French Hotel Chain Accor Suffers Nearly €2B Losses Because Of Pandemic
French hotel chain Accor (the sixth largest in the world) ended 2020 with a net loss of €1.99bn, according to the company’s financial report. The COVID-19 pandemic caused the company’s revenues to drop by 60.5% to €1.14bn. Accor’s revenue per room on average fell by 62%.
In the second quarter of 2020, at the height of the pandemic, the figure was 88.2% worse than that of the previous year. At the same time, the company experienced the hardest period of coronavirus restrictions in Europe, where its profitability fell by 73.1% at the end of the year. Nevertheless, Accor opened an additional 205 hotels worldwide in 2020, bringing the total number to 5,100. In December, 82% of them welcomed guests.
Earlier the world’s largest hotel chain Marriott International reported its first annual loss in a decade. At the end of the year the company recorded a loss of $267 million.
The pandemic COVID-19 severely affected hotel business. Thus, according to STR, last year revenues of hotels collapsed by 47.5%. At the end of the fourth quarter, the hotel chain Hilton recorded a loss of $224 million and Hyatt – $203 million. Profitability of the two companies per room collapsed by 59% and 69% respectively.