Accor revenue and RevPAR plunges in first quarter of 2020

Accor announced that its first-quarter revenue fell by 15.8% on a like-for-like basis, totalling €768m (£672m). HotelServices, which operates 5,085 hotels under franchise agreements and management contracts, also reported a 17.5% like-for-like decrease in revenue to €540m (£472m). There was also a 13% fall in revenue for hotel assets, while new business revenue was also down 13.8% on a like-for-like basis. Revenue in the management and franchise business was down 34.9%, with performance hit by the global spread of coronavirus. Meanwhile, consolidated RevPAR fell by 25.4%, reflecting the “sharp deterioration” of the market following the outbreak. Within the UK, RevPAR fell by 22.1% in the period. London was more affected than regional cities with RevPAR down 23.9% and 19.7%, respectively. Nonetheless, Accor opened a total of 58 hotels (8,000 rooms) in the first quarter, which it said is a “very satisfying level given the current environment”. At the end of March 2020, the group had a total portfolio of 746,903 rooms across 5,085 hotels, and a pipeline of a further 208,000 rooms in 1,202 hotels. Due to the ongoing pandemic, however, 62% of the group’s hotels are currently closed, representing more than 3,100 units. Sébastien Bazin, chairman and CEO of Accor, 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 to support healthcare workers and all those on the front lines of the fight against Covid-19.” He added: “The group is in a strong position to address the current situation and 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.”