Hotel Brands

Accor Q3 revenues drop 63%

Hotel giant Accor has reported that its global revenues dropped by 63% to €329m (£298m) which it attributed to the ongoing effects on the coronavirus pandemic.

The company also reported RevPAR fell by 62.8% during the third quarter of 2020, which it said was a “significant sequential improvement” in the wake of a “difficult” second quarter where RevPAR was down 88.2%.

It added this improvement reflects a recovery in business in all regions, and “most especially” in Europe during the summer season.

However, a downturn in leisure customers, in addition to the introduction of new restrictions after the end of August, pushed the recovery down in September.

Accor opened 57 hotels during the third quarter of the year, or 7,800 rooms. By the end of September 2020, the group was operating 750,135 rooms (5,121 hotels), with a pipeline of 208,000 rooms (1,192 hotels) running at 75% in emerging markets.

By the end of September 2020, 90% of the group’s hotels were open for business.

Sébastien Bazin, chairman and CEO, said: “Our performances during the third quarter point to a marked recovery of business during the summer season.

“The worst of the crisis is now behind us, but our main markets are still substantially affected by the measures rolled out to combat the health crisis. Only China reports solid performances and should swiftly recover its activity level pre-crisis.”

He added: “Against this still uncertain context, discipline, adaptability and cost control are critical. We keep transforming our organizations to make the group even more efficient, more agile, and focused on the most profitable and promising markets and segments.

“We are also deploying additional sources of revenue, in our hotels and in our loyalty program. These efforts will help us benefit faster from recovery and pursue our ambitious development of the group.”

Accor usually announces its annual EBITDA guidance when it presents the half-yearly results and revenue for the third quarter. However, it said due to the “present ever-changing environment and developments”, the Covid-19 crisis does not afford “sufficient visibility” for a reasonable target range to be provided.

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