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Redefinition of Accor’s business model around its 2 core missions, for maximum operational performance & sustainable growth. Redefinition of the Group’s business model around its 2 core missions, for maximum operational performance & sustainable growth: HotelServices: a hotel operator and brand franchisor that will be fee-oriented and P&L driven. HotelInvest: a hotel owner and investor that will be yield-oriented and balance sheet driven. · A value-oriented, disciplined hotel ownership strategy, entailing notably the end of expansion through leases, and no further disposals of owned hotels, unless they are structurally underperforming assets. · A new organization built by geography, consistent in all markets, at lower running costs. The brands will be grouped by segment. · A new Executive Committee with 10 members, including the 5 regional Heads of operations. Sébastien Bazin, Chairman and CEO of Accor, commented: "Accor is a strong and unique group poised to derive benefit from rich opportunities. However, it deserves a much higher ambition to create sustained value. It requires the in-depth, rapid transformation of both its business model and its organization, as well as a clear and long term vision, and to stay the course. With this new strategy, our aim is to unlock Accor’s full potential through its two core activities and maximize value creation for shareholders.” A new model, recognizing two mutually reinforcing core competencies With this new organization, Accor re-emphasizes the group’s two core competencies, i.e. asset management and services to owners, by separating their functions, their missions and their targets in order to build a better performing business model. All 1,400 hotels of HotelInvest will be operated by HotelServices through management contracts. Each business unit will have its own reporting, with separate P&L, Cash-Flow statement and balance sheet. They will report to single Executive Committee. The Group will retain key central functions including Finance, HR, Legal and Communication. HotelServices: hotel operator & brand franchisor HotelServices is pure fee-oriented hotel operator & brand franchisor, that boasts with strong brands, a winning path in distribution, and robust development. It will comprise the Management & Franchise, Sales & Marketing, distribution and IT departments. It will operate nearly 3,600 hotels and 460,000 rooms worldwide under 14 brands worldwide across all segments. Its room portfolio will consist of 46% in the economy segment (ibis, ibis Styles, ibis budget, Adagio Access, hotelF1), 40% in the midscale segment (Novotel, Mercure, Adagio), and 14% on the Luxury/upscale segment (Sofitel, Pullman, MGallery, Grand Mercure, The Sebel). This high margin and cash generative business will be driven by three business priorities: · Maximize fee generation, by adjusting our service offer to better meet partners expectations, focusing on fee generation rather than contract wins, and managing costs to optimize results for both our partners and Accor. · Accelerate in CRM, Loyalty and digital services. Resources will be allocated in priority to program & system development, to increase Le Club Accorhotels loyalty members’ contribution to hotel revenues and to foster Revenue Management agility, in order to maximize the top-line, with a better use of OTAs as additional revenue growth partners. · Implement a segmented strategy to strengthen brands § Luxury / Upscale : a service excellence and flagship strategy in key gateways to increase brand equity § Midscale : a focus on innovation to enhance brand offer & differentiation § Economy / Budget : capitalize on ibis megabrand success to secure leadership & scale HotelServices will communicate on selected KPIs to reflect its 100% asset-light profile: system growth, RevPAR and Gross revenue, GOP and drop-through, Net Promoter Score (guest satisfaction), Fee revenue, EBITDA and EBIT margins, as well as Free Cash Flow. Based on 2012 pro forma figures, HotelServices’ revenue stands at €1,119m and EBITDA at €387m. |
