|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||23.22 - 24.54|
|52 Week Range||20.15 - 42.58|
|Beta (5Y Monthly)||1.26|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 04, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||May 10, 2019|
|1y Target Est||49.50|
(Bloomberg Opinion) -- Las Vegas might not sound like the best place to hunker down and get some work done. But hotel groups are hoping to change that.MGM Resorts International is offering a new “Viva Las Office” package, whereby frazzled home workers can swap a view of their backyard for one of the Bellagio fountains. Opt for the top-end “Executive” deal, which starts at $278 a night, and guests can stay at the Vdara Hotel & Spa or the Aria Resort & Casino, work from a lavish suite or an outdoor cabana, and wind down afterwards with a poolside massage. Since the pandemic halted lucrative business travel and overseas vacations, hotels have been confronting their biggest crisis. They’ve had little choice but to get creative in filling all those rooms. That’s why operators from Whitbread Plc’s budget Premier Inn to the luxurious Mandarin Oriental International Ltd. are trying to attract a new clientele: home workers. If they succeed in repurposing their properties, the hotel trade may be an unlikely beneficiary of our shift to flexible working.Most of the focus right now is on the rise of work-from-hotel programs, through which operators not only offer workspace in hotel rooms, but also provide wifi, business support, refreshments and use of other facilities.Accor SA, the French hospitality company, launched Hotel Office in August — and the program is now in around 220 hotels in the U.K. and 70 in the Benelux region. It’s also available in Russia and South America and is being expanded to other markets, including North America, Hong Kong and France.In the U.K., you can work from the group’s five-star Hotel Sofitel St James. For 350 pounds ($455) a day, you get one of the most deluxe suites, along with breakfast, unlimited tea and coffee, lunch and a cocktail in the bar. Or you can go the budget route and work in an Ibis — their offerings start at about 30 pounds per day, roughly comparable to subscribing to a desk in a co-working space.Accor says it’s seeing strong demand from individuals booking a single day to get respite from distracting building work, noisy children and crowded house shares. But companies are also looking for longer-term availability. In Russia, for example, one business booked multiple rooms in an Ibis hotel for two months.Other hotels are partnering with co-working companies to offer workspace in their rooms and suites. Proper Hospitality, which operates luxury hotels in Los Angeles, San Francisco, Austin and Palm Springs, recently teamed up with premium flexible office provider Industrious. Still, selling rooms for the day is less profitable for hotels, typically commanding 50% to 80% of the price of an overnight stay. Then there’s the cost of intensive cleaning. But with hotel occupancy at less than 50% globally in August, according to data provider STR, having some extra customers is better than earning no income at all. Meanwhile, managing room occupancy to maximize profits is a core skill of hotel operators. Richard Clarke, a leisure analyst at Bernstein, says the dream would be to sell a room twice over — once for a daytime worker and once for an overnight stay. Although this struggling industry is a long way from such a happy situation, flexible working may leave a lasting legacy. Up until now, business travel has mainly involved people visiting customers and staying in nearby hotels overnight. Now we’re likely to see a greater proportion of the trade made up of workers coming to spend some time at corporate headquarters.CitizenM, a hip Dutch hotel chain, recently signed a deal to build a 240-room hotel next to Facebook Inc.’s Menlo Park, California, campus. The company is unusual in the industry because it owns most of its hotels. It is backed by Singapore’s sovereign wealth fund, the Dutch pension fund APG and entrepreneur Rattan Chadha, founder of the Mexx fashion brand, so it can afford to take a long-term view. But it’s still a bold bet on more nomadic workforces.It’s even possible that as corporate offices shrink, some vacant floors could be turned into on-site accommodation, which could also be managed by hotel chains. Alternatively, companies cutting back on traditional office space might use hotel facilities when their teams come together.With infections rising across Europe and the U.S., the hospitality industry’s focus is firmly back on navigating the crisis and new restrictions. But there are reasons to think that our great work-from-home experiment could help hotels cope in a post-pandemic world. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
French hotel real estate group AccorInvest is in talks with its banks over a possible restructuring of more than 4 billion euros ($4.7 billion) of debts, financial daily Les Echos reported on its website. AccorInvest owns and operates hotels managed by the Accor group <ACCP.PA> and is present in 31 countries with 904 hotels, for brands including Ibis, Novotel and Mercure. In 2018, Accor opened AccorInvest's capital to sovereign wealth funds and institutional investors and kept a 30% minority stake.
(Bloomberg) -- AccorInvest Group, one of the world’s largest hotel owners, has hired advisers to help fix its balance sheet after the coronavirus pandemic disrupted the travel and leisure industry.The company, which has more than 900 hotels under brands such as Sofitel, Mercure and Ibis, signed up Rothschild & Co. to lead talks with its 19 lenders and evaluate options including raising new capital, according to people familiar with the matter who asked not to be named because the discussions are private.The talks, which are at an early stage, include a range of options from extending maturities to amending terms, the people said. The company has also applied for a 450 million-euro ($530 million) state-backed loan in France, one of the people added.AccorInvest had 2.9 billion euros of bank debt at the end of 2019, of which 931 million euros is coming due next year, according to a financial report from its Luxembourg-based holding company.The talks are part of a multi-pronged plan to ride out the virus crisis, which also includes cost cuts, a review of asset sales and talks with shareholders, the people said.Spokespeople for AccorInvest and Rothschild declined to comment.AccorInvest, like much of the hospitality industry, has seen its finances come under pressure from a collapse in revenues since the pandemic wreaked devastation on international travel. Many companies in the sector have been pushed into asking for respite from creditors or seeking state support. U.K. discount hotel chain Travelodge Hotels Ltd. negotiated a rent cut with landlords, while travel operator TUI AG is getting support from the German government.Read More: Accor Sees $1.65 Billion Share Buyback After Unit Stake SaleAccor Group sold 58% of AccorInvest, its real estate arm, for 4.6 billion euros in 2018. Its shareholders now include Saudi Arabia’s Public Investment Fund and Singapore’s GIC Pte, institutional investors Colony NorthStar, Credit Agricole Assurances and Amundi, as well as private investors. Asking shareholders to inject new funds is among the options being considered, the people said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.