Accor suffer first-half declines

SINGAPORE, 6 August 2020: Accor’s first-half financial results showed RevPAR plummeted 59.3% a marked decline that reflects the dramatic deterioration in the industry linked to the spread of the Covid-19 virus worldwide.

However, despite lockdown measures and border closures implemented by governments worldwide, the global hotel group observed signs of recovery in all regions.

Following a particularly hard-hit period in April and May, that saw declines register first in the Asia-Pacific (RevPAR down 77.4% in Q2) before gradually spreading to other regions, mainly Europe (RevPAR down 90.6% in Q2).

During the first half, Accor opened 86 hotels with around 12,000 rooms, and at the end of June, the group had a portfolio of 747,805 rooms (5,099 hotels) and a pipeline of 206,000 rooms (1,197 hotels). Around 75% was in emerging markets.

Hotel services, which includes fees from management and franchise (M&F) and services to owners, reported revenue of EUR650 million, down 52.8% like-for-like reflecting the decline in RevPAR as a result of the health crisis and government lockdown measures implemented worldwide.

Management and franchise (M&F) revenue amounted to EUR139 million, down 72% like-for-like, reflecting the collapse in incentive fees based on hotel operating margin generated from management contracts.

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