France-based hotel giant Accor on Thursday denied allegations linked to child trafficking and exploitation, saying it has strict safeguards in place as it launched an internal and external review following claims by a short seller.

Accor shares fell as much as 10% earlier on Thursday after the U.S.-based short seller said it had taken a short position in the stock and published a report alleging a lack of safeguards around bookings.

In its report, Grizzly said it had sent reservation requests to almost 250 Accor ⁠hotels ⁠that were designed to raise red flags over human trafficking. Around 40 hotels complied with the requests, it said. Reuters could not independently verify the allegations made in the report.

Accor said it has made the fight against human trafficking and the sexual exploitation ⁠of children a priority and stringent policies and processes were in place, as well as regular audits, the ​last of which was completed in 2025.

It said ​if any allegations were confirmed it would take all appropriate measures and ⁠reserved ‌the right ‌to prosecute parties involved in such ⁠practices.

Accor shares, which have ‌slid since the start of the recent conflict ​in the Middle East, ⁠were trading down 6.5% at ⁠1449 GMT.