Accor is a French company operating in the hotel sector. For several years, it has been the number one company in this sector in Europe. The company is also recognised worldwide thanks to its strong international presence. In 2020, its business was disrupted by the Covid-19 health crisis. However, the business rebounded in 2021.
For the full year 2020, the Accor Group achieved annual revenues of €1.62 billion. It reported a 60% decline (as reported) year-on-year. On a like-for-like basis, the company's annual turnover fell by 54.8% year-on-year. It also came in slightly below market expectations.
1.64 billion. In a difficult context marked by the coronavirus health crisis, the company saw its RevPAR fall by 62% over the year. This huge drop is notably due to the global deterioration of the environment illustrated by the restrictive measures taken to limit travel to counter the spread of the pandemic.
By the end of 2020, the company had 82% of its hotels open. This corresponds to over 4,000 units. For fiscal year 2020, the French hotel giant posted a negative gross operating surplus (Ebitda) of 391 million euros. As a reminder, a year earlier, it had recorded a positive Ebitda of 825 million euros.
In 2020, the group reported a recurring free cash flow of -727 million euros. Recurring investments were reduced to 102 million euros, compared to 161 million euros the previous year. For the full year 2020, the average monthly cash burn was €61 million, compared to €80 million in H1-2020.
At 31 December 2020, the Accor Group's financial position was solid, with cash and cash equivalents exceeding €4 billion.
In the first quarter of 2021, the Accor group continued to be impacted by the Covid-19 pandemic on the entire tourism sector. As a result, it saw its turnover halved over this period. Between January and March, the company's turnover stood at 361 million euros, down 53%.
In detail, the main HotelServices division (comprising the services that Accor provides to the owners of hotels under the group's name) posted revenues down 57% to 234 million euros in the quarter. 234 million. This decline reflects the sharp drop in revenue per available room (RevPAR). RevPAR is a key indicator for the hotel industry. In Q1-2021, it fell by 64.3% compared to its level in Q1-2019.
This decrease is mainly due to the impact of the coronavirus pandemic. The hotel assets and other division saw its turnover fall by 46% to €129 million in Q1-2021.
Despite the continued deterioration in business, the Accor hotel group has returned to the green in the first half of 2021. Over the first six months of this year, its turnover reached 824 million euros. It reported a 10% decrease compared to the previous year.
Compared to H1-2019, this turnover is down by 53%. In detail, the main division HotelServices recorded a turnover of EUR 545 million in H1-2021. 545 million in H1-2021, down 14% year-on-year and 60% year-on-year. In the Hotel Assets and Other division, revenues amounted to €281 million in H1 2021.
281 million in the first half of 2021, stable compared to the previous year. However, they decreased by 38% compared to 2019. For the first half of 2021, Accor posted a net profit, group share of €67 million, compared to a shortfall of €1.5 billion a year earlier in the same period.
In H1-2021, RevPar (the hotel industry's leading indicator of profitability) fell by 60% compared to the same period two years ago.
In the third quarter of 2021, the Accor group's revenue amounted to 589 million euros. 589 million, up 79% year-on-year on a reported basis. 589 million. On a comparable basis, the growth rate was the same as in the same period of the previous year (79%). However, this turnover is down by 40% compared to Q3-2019.
440 million in Q3-2021, up 94% year-on-year. 440 million in Q3-2021, up 94% year-on-year, but down 42% compared to the same period two years ago. The Management & Franchise (M&F) business posted revenues of EUR 151 million in the quarter.
151 million in the quarter, up 107% year-on-year. But they are down 45% compared to Q3-2019. The Hotel & Other Assets division grew by 57% in Q3-2021 as a whole. Between July and September, RevPar showed a 20 percentage point improvement compared to Q2-2021.
This illustrates the strong recovery in activity seen over the summer. However, the group's RevPar is down 37% compared to Q3-2019.
About Accor's dividend and market capitalisation
At the Annual General Meeting held on 29 April 2021, the Board of Directors of the Accor Group informed shareholders of its decision not to pay a dividend for the 2020 financial year. This was due to the consumption of cash during the year and the uncertainty surrounding the rebound in business activity.
In addition, the company has a remarkable presence on the financial markets. The Accor share is listed on the Paris Stock Exchange on the Euronext market. As of January 2022, the company has an estimated market capitalisation of more than 8 billion euros.
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