ACCOR: HALF-YEAR 2021 - THE RECOVERY IS GAINING TRACTION, BUT REMAINS HETEROGENEOUS
RESET recurring cost savings initiatives are delivering results |
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ACCOR: HALF-YEAR 2021 - THE RECOVERY IS GAINING TRACTION, BUT REMAINS HETEROGENEOUS
RESET recurring cost savings initiatives are delivering results |
Catégorie : Monde - Économie du secteur
- Chiffres et études
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REVPAR down by 60% versus H1 2019
EBITDA sensitivity andcash burn indicators confirmed for full-year 2021
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Revenue down 10% to €824 million ((6)% lfl)
H1 EBITDA negative at €(120) million
Negative recurring free cash flow of €(260) million
Net profit, group share of €67 million
Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said:
“Since May, we have seen a clear recovery. Positive signs including the ramp up of vaccine roll out and the progressive reopening of borders will continue throughout the summer.
In the first half of the year, Accor significantly improved its operating performance. Furthermore, we continued to efficiently and cautiously manage our liquidity and investments. We are therefore prepared for the rebound with a solid balance sheet and an increasingly agile and efficient organizational structure. It is still too early to fully define the outlook for the end of the year, but we are confident in our ability to capture recovery in all geographies and to put into place a reinvented vision of travel.”
Consolidated first-half revenue (H1 2021) totaled €824 million, down (10)% as reported and down (6)% like-for-like versus first-half 2020 (H1 2020), i.e., (53)% compared with first-half 2019 (H1 2019).
RevPAR fell by (60)% versus H1 2019. This decline masks very mixed situations by country. Certain regions experienced a remarkable improvement from the first quarter of the year, while others continued to be hard-hit by government restrictions linked to the Covid-19 health crisis.
Changes in the scope of consolidation (acquisitions and disposals) had a negative impact of €(19) million, largely due to the disposal of Mövenpick leased hotels in early March 2020.
Currency effects had a negative impact of €(16) million, mainly due to the US dollar (+10%) and the Brazilian real (+21%).
During the first half, Accor opened 121 hotels, representing 15,000 rooms, i.e., net system growth of +1.9% over the twelve-month period. The pace of the gross opening was subdued as the hotel owners are cautiously monitoring the activity rebound. The Group expects a net system growth in the low range between 3% and 4%.
At end-June 2021, the Group had a portfolio of 762,000 rooms (5,199 hotels) and a stable pipeline of 211,000 rooms (1,203 hotels).
As of July 26, 2021, 93% of Group hotels were open, i.e., more than 4,800 units.
Consolidated revenue
The Group reported first-half 2021 revenue of €824 million, down (6)% like-for-like versus H1 2020. The change amounted to (14)% for HotelServices and +8% for Hotel Assets & Other. To provide a comparison with RevPAR (presented as the change versus H1 2019 throughout this release), the like-for-like decline in revenue versus
H1 2019 is (53)%.
HotelServices revenue
HotelServices, which includes fees from Management & Franchise (M&F) and Services to Owners, reported €545 million in revenue, down (60)% like-for-like versus H1 2019. This decline reflects a deterioration in RevPAR ((60)% compared with H1 2019), linked to restrictions of the Covid-19 health crisis.
The Management & Franchise (M&F) business reported revenue of €163 million, down (67)% like-for-like compared with H1 2019. By region, M&F revenue performance is linked to the business recovery pace. In general, the sharper decline in M&F revenue mainly reflects the collapse in incentive fees based on the hotel profitability generated from management contracts over the period.
Consolidated RevPAR posted an overall decline of (60)% in H1 2021 compared with H1 2019 and of (58)% in Q2 2021 versus Q2 2019. This decline hides heterogeneous situations by country and an improvement of about 5 points every month since April. Moreover, July also confirms this trend.
Europe saw an acceleration over the second part of Q1 2021 with the restrictions relaxation and encouraged by the high rate of vaccination now above 50%
RevPAR in South Europe was down (63)% vs. Q2 19 impacted by the lockdown implemented in France in April.
- In France, RevPAR was down (61)% in Q2 2021. This performance masks a
22 percentage point RevPAR improvement between April and June 2021. Over the period, RevPAR for regional cities was down (50)% compared with (76)% for Paris. July to date the effect of the fourth wave is very limited.
- In Spain, RevPAR fell by (74)% versus Q2 2019.
RevPAR in North Europe rebounded in Q2 at (74)% after a Q1 marked by lockdown measures.
- In the United Kingdom, regional cities (RevPAR down (60)% in Q2 2021) were also the driving force with domestic demand (RevPAR down by (60)%). London was more affected with RevPAR down (79)%. Since July 19th, quarantine-free travel in qualified countries resumed for fully vaccinated British residents.
- In Germany, the quarter-on-quarter improvement in RevPAR was more moderate, declining (84)% in Q2 2021. This performance stems from a delayed relaxation of the restrictions and absence of business events.
In Asia-Pacific, RevPAR fell by (38)%, with mixed performances by region in Q2 2021.
- Pacific and Greater China reported a great improvement of the activity with RevPAR only down by (19)% and (18)% in Q2 2021. Both regions benefitted from large domestic markets and controlled sanitary situations. New clusters in the large cities like Sydney and Melbourne have affected RevPAR since end of June though it is still a low number of cases.
- Southeast Asia suffered from dependence on international travelers with RevPAR down (69)% in Q2 2021. Vaccination is lagging in the region. Singapore is the exception and benefit from quarantine business.
In the India, Middle East, Africa & Turkey (IMEAT) region, RevPAR was down (44)% in Q2 2021. This performance was driven by Dubai which benefited from a recovery in leisure guests and largely eased border restrictions. Whether or not this regional improvement continues will depend on events expected to take place mainly in the second half of 2021, including Expo 2020. Saudi Arabia was impacted by restrictions around pilgrimage. Umrah permits were stopped since end-mid June before resuming on August 10th.
In the Americas, RevPAR was down (63)% in Q2 2021 with Brazil and the US strongly accelerating in June.
- North/Central America and the Caribbean reported improvements with RevPAR down (62)% in Q2 2021 driven by the United States where activity in accelerated over the past months, while Canada continued to suffer from major restrictions. The reopening of the borders with the US is expected on August 9th.
- In South America where RevPAR fell by (62)% in Q2 2021, the situation improved mainly during the end of the second quarter due to the acceleration of the vaccination and the decline in the number of Covid cases, notably in Brazil.
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