Hotel giant Accor has seen revenue fall by 52 per cent in the first six months of financial 2020.
In total the company took in £826 million over the period, while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell into -£204 million.
Sébastien Bazin, chief executive of Accor, said: “The shock that our industry is experiencing is both violent and unprecedented.
“Against this backdrop, we have managed to limit the impact of the crisis: on our performance by taking immediate steps to protect our resources and, thanks to the group recent years transformation and our sound financial structure; on our employees by implementing concrete and immediate support measures.
“The peak of the crisis is undoubtedly behind us, but the recovery will be gradual.”
In response to the crisis, the biggest hotel group in Europe plans to cut 1,000 jobs as part of a £180 million per year cost saving plan.
Accor hopes to reduce costs by 17 per cent compared with 2019.
“Having taken these emergency steps, we must now finish the job from an asset-light model to a full asset-light company,” added Bazin.
“Beyond Covid-19, this is essential.
“Accor must become simpler, leaner, more agile and even closer to the field.
“These initiatives will enable us to extend our leadership, make our decision process more efficient and boost our recovery.”
Accor runs high-end chains such as Raffles and Sofitel, as well as budget brands such as Ibis.
In more positive news, the company said that 81 per cent of its hotels were now open and that it had a solid liquidity position of more than £3.6 billion at the end of June.