Accor has announced a reorganization that will split the company into two businesses, one focused on hotel operation and another centered on hotel ownership and investment. The company also said it is ending expansion through leases and will no longer divest owned hotels unless they are underperforming.
The announcement is the first major shift in strategy for Accor since CEO Sébastien Bazin took over in August.
Accor's new model includes HotelServices, a pure fee-oriented hotel operator and brand franchisor that will operate nearly 3,600 hotels under 14 brands, as well as HotelInvest, a hotel owner and investor that will start with a portfolio of approximately 1,400 hotels of which nearly 300 are in full ownership.
Accor also will move to a geography-based organization that clusters brands in three segments – luxury/upscale, midscale and economy/budget. The company will be managed by a new 10-member executive committee that will include five regional heads of operations and Sven Boinet, who joins Accor as group managing director, chief transformation officer, human resources and legal affairs.
"Accor is a strong and unique group poised to derive benefit from rich opportunities," said Chairman and CEO Sébastien Bazin. "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."
Source: Hotels Mag
