Accor reports ‘significant rebound in activity’ during 2021

Hotel group Accor has reported a net profit and rising revenue for 2021, as it saw a “significant rebound in activity” during the year.

Its revenues rose 34% year-on-year to €2.2 million, and the group’s net profit was €85 million, compared to a loss of almost €2 billion in 2020.

The Ebitda (earnings before interest and tax) figure was €22 million, compared with negative Ebitda of €391 million in 2020.

From April 2021 onwards, Accor saw revpar (revenue per available room) improving month after month.

This improvement in demand meant that average room rates came close to or, in many destinations at the end of 2021, even exceeded pre-Covid-19 levels.

In the UK, revpar was down 49% compared with 2019. Regional cities were down 34% on 2019 as they benefited from domestic leisure tourism demand with average prices higher than those seen in 2019.

London, which is more dependent on international visitors, saw revpar decline by 63%.

Although the effects of the pandemic have not yet fully disappeared, all the group’s regions are seeing more “normative” levels of business.

The Omicron variant outbreak meant the monthly revpar increases stopped but February is already a “turning point”, said the group.

Sébastien Bazin, chairman and chief executive, said: “Despite a disrupted start of the year due to overall health restrictions, 2021 showed significant improvement in our business, as of the spring, with trends picking up month after month right up to December.

“Our solid performances were achieved owing to the strength of our brands, our financial discipline and the sterling efforts of our teams who, throughout the year, demonstrated determination, tenacity and generosity.

“Thanks to their mobilisation, we emerge stronger from this crisis and have gained market shares in all our key regions.”
He said the pipeline of new properties “continues to flourish,” with Accor’s Luxury & Upscale segment representing almost 40% of future openings, a 12-point increase in the past four years.

“As the desire to escape and to resume travelling has never been stronger, we are well under way to make the most of this rebound in all our markets,” he added.

During 2021, Accor opened 288 hotels, resulting in a net growth of 3% over the 12-month period.

At the end of December 2021, the group had 5,298 hotels and a pipeline of 1,218 properties.

• Following news of an easing of quarantine rules in Thailand, Accor has extended its ‘For the Love of Amazing Thailand’ campaign with savings of up to 30% at more than 70 hotels and resorts.

Fully vaccinated travellers can now visit Thailand without a long quarantine, as visitors are required to stay at a SHA+ [Safety and Health Administration] hotel on the first and fifth day of their trip.

Testing is undertaken at the hotel on these days to allow the freedom to explore in between, as soon as negative test results are returned.

Accor is the largest international hotel operator in Thailand, with hotels and resorts under the Sofitel, SO/, MGallery, Mövenpick, Pullman, Swissôtel, Grand Mercure, Mercure, Novotel, ibis and ibis Styles brands, in 14 destinations.

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