Hotel Brands

Accor posts £336m loss

The group’s revenues for the year represented a 60% year-on-year decline

Accor has reported an EBITDA loss of £336m for the year ended 31 December 2020, marking a year-on-year swing of over £1bn.

The group also revealed a major blow to its 2020 revenues, falling 60% from £3.5bn to £1.4bn in the period.

Accor attributed the results to the “dramatic deterioration” in the wider industry due to the spread of Covid-19 that has resulted in “lockdown measures and border closures”.

Despite the disruption to trading, as of 31 December 2020, over four fifths (82%) of the firm’s global hotels were operational.

RevPAR for the company’s UK operations fell by 73.3%, with London representing a year-on-year decline of 78.5%.

The UK results sat below the firm’s global average as it was “affected by longer lockdowns than the rest of Europe as the resurgence of the pandemic was more virulent there”.

Sébastien Bazin, chairman and CEO at Accor, said: “The group’s rollout of measures to protect its financials was quick and disciplined. The measures delivered benefits over the second half of the year, and helped to limit the impact of the health crisis. 

“In 2021, while the vaccine is ensuring a gradual rebound in tourism⁠—largely driven by leisure guests—Accor is ideally positioned to benefit from the recovery and press ahead with its roadmap.”

Despite the group’s losses, it managed to add 205 hotels to its global portfolio of 5,139 while also maintaining a pipeline of 1,209 hotels, of which 73% are in emerging markets.

Bazin added: “The group also continued with the rollout of large-scale initiatives to plan ahead for the economic recovery and consolidate its leadership position in lifestyle.”

These included a merger with Ennismore that created 12 unique hotel brands and the signing of a partnership with the Faena brand.

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