Accor announced it has secured a new €560m (£500m) banking credit facility in order to support the hotel group through the ongoing crisis.
The agreement, which was signed with a consortium of five banks, reportedly complements the undrawn €1.2bn (£1.07bn) revolving credit facility signed in July 2018.
Accor said that the new funding “further reinforces” its liquidity position, which currently exceeds €4bn (£3.6bn).
The new fully committed facility has a 12 months tenor, with two six-month extension options. It also has no covenant or restriction.
The facility was underwritten by BNP Paribas, Crédit Agricole CIB, Crédit Industriel et Commercial, Natixis and Société Générale, which “reflects the renewed trust” of Accor’s core banks in its business profile and strong balance sheet.
In its latest update, Accor said that whilst operations are “still challenging”, it has seen “initial signs of business improvement”.
The group has welcomed the “favourable” lockdown relaxation in France, and noted that RevPAR has shown some recovery in China. Some 42% of its hotels network is currently in operation, with a further 250 hotels reopened since the end of April.
In further efforts to preserve cash amid the ongoing crisis, Accor has suspended its share buyback programmes and withdrawn its dividend in respect of 2019. The group has also reduced recurring investments and suspended its external growth transactions.