miércoles, 21 de abril de 2021

First-quarter 2021 revenue of €361 million down 48% like-for-like


Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said: “There were no surprises in our first-quarter performance. Global business trends are improving slightly and the ramp-up of the vaccine rollouts bodes well for a particularly strong rebound. As it did in 2020, the Group continues to keep a close eye on protecting its cash and cutting costs. Today, all our efforts are focused on the strong recovery expected this summer.” 

Press release APRIL 21, 2021 2 Consolidated first-quarter 2021 revenue totaled €361 million, down 53% as reported and 48% like-for-like versus Q1 2020 (i.e., -57% versus Q1 2019). RevPAR fell by 64.3% versus Q1 2019, reflecting an environment that remains hard hit by the Covid-19 epidemic. There were, however, significant year-on-year improvements in South Europe, Australia, the Middle East and North America. 

Changes in the scope of consolidation (acquisitions and disposals) had a negative impact of -€25 million, largely due to the disposal of Mövenpick leased hotels in early March 2020. Currency effects had a negative impact of -€11 million, mainly due to the Brazilian real (-26.4%) and the US dollar (-8.7%).

 During the first quarter, Accor opened 56 hotels, representing 7,100 rooms. Although slightly below previous years, this is a very satisfying level given the current backdrop. At end-March 2021, the Group had a portfolio of 757,000 rooms (5,163 hotels) and a pipeline of 211,000 rooms (1,204 hotels), of which 74% in emerging markets. 

As of April 19, 2021, 87% of the Group’s hotels were open, i.e., more than 4,500 units. Change in reporting format The reorganization of the Group, and notably the change of the management structure in the frame of the RESET plan, resulted in a modification of the internal performance reporting and consequently of the segment reporting in accordance with IFRS 8 (operating segments): • 

Reorganization of the operating structures within the different regions led to a change in the geographic reporting of the Management & Franchise segment. o Europe is split between South Europe (including France) and North Europe (including the United Kingdom and Germany); o Asia-Pacific (ASPAC) comprises the Pacific, Southeast Asia and Greater China regions; o Middle East & Africa (MEA) has been renamed India, Middle East, Africa & Turkey (IMEAT) as the region now includes India (previously in ASPAC) and Turkey (previously in Europe); o North/Central America, the Caribbean and South America have been grouped together under “Americas”. • The Holding & Intercos segment remains unchanged. • The Hotel Assets & Other segment now includes all activities not related to HotelServices.

 3 The first-quarter 2021 information is also presented in the previous reporting format in the appendix to this press release, along with the figures for the last two years in the new format. Decrease in revenue The Group reported first-quarter 2021 revenue of €361 million, down 48% like-for-like versus Q1 2020.

 This decline came to -56% for HotelServices and -33% for Hotel Assets & Other. To provide a comparison with RevPAR (presented as the change versus Q1 2019 throughout this release), the like-for-like decline in revenue versus Q1 2019 is 57%. In € millions Q1 20 Q1 21 Change (as reported) Change (LFL)(1) Change (LFL) (1) vs 2019 HotelServices 540 234 (57)% (56)% (64)% Hotel Assets & Other 239 129 (46)% (33)% (44)% Holding & Intercos (11) (2) N/A N/A N/A TOTAL 768 361 (53)% (48)% (57)% (1) Like-for-like: at constant scope of consolidation and exchange rates. HotelServices HotelServices, which comprises fees from Management & Franchise (M&F) and Services to Owners, reported €234 million in revenue, down 64% life-for-like versus Q1 2019.

 This decline reflects the Covid-19-related deterioration in RevPAR. Revenue in the Management & Franchise (M&F) business was €73 million, down 69% like-for-like versus Q1 2019, with performance hit by the gradual spread of the virus in various regions. In general, the sharper decline in M&F revenue reflects the collapse in incentive fees based on the hotel operating margin generated from management contracts. In € millions Q1 20 Q1 21 Change (LFL)(1) Change (LFL) (1) vs 2019 South Europe 36 17 (53)% (67)% North Europe 35 10 (70)% (80)% ASPAC 27 20 (27)% (62)% IMEAT 23 11 (47)% (69)% Americas 30 15 (57)% (70)% TOTAL 150 73 (52)% (69)% 4 (1) Like-for-like: at constant scope of consolidation and exchange rates.

 Consolidated RevPAR was down 64.3% overall in Q1 2021 versus Q1 2019. This decline reflects an environment that remains at the mercy of the health situation, notably linked to the emergence of Covid-19 UK variant. RevPAR improved sequentially in South Europe to -63.2%, mainly due to the easing of some of the restrictions. • RevPAR fell by 60.8% in France, reflecting an improvement vs. Q4 2020 as there was no lockdown in France over Q1 2021.

This performance is driven by the province (-49.4%), which welcomed domestic business clientele in particular. In contrast, Paris (RevPAR down 74.8%) suffered from the absence of international clientele. 

The third lockdown implemented since April 6 could, however, have an adverse impact on the second quarter before some restrictions are potentially lifted mid-May. • In Spain, RevPAR fell by 80.8% versus Q1 2019. North Europe reported a sharper drop in RevPAR of 81.9% due to the extension of strict lockdown measures since end-2020. • In the United Kingdom, RevPAR fell by 86.5%.

 London was more affected than the regional cities with RevPAR down 91.1% and 80.5%, respectively. The gradual easing of the restrictions expected to begin on May 17, 2021 bodes well for an improvement in the second quarter. • The 87.1% decline in RevPAR in Germany was similar to that of the United Kingdom. In Asia-Pacific, RevPAR fell by 54.8%, with mixed performances by region. • In China, RevPAR fell by 42.6% in first-quarter 2021, representing a sharp deterioration versus Q4 2020 (-18.1%). 

The region saw a resurgence of Covid-19 cases between January and February, leading the authorities to reintroduce severe restrictions, particularly during the Chinese New Year. The situation improved considerably again in March with a RevPAR down by 31%. • In Australia, the lifting of the restrictions to coincide with the summer vacation period played a role in the sequential improvement in RevPAR, which was down 43.5%, notably for our Mantra portfolio on the Gold Coast. 

This decline was also mitigated by hotels being used for quarantine, which had a positive short-term impact on RevPAR. 5 In the India, Middle East, Africa & Turkey region, RevPAR was down 50.5%. This improvement in performance was driven by the United Arab Emirates, and more specifically by Dubai, which saw a strong inbound from Europe as most of the border restrictions have been eased. Whether or not this regional improvement continues will depend on events expected to take place mainly in the second half of 2021, including the Hajj pilgrimage and Expo 2020. RevPAR was down 72.8% in the Americas. • There was an improvement in North/Central America and the Caribbean, with RevPAR down by 76.3%. The recovery is pulled up by the US where the deployment of the vaccines is fast. • In South America, where RevPAR fell by 62.9%.

 An improvement appeared to be underway at the beginning of the year before cases surged again in March, mainly in Brazil with more aggressive variants. Hotel Assets & Other Revenue in the “Hotel Assets & Other” segment was down 44% like-for-like versus Q1 2019, reflecting a smaller decline in RevPAR in Australia. 

This segment now comprises New Businesses (concierge services, luxury home rentals, private sales of hotel stays, and digital services for hotel owners) which continue to be affected in different ways, ranging from the severely affected businesses directly related to the Travel sector, such as onefinestay’s private home rentals, to the digital businesses, such as the services provided by D-Edge. At end-March 2021, this segment, which includes owned and leased hotels, represented 122 hotels and 23,942 rooms. 

EBITDA sensitivity and cash burn indicators reiterated Accor confirms its EBITDA sensitivity per point of RevPAR a tad below €18 million, down from 2019, and monthly cash burn of less than €40 million. These indicators should be viewed in the context of the Group’s healthy balance sheet, which has €3.6 billion in cash, of which €1.8 billion of undrawn revolving credit facility. 6 Events from January 1, 2021 to April 22, 2021 Capital increase of AccorInvest On January 14, 2021, the Extraordinary General Meeting of AccorInvest’s shareholders approved the completion of a €150 million euros capital increase subscribed by all shareholders in proportion to their ownership, representing €45 million for Accor. 

Besides, a second tranche amounting to €327 million euros (including €109 million euros for Accor) is expected to be proposed for approval to the Extraordinary General Meeting that will be held on March 1, 2021, subject to a subscription by all shareholders. Redemption of bond On February 5, 2021, Accor redeemed the maturing €550 million outstanding amount of a €900 million bond issued in February 2014. In 2019, this bond had been partially repurchased in the amount of €350 million. This redemption has been funded through the issuance of bonds convertible and/or exchangeable into new and/or existing shares (OCEANEs) on December 7, 2020. 

Covenant holidays On February 8, 2021, Accor obtained a one-year extension of the covenant holiday for the €1,200 million revolving credit facility, concluded on June 2018 a bank consortium. The covenant will not be tested on the next two test dates on June 30 and December 31, 2021. Disposal of Huazhu Group Ltd shares On February 18, 2021, Accor sold a part of its share in Huazhu Group Ltd which represent 1,5% of share capital of the company for 239 million euros. After completion of this transaction, the Group retains a 3.3% residual interest in the share capital. Upcoming events in 2021 April 29th: Annual Shareholders’ Meeting

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