Accor group has reopened hotels as the Covid-19 peak seems to have passed. Accor has reported a revenue fall by 52 percent in the first half of financial 2020.
Effects on Accor group financially due to Covid-19
The company took in £826 million over time, while earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to £204 million. Accor runs major chains like Raffles and Sofitel along with budget brands such as Ibis. The company has said that 81 percent of its hotels are open now and at the end of June it had a solid liquidity position of more than £3.6 billion.
The Chief Executive Of Accor, Sébastien Bazin, said: “The shock that our industry is experiencing is both violent and unprecedented.” And also added: “Against this backdrop, we have managed to limit the impact of the crisis: on our performance by taking immediate steps to protect our resources and, thanks to the group recent years transformation and our sound financial structure; on our employees by implementing concrete and immediate support measures. The peak of the crisis is undoubtedly behind us, but the recovery will be gradual.”
Due to the crisis, as a part of £180 million per year cost-saving plan, major hotel groups of Europe plan to cut 1,000 jobs. Compared to 2019, Accor plans to reduce costs by 17 percent.
Further, Bazin mentioned: “Having taken these emergency steps, we must now finish the job from an asset-light model to a full asset-light company. Beyond Covid-19, this is essential.” He also added, “Accor must become simpler, leaner, more agile and even closer to the field. These initiatives will enable us to extend our leadership, make our decision process more efficient, and boost our recovery.”