Hotel Brands

Accor loses £17m amid Covid-19 outbreak

Accor hotel group has announced that EBITDA faced a €20m (£17m) impact due to the coronavirus outbreak.

Through the end of February, the group recorded a 4.5% like-for-like decline in RevPAR against the same period the year prior. Total RevPAR in February was down by 10.2%.

In its latest business update, Accor noted that travel and leisure markets have “declined very significantly” amid the outbreak. 

Since the last week of February, the group has seen a “strong acceleration” of  decline in activity across Europe, with a particular impact in Italy, France and Germany.

The group said that the “rapidly changing” environment will limit its ability to “fully assess” the financial impact of CoVid 19 on its activities. 

Nonetheless, Accor said it has implemented “material savings measures” to “mitigate the downturn” in activity. 

The group said it “benefits from a robust financial position”, which means it can “confidently tackle the situation and accelerate our share buyback program while maintaining our Investment Grade commitment”.

It added that it will “closely monitor” the situation and markets across the globe, and “adapt action plans accordingly”.

Sébastien Bazin, chairman and CEO, said: “I have no doubt, capitalising on our extraordinary, talented and experienced team members, our strong brand powerhouse and our global market leadership positions, we will weather the storm possibly stronger than ever.”

In the same update, Accor announced it has completed the sale of an 85.8% stake in Orbis to AccorInvest for €1 bn (£883m). 

It also gained a €430m (£378m) positive impact on net debt after completing the sale of Mövenpick hotels’ lease portfolio.

The group said that the transactions were “successfully completed” against an “uncertain global backdrop”, and the move will “further strengthen Accor’s agility and financial position”.

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