Accor remains focused on the strong recovery expected in the hospitality industry this summer as it announced a 53% fall in first-quarter revenue to €361 million.
Revenue per available room (RevPAR) fell by 64.3% versus Q1 2019 (Accor did not provide a figure for 2020). During the first quarter, Accor opened 56 hotels, representing 7,100 rooms, slightly below previous years. As of April 19, 2021, 87% of the group’s hotels were open.
Like other European companies, Accor isn’t required to report all financial metrics on a quarterly basis.
“There were no surprises in our first-quarter performance. Global business trends are improving slightly and the ramp-up of the vaccine rollouts bodes well for a particularly strong rebound,” Sébastien Bazin, chairman and CEO of Accor, said.
“As it did in 2020, the Group continues to keep a close eye on protecting its cash and cutting costs. Today, all our efforts are focused on the strong recovery expected this summer.”
Accor’s regional performance was driven by the lockdown restrictions imposed. For example, RevPAR improved sequentially in South Europe, which includes the likes of France and Spain, to -63.2%, mainly due to the easing of some of the restrictions.
The converse was true in the United Kingdom, RevPAR fell by 86.5%. However, the country is ahead of the rest of Europe in terms of vaccine deployment and the gradual easing of the restrictions expected to begin on May 17, points to an improvement in the second quarter.
Accor struck a deal with lenders in February, which gives it a one-year extension to its €1.2 billion revolving credit facility. The covenant will not be tested on the two dates that had been scheduled this year: at the end of June and December.