Accor is confident it will weather the COVID-19 storm.

French hotel giant Accor is hit hard by COVID-19 but is taking steps to mitigate the crisis and support staff and healthcare workers.

Hotel groups around the world have been hit hard by the spread of COVID-19.

But even though they faced drastic drops in revenue and had to close down properties in many countries, groups like Accor have also stepped up and are doing their part to help face these challenging times.

We take a look at how French hotel giant Accor has been impacted and what they are doing to support the communities they operate in.

COVID-19 impact on Accor

In a recent press release, Accor described how heavily the company has been impacted by the COVID-19 situation and the resulting safety measures. As of now, more than half of Accor’s properties worldwide are closed. In the coming weeks, this is likely to rise to two thirds.

Unsurprisingly, this has led to a severe impact on the group’s performance for 2020 and has made decisive measures necessary to reduce costs.

Mitigation measures taken by Accor

To begin, Accor announced a business travel ban for all its staff and a hiring freeze. 75% of global head office teams have been furloughed for Q2. This and other related measures have resulted in a €60m reduction in capital expenditures. The dividend for 2019 has also been cancelled.

Despite all this, the group’s leadership remains positive about Accor’s future, especially given its recent asset-light transformation which resulted in more than €2.5bn in cash on hand and an undrawn revolving credit facility of €1.2bn.

Supporting staff in times of need

Now, for some more positive news. Part of the money saved on the dividend will go to a fund created to support Accor’s staff. It will be used to cover COVID-19-related hospital expenses for people without health insurance and for furloughed employees facing financial hardships, among others. Other steps to support partners and front-line healthcare workers will be undertaken as well.

Welcoming healthcare workers around France

Recently, Accor has set up the CEDA (Coronavirus Emergency Desk Accor) to quickly and efficiently provide accommodation solutions for healthcare staff across France.

Together with the AP-HP university hospital trust and its partners, the hotel group now offers medical workers fighting against COVID-19 a place to stay which is close to their workplace. Rooms can be requested via the CEDA email [email protected].

Supporting the disadvantaged

For those who do not have a home where they can ‘shelter in place’, Accor has opened over 1,000 rooms around France. Together with the French Minister for Cities and Housing, hotel owners and local authorities, accommodations are being made available. Requests for rooms are also being handled by the CEDA platform.

“Welcoming, protecting and taking care of others is at the very heart of what we do. The dedication of our owners and our teams during this period has been exemplary and we are doing everything we possibly can to meet accommodation needs as effectively as possible. As our country battles to contain this unprecedented health crisis, Accor stands side by side with those who need to be protected and those on the front line who are protecting us,” said Sébastien Bazin, Chairman and CEO of the Group.