Revenue in the third quarter of 2020 came in at €329 million, down by 68.7 percent as reported and by 63.7 percent like-for-like. RevPAR also saw sizable drops, falling by 62.8 percent in Q3 2020.Accor delivered these results with a tone of optimism, painting Q3 2020 as a quarter of ‘significant sequential improvement’ compared to Q2 2020. RevPAR in Q2 2020 was down by a substantial 88.2 percent for example.
The group opened 57 hotels during the third quarter of the year, equalling 7,800 rooms. By the end of September 2020, Accor was operating 750,135 rooms (5,121 hotels), with a pipeline of 208,000 rooms (1,192 hotels). By the end of September 2020, 90 percent of hotels were open for business, just over 4,600 units.Accor chairman and CEO Sébastien Bazin 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.”
“Against this still uncertain context, discipline, adaptability and cost control are critical. We keep transforming our organisations 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 programme.”As early as May this year, Accor announced it had received a €560m revolving credit facility (RCF) to survive the pandemic. Facilitated by five banks, Accor’s RCF added to its undrawn €1.2bn RCF signed in July 2018 and raised the group’s liquidity beyond €4bn. With its €2.5bn available cash, along with these two RCFs, Accor said it could survive under the current conditions for as long as 40 months (stated in May 2020).
In mid-August, Accor announced it would slash 1,000 jobs as part of a €200 million cost-saving plan to see the group through the virus. At the time, Bazin called the job cuts an “emergency step” to help bring costs down by 17 percent.Read the full report here.