Accor receives €560m revolving credit facility
The group’s liquidity position now exceeds €4bn
As hospitality groups small and large continue to fight for their survival, Accor has announced it has received a €560m revolving credit facility (RCF) to help it through the current market conditions.
Facilitated by five banks, Accor’s RCF adds to its undrawn €1.2bn RCF signed in July 2018 and grows the group’s liquidity beyond €4bn. With its €2.5bn available cash, along with these two RCFs, Accor says it can survive under the current conditions for as long as 40 months.
The latest RCF feeds into Accor’s wider mission to preserve more cash. Its plans include the suspension of share buyback programmes, the withdrawal of the dividend, the reduction of recurring investments, the suspension of external growth transactions and a range of other cost-cutting measures including salary reductions.
Considering all these efforts, the group has said it is seeing initial signs of business improvement. Areas that have started to lift restrictions, such as France and China, are reporting improved RevPAR. Hotels across Asia and Europe are also starting to reopen, with 42% of Accor’s portfolio currently operating.