Accor’s Financial Recovery Is Elusive Due to European Exposure
Photo Credit: Accor's financial woes can't get any better until European lockdowns lift. Wikimedia / Maksym Kozlenko
Skift Take
Not every hotel company is cruising into summer with accelerated springtime bookings like those for Marriott and Hilton. Accor needs greater vaccine access in Europe as well as lockdowns to lift before recovery is possible.
Accor, with a catastrophic $2.4 billion annual loss, was the financially worst-performing major hotel company last year. The first quarter of this year didn’t give much of a break to the Paris-based owner of brands like Sofitel, Fairmont, and Ibis.
While companies based in the European Union are only required to report profits or losses on a semi-annual basis, Accor gave a first quarter performance update Wednesday. Accor’s roughly $435 million total revenue was down 48 percent while rooms revenue — the hotel industry’s key performance metric — was down 64 percent from the first quarter of 2019.
