That the COVID-19 pandemic has delivered a body blow to the hotel industry is not in question, but as first-quarter reports (accorhotels stock) are released we will start to see the full extent of the damage.
Accor was up first, sharing that consolidated first-quarter 2020 revenue totaled €768 million, which was down 17 percent as reported and 15.8 percent like-for-like. (accorhotels stock) Revenue per available room fell 25.4 percent, reflecting the sharp deterioration in the environment due to the worldwide spread of the COVID-19 epidemic, first in Asia-Pacific (-33.7 percent) and then in other regions, including Europe (-23.2 percent) and North America (-22.2 percent).
That the COVID-19 pandemic has delivered a body blow to the hotel industry is not (accorhotels stock) in question, but as first-quarter reports are released we will start to see the full extent of the damage.
Accor was up first, sharing that consolidated first-quarter 2020 revenue totaled €768 million, which was down 17 percent as reported and 15.8 percent like-for-like. Revenue per available room fell 25.4 percent, reflecting the sharp deterioration in (accorhotels stock) the environment due to the worldwide spread of the COVID-19 epidemic, first in Asia-Pacific (-33.7 percent) and then in other regions, including Europe (-23.2 percent) and North America (-22.2 percent).'
M&F revenue was down by a sharp 31.2 percent like-for-like in Europe, reflecting a 23.2 percent deterioration in RevPAR.
According to the report, the business has so far proven more resilient in South America, with a RevPAR decline of 11.2 percent. However, this resilience reflects the time lag in the spread of the pandemic.
The group continues to expand at a rapid pace. During Q1, Accor opened 58 (accorhotels stock) hotels, representing nearly 8,000 rooms. At the end-March 2020, the Group’s pipeline was stable and comprised 1,202 hotels and 208,000 rooms, of which 76 percent in emerging markets.
Hotel Assets
Revenue derived from the “Hotel Assets & Other” segment was down 13 percent like-for-like, reflecting the lesser impact of COVID-19 in Australia and the time lag in the spread of the pandemic in Brazil. The 20.4 percent decline in revenue (accorhotels stock) as reported was exacerbated by the sale of the Mövenpick leased hotels early March 2020.
At the end of March 2020, this segment, which includes owned and leased hotels, represented 167 hotels and 29,930 rooms.
New Businesses
New Businesses (concierge services, luxury home rentals, (accorhotels stock) private sales for luxury hotel stays, and digital services for hotels) generated revenue of €32 million, down 13.8 percent like-for-like from €37 million in 2019. The decline was 13.3 percent as reported due to currency effects.
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