Accor estimates $5 million in virus-related revenue loss in China

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The Fairmont Peace Hotel in Shanghai.
The Fairmont Peace Hotel in Shanghai.

Accor has pegged its revenue losses to date in Greater China at around 5 million euros ($5.4 million), as the hotel company grapples with negative impact from the Covid-19 coronavirus outbreak.

During Accor's full-year 2019 earnings call last week, Accor CEO Sebastien Bazin speculated that those losses could grow, depending on the length of the virus’ spread.

Greater China makes up about 3% of Accor’s systemwide revenue.

“Of course, there is some spillover in between what's happening in Greater China and what's happening elsewhere,” added Bazin. “It has a very different impact in Korea or Japan or Australia or Bangkok or Kuala Lumpur or Singapore. There's a lot of cancellation. There's a lot of rebooking and changing of destination.”

Asia-Pacific accounts for around 31% of Accor’s total room count, as well as approximately 33% of revenue. 

Accor saw RevPAR in the Asia-Pacific region decline 1.9% and 0.9% in the fourth quarter and for the full year, respectively. Companywide, RevPAR was up 0.6% for the quarter and rose 1.7% for 2019.

For the full year, Accor posted a revenue increase of 16% to 4.05 billion euros ($4.4 billion).

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