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Accor overcomes challenging environment to report record results in 2019

Accor overcomes challenging environment to report record results in 2019

Accor has reported strong financial results for 2019, with revenue up 3.8 per cent on a like-for-like basis to €4,049 million.

EBITDA at the hotel giant increased 5.9 per cent on a like-for-like basis, to €825 million.

Sébastien Bazin, chief executive of Accor, commented: “The group delivered a record performance again for financial 2019.

“This is all the more outstanding against a difficult macroeconomic background and in light of our successful transformation, parallel to achieving growth.

“Today, Accor is more diversified than ever, and a fully asset-light group.


“Going forward, we will pursue the execution of our strategy, focusing on our roadmap and value creation for shareholders.”

The group opened 327 hotels over the previous year, with a total of 45,108 rooms.

Accor now has a portfolio of 739,537 rooms in 5,036 hotels, and a pipeline of 208,000 rooms in 1,206 hotels.

Responding to the coronavirus in China and elsewhere, Accor said some 200 of its 370 Chinese hotels are no longer open for bookings.

Accor chief financial officer, Jean-Jacques Morin, said RevPAR was down 90 per cent in greater China at present.

While China alone accounts for only three per cent of group sales, Asia Pacific makes up more than a third.

There could therefore be a spill over effect on bookings elsewhere as the Chinese government looks to contain the fast-spreading virus with travel bans.

Bazin added: “While these are challenging times for China, our thoughts are with the Chinese people, our teams, our clients and our partners there.

“As we are actively managing the situation in the region, our focus is on the fundamentals, which are the cornerstone of our business model: the excellence of our 300,000-strong workforce, our powerful brands, our top-performing distribution tools and loyalty programs, our consolidated leadership position in high potential regions, and our highly robust financial position.

“By leveraging these assets, we are confident in our ability to pursue our growth objectives and enhance sustainable shareholder returns.”