Accor has reported a drop in revenue of 52.4% to £828m in the first half of 2020, and has now launched a £180m cost-saving initiative including “immediate drastic measures” to mitigate the impact on earnings.
This involves a “simplification and realignment” of its operating structures across regions, and the automation of tasks for repetitive processes.
Two thirds of these cost savings will be generated by the end of next year, and 100% by the end of 2022.
The group it is “observing signs of recovery” across all regions now, and despite the crisis, Accor opened 86 hotels, or 12,000 rooms, in the half-year period.
At the end of June, the group was operating a portfolio of almost three-quarters of a million rooms across more than 5,000 hotels, with a pipeline of 206,000 rooms across 1,197 hotels in the future.