Accor Cuts Rent

Accor has followed Quest in cutting rent payments as the hotel sector battles the devastating impact of the COVID-19 ban on travel


Key Points:

  • Accor has followed Quest in cutting rent payments

  • Starting from May they will only be paying 20% of their rent

  • Of Accor's 400 Australian hotels, 60 had closed because of the pandemic


Accor has followed Quest in cutting rent payments as the hotel sector battles the devastating impact of the COVID-19 ban on travel. Accor wrote to landlords noting that starting from May they will only be paying 20% of their rent. Of the 80% not paid, 40% will be waived and the remaining 40% will be deferred over the life of the lease. Simon McGrath, Accor's chief operating officer for the Pacific, said that the group had reduced rent in line with the new code of conduct framework and that of Accor's 400 Australian hotels, 60 had closed because of the pandemic. Accor however did pay its April rent in full, unlike many other groups. Accor also provided specific information about declines in revenue to support its reduced rent intentions - something other groups have refused to do.

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