The French hotel giant reported on Wednesday a halved turnover in the first quarter of 2021, still heavily penalized by the Covid-19 pandemic that ravaged tourism and made it lose two billion euros last year.
The turnover of the world’s sixth largest hotel group, which owns brands such as Ibis, Sofitel, Novotel, Mercure and Pullman, amounted to 361 million euros, down 53%. Accor “remains very attentive to preserving its liquidity and reducing costs”, said its CEO Sébastien Bazin, quoted in a statement.
“All our efforts are now focused on the strong recovery in activity expected this summer,” he continued, describing this performance as “unsurprising” and indicating that “overall activity trends are improving slightly”.
Falling income per available room
The main division, HotelServices – i.e. its core business, the services that Accor provides to the owners of the group’s branded hotels – saw its turnover fall by 57% to 234 million euros, while that of “hotel assets and other” fell by 46% to 129 million euros.
The decline in HotelServices’ revenues reflects the deterioration in revenue per available room (RevPAR), the hotel industry’s leading indicator, “under the impact of Covid-19”, comments the group.
RevPAR thus fell by “64.3% on a like-for-like basis compared to the first quarter of 2019”, Accor said, deeming it more relevant to use 2019 as a basis for comparison, “otherwise we will have all the fluctuations experienced in 2020, and the figures will be much less meaningful”, CFO Jean-Jacques Morin said on a conference call.
Photo à la Une : Press / © Accor