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Accor 'seeing initial signs of business improvement'
Accor has revealed it is seeing the first "initial signs of business improvement" amid the coronavirus crisis.
The hotel giant said while operations were "still challenging", some markets were beginning to recover.
More than 40% of its network is currently operating, while the group has reopened 250 hotels since the end of April.
"In France, the lockdown relaxation and measures announced by the government to support tourism in the country are favourable elements," said Accor.
"RevPAR [revenue per available room] shows some recovery in China, while the number of opened hotels in the world increases every day in Asia and in Europe, notably in Germany."
It comes after the hotel giant on Tuesday (19 May) confirmed it had secured an additional $560 million credit facility to guard against the financial impacts of the pandemic.
The cash boosts Accor’s available liquidity to more than $4 billion, which the business says is enough to sustain it under current market conditions for more than 40 months.
Five banks are underwriting the $560 million facility, which is available for 12 months – and includes options for two six-month extensions.
Accor said its liquidity headroom comprised: $2.5 billion in cash; a $1.2 billion undrawn credit facility dating to July 2018; and the new $560 million facility.
"This reflects the renewed trust of Accor’s core banks, its business profile and strong balance sheet," said the group.
James Chapple
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