Accor embarks on new organization plan

Accor, one of the world's leading hotel operators, made a major announcement detailing its new reorganization plan that splits the company into two business units: One that owns and invests in hotel assets and the other that operates and franchises properties.
In his first major announcement, since taking over the reins at Accor on Sept. 1, 2013, Sebastien 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 of its business model and 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.”
With this new organization, Accor re-emphasizes the group’s two core competencies — asset management and services — to owners, by separating their functions, missions and targets.
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.
HotelServices is a pure fee-oriented hotel operator and brand franchiser that boasts with strong brands, a winning path in distribution and robust development. It will comprise the management and franchise, sales and 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 percent in the economy segment, 40 percent in the midscale segment and 14 percent on the luxury/upscale segment.
HotelInvest will be a hotel owner and investor, and will comprise the owned and leased, and shared service activities.