Accor today reported its full 2020 results that were awful. The group lost close to two billion euros last year.
The revenues came in at €1.6B while simultaneously losing €2B. Accor has €4B liquidity available.
You can access Accor here.
Accor’s hotel portfolio at the end of 2020:
Accor doesn’t break down luxury and upscale but rather lumps them together (red flag – looks better this way). Accor is very weak in the luxury segment.
52% of Accor’s hotels are in the economy segment (40% of the rooms) and another 31% (33% of the rooms) in the midscale.
The reason why Accor did so badly in 2020 is clearly when you look at where most of their hotel portfolio is – Europe 59% of the hotels and 46% of the rooms. Many markets still are closed and not allowing any non-essential travel.
The bright spot is Accor’s strength in Asia-Pacific that has weathered the Covid-19 much better than Europe and the Americas. 25% of Accor’s hotels are in the area representing 32% of the rooms.
How RevPAR has developed in 2020 in three markets:
RevPAR stands for Revenue per Available room. Europe is still in very dark spot
Hotel Portfolio by Market:
Here’s the press release:
The fiscal Year 2020 presentation:
RevPAR in 2020:
I am sure that Accor will pull through, if not by itself, but with the French government’s help. France would not allow a company as significant as Accor to go under.
Accor still has significant untapped credit lines, but they need to stop the bleeding by the end of 2021.