Accor's second-quarter revenue per available room fell 88.2
per cent year over year on a like-for-like basis to €8, the company announced in
an earnings release Tuesday. This figure, nonetheless, is higher than the
monthly low points of 92 per cent and 90 per cent year-over-year RevPAR
declines in April and May, respectively. On average, RevPAR for the first half
of 2020 was down 59.3 per cent year over year to €25, reflecting a sharp
decline in occupancy.
Occupancy for the quarter ending 30 June was down 56.7
percentage points year over year to 14.7 per cent. For the half year, it was
down 36.6 percentage points to 31 per cent. Average daily rate dropped 36.9 per
cent to €54 for the quarter, and 10.7 per cent to €80 for the half year.
The results were not unexpected, given the effects of the
Covid-19 pandemic and governments' travel restrictions across the globe.
"The shock that our industry is experiencing is both
violent and unprecedented," said Accor chairman and CEO Sébastien Bazin.
"The peak of the crisis is undoubtedly behind us, but the recovery will be
gradual."
China was the company's first market to restart, and Europe
since June has seen a similar trend, with the gradual end to the lockdown in a
number of countries and the reopening of some borders.
Accor continues to reopen its properties across the world,
after the 30 April low point of 38 per cent open worldwide. By 30 June, 68 per cent
of the company's properties had opened, a number that increased to 81 per cent
by 3 August. As of Monday, 86 per cent of the company's Asia-Pacific hotels
were open; 82 per cent of those in Europe; 76 per cent in North America,
Central America and the Caribbean; 70 per cent in the Middle East and Africa;
and 65 per cent in South America.
To mitigate the negative financial effects, Accor has
implemented a €60 million general and administrative annual cost savings
programme that was 60 per cent achieved by the end of June, sharply reduced
other operating costs and suspended any share buybacks or dividends until
further notice.
In addition, Accor is going to "shift from its new
asset-light business model to an asset-light company", according to a
company statement. "This will lead to the implementation of a €200 million
recurring cost-saving plan", which includes simplifying and realigning
operating structures in different regions and automating tasks for repetitive
processes. On an annualised basis, two-thirds of these cost savings will be
generated by the end of 2021 and 100 per cent by the end of 2022, the company
estimates.
During the quarter, Accor launched its new All Stay Well
cleanliness programme and label for compliant hotels, as well as its All Meet
Well programme for group business in North and Central America.