Accor: steps against COVID-19
(CercleFinance.com) - On Thursday Accor's Board of Directors decided to withdraw its proposal to pay the dividend planned for 2019, totalling 280 million euros.
Accor has decided to allocate 25% of the planned dividend (i.e. 70 million euros) to the "ALL Heartist Fund," an ad hoc Covid-19 vehicle that is being launched by the group.
Meanwhile, Sébastien Bazin, Accor's Chairman and Chief Executive Officer, will waive 25% of his compensation for the duration of the crisis, with the equivalent amount also being contributed to the Fund.
Accor has said that it has over 2.5 billion euros in available liquidity, and an undrawn revolving credit line of 1.2 billion euros.
While it is still too early to estimate the duration of this crisis, the Group is already anticipating major repercussions on its performance for 2020, although remains very optimistic about the outlook for the hotel industry, especially of the Group, management said.
The group has also decided to implement significant reduction measures, such as the travel ban, a freeze on recruitment, partial or technical unemployment affecting 75% of its employees at head offices worldwide in the second quarter, generating a minimum reduction of 60 million euros in central costs over 2020.
It also decided to review the recurrent investments planned for 2020, resulting in a reduction of 60 million euros in expenses for the year.
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