By Joe Stonor
Accor stock hit an 11-month low after a short seller report alleged the company was involved in exploitation of children at Accor hotels.
Shares in the Paris-listed company tumbled 5.9%, or 2.48 euros, to 39.53 euros in afternoon trade in Europe. The stock hit a low of 37.94 euros, marking its lowest level since April last year, earlier in the session.
A report published Thursday by U.S.-based short seller Grizzly Research said it had taken a short position in Accor, and alleged that hotels owned by the group were prepared to accept "highly problematic" bookings involving potential trafficking of children.
"The Group firmly denies involvement in the alleged systemic exploitation of human or child trafficking," Accor said. The company said it is conducting a detailed internal investigation through an external firm to look into the accusations.
If allegations related to problematic bookings are upheld, the group said it would take all appropriate actions and could pursue its own prosecutions.
According to the short seller, Accor Chief Executive Sebastien Bazin had personal ties to convicted sex offender Jeffrey Epstein, which Grizzly Research said it based on recently disclosed Epstein files.
In response, Accor said Bazin had met Epstein once over twenty years ago in a professional context. "The remaining allegations do not in any way establish a link between Jeffrey Epstein and the Group," Accor said in a statement.
Meanwhile, the escalating conflict in the Middle East threatened the hotel group's tourism business in the Gulf. Iranian attacks against Gulf states intensified Thursday, compounding fears that travel to the region isn't safe.
Accor is the most exposed European hotel group to the Middle East, with around 8% of its portfolio located in the region, analysts at Berenberg said.
The conflict could translate to a 2.5-percentage-point hit to the group's first-quarter earnings, Citi analysts said.
Thursday's drop extends the stock's fall to close to 20% since the U.S. and Israel launched attacks on Iran at the end of February.
Write to Joe Stonor at josephmichael.stonor@wsj.com
(END) Dow Jones Newswires
March 19, 2026 11:43 ET (15:43 GMT)
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