Accor closes more than half of its hotels worldwide
More than half of Accor-branded hotels worldwide are closed, which will likely rise to more than two-thirds in the coming weeks. One piece of good news, according to the firm, is the confirmation of the initial recovery of the Chinese hotel market, with mild improvements in occupancy and food-and-beverage activity. The abrupt deterioration in the situation has prompted the group to take drastic actions across its global operations. These actions are indispensable to limit the impact on earnings and cash, and necessary to prepare for the post-crisis recovery.
Measures were implemented as early as February. Given the situation, the group has decided to take aggressive, incremental actions. Collectively, these include:Travel ban, hiring freeze, reduced schedules and/or furloughing for 75 percent of global head office teams for second quarter, resulting in a minimum €60 million ($65 million) reduction in general and administrative expenses for 2020, Revie