitions and disposals) had a negative impact of-€7 million largely due to the disposal of Mövenpick leased hotels. Currency effects had a negative impact of -€4 million, mainly due to the Australian dollar (-4.2%) offset by the US dollar (+3.0%),” he added.
Bazin affirmed during first-quarter 2020, Accor opened 58 hotels, representing 8,000 rooms, which is a very satisfying level given the current environment. At end-March 2020, the Group had a portfolio of 746,903 rooms (5,085 hotels) and a pipeline of 208,000 rooms (1,202 hotels), of which 76% in emerging markets. As of April 22, 2020, 62% of the Group’s hotels are closed, i.e., more than 3,100 units.
Meanwhile Accor Group reported first-quarter 2020 revenue of €768 million, down 15.8% like-for-like. This decrease reached -17.5% for HotelServices and -13.0% for Hotel Assets. New Businesses revenue was down 13.8% like-for-like.
“Including our HotelServices, which operated 5,085 hotels (746,903 rooms) under franchise agreements and management contracts at the end of March 2020, reported a 17.5% like-for-like decrease in revenue, to €540 million. This decline reflects the rapid COVID-19-related deterioration in RevPAR. Revenue in the Management & Franchise (M&F) business was down 34.9%, with performance hit by the gradual spread of the virus in various regions,” he concluded. [sources/photo special]
