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 percent of the planned dividend (€70m) 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,
The fund will assist on a case by case basis, furloughed employees suffering great financial distress and assist on a case by case basis, individual partners facing financial difficulty.
This fund reflects the ambition of the Group and its shareholders to provide a meaningful and significant contribution to global solidarity initiatives to address the current health crisis while planning for future needs. This decision has received unanimous support from the Board members, who collectively decided to reduce their attendance fees by 20 percent to the benefit of the “ALL Heartist Fund”. Additionally, Sebastien Bazin, Chairman and CEO of Accor, will forego 25 percent of his compensation during the crisis. The cash equivalent will also be contributed to the Fund.
This “ALL Heartist Fund” complements some of the initiatives which have been spearheaded by a number of hotels throughout the Middle East & Africa, including a collaboration with partner RISMA in Morocco resulting in over 500 rooms provided to front-line medical professionals.
Moreover, following a training by the government in sanitation processes, the Movenpick Aswan team now assists in sanitizing schools, nurseries, Mosques, churches and more than 700 houses within their community. At the Sofitel Luxor Winter Palace, the team prepares and distributes meals daily to medical teams assisting quarantined patients. Lastly, reinforcing proper hygiene and sanitation during this time, bars of soaps and recycled soaps are widely distributed by Pullman Dakar and Movenpick Nairobi to various community groups.
Sébastien Bazin, Chairman and CEO of Accor, commented: “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,” he said.
Thanks to its recent asset-light transformation and cash preservation strategy, Accor can today rely on a strong balance sheet, with more than €2.5bn in cash on hand and an undrawn revolving credit facility of €1.2bn. While much uncertainty remains on the duration of this crisis, the Group expects a severe impact on its 2020 performance but remains bullish on the long-term perspective of the hospitality industry, for Accor, its employees, its owners and shareholders.
