Accor ‘prepared for the rebound' despite fall in revenue and revpar

29 July 2021 by
Accor ‘prepared for the rebound' despite fall in revenue and revpar

The chief executive of Accor has said the hotel group is "prepared for the rebound" of the hospitality and travel sectors despite a 10% drop in revenue to €824m (£701m).

In its half-year trading update, the group said the recovery was "gaining traction" and cost savings were "delivering results", but earnings before interest, tax, depreciation and amortisation (EBITDA) were negative at €120m (£102m) and revenue per available room (revpar) was down by 60% against the same period in 2019.

However, the revenue decline masked mixed situations by country, with certain regions experiencing a "remarkable improvement" from the first quarter, while others continued to be hard-hit by government restrictions.

In the UK, in which revpar was also down 60% in the second quarter, regional cities and domestic demand were the driving force. London was more affected with revpar down 79%.

During the first half of the year, Accor opened 121 hotels, representing 15,000 rooms. At the end of June, it had a portfolio of 762,000 rooms (5,199 hotels) and a pipeline of 211,000 rooms (1,203 hotels). As of 26 July, 93% of its hotels were open, equating to more than 4,800 units.

Sébastien Bazin, chairman and chief executive of Accor, said: "Since May, we have seen a clear recovery. Positive signs including the ramp-up of vaccine roll-out and the progressive reopening of borders will continue throughout the summer.

"In the first half of the year, Accor significantly improved its operating performance. Furthermore, we continued to efficiently and cautiously manage our liquidity and investments. We are therefore prepared for the rebound with a solid balance sheet and an increasingly agile and efficient organisational structure. It is still too early to fully define the outlook for the end of the year, but we are confident in our ability to capture recovery in all geographies and to put into place a reinvented vision of travel."

Photo: Shutterstock

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking