HotelsAccor says half of its hotels are closed, more shutdowns to come

Hotel giant takes ‘drastic actions’ across global portfolio

Accor will close more of its hotels in coming weeks
Accor will close more of its hotels in coming weeks

PARIS - Accor says that more than half its hotels are currently closed worldwide, with that percentage expected to grow to over two-thirds in the coming weeks.

“Over the past three weeks, the [Covid-19] crisis has severely deepened with over half the worldwide population either confined and/or under lockdown,” said the company in a statement. “The abrupt deterioration in the situation has prompted the group to take drastic actions across its global operations.”

Accor has responded with a variety of cost-cutting strategies, including the implementation of a travel ban, a hiring freeze and reduced scheduling and furloughs for 75% of global head office teams for the second quarter, among other measures.

Accor estimates that these efforts will result in at least a US$65 million reduction in general and administrative expenses for 2020.

The company highlighted its “strong balance sheet,” which includes cash reserves of more US$2.7 billion.

Accor said it is seeing signs of initial recovery in China, where there have been “mild improvements” in hotel occupancy and food-and beverage sales.

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