ExCeL London - 30 Sep - 01 Oct 2021
18 October 2021 - Virtual
28 October - London, UK
CEO calls for "demerger" review
Hotel group Accor has suffered a €150m net loss in the first half of the year prompting its board to give the go ahead for a "demerging" review.
The review has been proposed by Accor's chairman and ceo Gilles Pélisson and could result in the split of Accor's hotels and services core businesses.
Accor said the companies would be independent and each with its own growth strategy and resources.
The group said a "severely depressed business environment" had resulted in an 11.4% year-on-year drop in hotel revenues in the first half.
Accor said its budget hotel brands outside the US had performed better with revenues down 7.3% year-on-year.
Accor's up- and mid-market hotels and US budget hotels saw with revenue drop by 13.3% and 12.8% respectively.
The group's net unadjusted loss of €150m was made worse by €194m in "asset impairment losses", Accor said.
The loss also includes €53m in restructuring costs linked to the group's reorganisation plans.
But the group reported a net adjusted profit of €310m, lifted by €130m in capital gains.
Operating profits before tax and non-recurring items fell 44.5% year-on-year to €182m.
Accor's balance sheet was helped by cost cutting plan which has saved the group €72m in operating costs and €37m in support costs so far.
The half complete savings plan has been raised from a target of €120m to €150m.
Accor said a rise in the number of leisure travellers had boosted July trends, slowing the decline in demand across all hotel sectors.
The group forecast a pre-tax operating profit of €400-450m for the full year.