France: Multinational Hotel Group Accor has announced the addition of €560m to its revolving banking credit facility resources.
Accor’s liquidity position now exceeds €4bn.
The new influx adds onto the €1.2bn credit facility previously signed in July of 2018, which supplements the €2.5bn cash on hand already available to the group. The effort has been underwritten by five different banks, including BNP Paribas and Crédit Agricole CIB.
This is part of the company’s current mission to preserve its liquidity and stay adaptable during a time of low income. Accor has also halted all buyback schemes, reduced investments, and withdrawn its 2019 dividend in order to ensure the future of the business.
Though global operations are challenging, the company already sees signs of improvement within the industry. While in their native France, much of this centres around the government’s tourism support programme, the company’s Chinese hotels are noting a recovery in RevPar.
This is further bolstered by Accor reopening 250 hotels since the end of April. Approximately 42 per cent of the company’s total supply is active.
Though the global crisis continues, tourism is beginning to see signs of survival. Parts of UK hospitality may reopen in July according to the Prime Minister, with research demonstrating a desire for long stays and a possibility of quick local market recoveries.