The abrupt deterioration in the situation has prompted the Group to take drastic actions across its global operations. These actions are indispensable to limit the impact on earnings and cash, and necessary to prepare for the post-crisis recovery. In these unprecedented times, the Group stands more than ever by its employees, partners and communities, providing time, resources and access to its local and global network.
Mitigation measures
- Travel ban, hiring freeze, reduced schedules and /or furloughing for 75% of global head office teams for Q2, resulting in a minimum €60 million reduction in G&A for 2020,
- Reviewed recurring investment plan for 2020 resulting in a €60m reduction in capital expenditures.
Dividend and solidarity measures
After consulting with the Group’s main shareholders, JinJiang International, Qatar Investment Authority, Kingdom Holding Company and Harris Associates, Accor has decided to allocate 25% of the planned dividend (€70 million) to the launch of the ‘ALL Heartist Fund’, a Covid-19 special purpose vehicle. This fund will typically assist:
- the Group’s 300,000 employees, pledging to pay for their Covid-19-related hospital expenses, for those who do not have social security or medical insurance,
- on a case by case basis, furloughed employees suffering great financial distress,
- on a case by case basis, individual partners facing financial difficulty,
- in addition, the Group will further deploy its solidarity initiatives to support front-line healthcare professionals and non-profit organizations.
“Welcoming, protecting and taking care of others is at the very heart of what we do. In light of the urgency and the scale of the situation, we have decided to act in an immediate and meaningful way, in the spirit of our values and commitments. Through this impactful gesture, we wish to express our solidarity and gratitude to all those demonstrating courage and selflessness during this crisis. On behalf of the Board, I would like to thank the Group’s main shareholders. Without them, the ‘ALL Heartist Fund’ would not have been possible. I also want to pay a special tribute to the Accor teams around the world. They are facing the current crisis with admirable courage, dedication and professionalism. As our industry is going through tough times, we have to make tough decisions, but Accor has a strong balance sheet which will enable it to withstand this crisis and emerge with strength during the recovery period. I am confident that Accor will soon rediscover the road to growth,” said Sébastien Bazin, Chairman and CEO of Accor.