Tag Archives: ALL Heartist Fund

Today more than half Accor branded hotels worldwide are closed, likely over two thirds in the coming weeks. The abrupt deterioration in the situation has prompted the Group to take drastic actions across its global operations; hence it has launched ‘ALL Heartist Fund’, a COVID-19 special financial program. In these unprecedented times, the Group stands more than ever by its employees, partners and communities, providing time, resources and access to its local and global network. Given the situation, the Group has decided to take aggressive, incremental actions. Collectively, these include: travel ban, hiring freeze, reduced schedules and /or furloughing for 75 per cent of global head office teams for Q2, resulting in a minimum €60m reduction in G&A for 2020; reviewed recurring investment plan for 2020 resulting in a €60m reduction in capital expenditures; the Group is further streamlining all other costs (e.g. sales, marketing, IT), in line with lower system wide revenues. In these unchartered territories, Accor’s Board of Directors has decided to complement management actions outlined above, by withdrawing its proposal for a 2019 dividend payment of c. €280m. 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 per cent of the planned dividend (€70m) to the launch of the ‘ALL Heartist Fund’, a COVID-19 special purpose vehicle. This fund will typically assist: 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; on a case by case basis, furloughed employees suffering great financial distress; on a case by case basis, individual partners facing financial difficulty This fund reflects the ambition …

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