Accor launches €200m saving plan as Covid-19 halves group-wide revenue
Accor has launched a €200m (£180m) cost-saving plan in response to the "violent and unprecedented" shock of Covid-19, which saw group-wide revenue more than halved in H1 2020.
Revenue fell by 52% to €917m (£826m), while earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell into the negative at -€227m (£204m).
In the UK revpar fell by 64.8% in London, and 63.5% in the rest of the country, with 99% of the group's hotels closed at the end of June.
The hotel group has said it will look to simplify and realign operating structures across different regions as well as looking to automation to meet its £180m cost-saving plan, expecting to see two-thirds of the target reached by the end of 2021.
Sébastien Bazin, chairman and chief executive officer, said: "The peak of the crisis is undoubtedly behind us, but the recovery will be gradual."
He added: "Accor must become simpler, leaner, more agile and even closer to the field. These initiatives will enable us to extend our leadership, make our decision process more efficient and boost our recovery."