Accor says that more than half its hotels are currently closed worldwide, with that percentage expected to grow to over two-thirds in the coming weeks. 

“Over the past three weeks, the [Covid-19] crisis has severely deepened with over half the worldwide population either confined and/or under lockdown,” said the company in a statement. “The abrupt deterioration in the situation has prompted the group to take drastic actions across its global operations.”

Accor has responded with a variety of cost-cutting strategies, including the implementation of a travel ban, a hiring freeze and reduced scheduling and furloughs for 75% of global head office teams for the second quarter, among other measures. Accor estimates that these efforts will result in at least a $65 million reduction in general and administrative expenses for 2020. 

The company highlighted its “strong balance sheet,” which includes cash reserves of more $2.7 billion and an undrawn revolving credit facility of $1.3 billion.

Accor said it is seeing signs of initial recovery in China, where there have been “mild improvements” in hotel occupancy and food-and-beverage sales.

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