Accor sees revenues fall 52 percent as it’s forced to cut jobs
1,000 people at the European hospitality company will be let go
Europe’s largest hotel group Accor has announced it will cut 1,000 jobs as part of a €200 million cost saving plan to help dampen the damage of COVID-19.
The group, which owns brands such as Sofitel and Raffles broke the news after it posted its financial results for the first six months of the year. Consolidated revenue for the first half of 2020 totalled €917 million, down 48.8 percent like- for-like and down 52.4 percent compared with the first half of 2019.
RevPAR was also down 59.3 percent in the first half of the year.
Accor’s chief executive Sébastien Bazin said: “The shock that our industry is experiencing is both violent and unprecedented.”
Accor’s 1,000 man job cut is one of many measures to reduce costs by 17 percent. “Having taken these emergency steps, we must now finish the job from an asset-light model to a full asset-light company,” added Bazin.
“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.”
Thankfully for the hotel group, the virus did not slow opening plans by much, with 86 properties opened in the first six months of the year, equalling 12,000 keys. Similarly, the group managed to keep 80 percent of its properties open, around 4,000 hotels, by the start of August.
Bazin conceded that recovery will be slow, but said the peak of the pandemic is behind the group. “The peak of the crisis is undoubtedly behind us, but the recovery will be gradual.”