Accor says half of its hotels are closed

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 $65 million reduction in general and administrative
expenses for 2020. 

The company highlighted its “strong balance sheet,” which
includes cash reserves of more $2.7 billion and an undrawn revolving credit
facility of $1.3 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

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