ACCOR has redefined its business model, splitting the company into two divisions based on its core competencies of asset management and services to owners.
HotelServices will be the hotel operator and brand franchisor arm that focuses on fees and P&Ls for the group’s 3,600 hotels under 14 different brands, while the yield-oriented arm, HotelInvest, will act as the hotel owner and investor for its 1,400 owned or leased properties.
Driving Accor’s restructure is Sébastien Bazin, who became the group’s chairman and CEO in August (TTG Asia e-Daily, August 28, 2013). He said: “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.
“(Accor) requires the in-depth, rapid transformation of both its business model and its organisation, 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 maximise value creation for shareholders.”
The French hotel group will move from its current hybrid set-up to a geography-based organisation, enabling decision-making closer to the frontline at lower running costs. The brands will be clustered in three segments – luxury/upscale, midscale and economy/budget – with synergies in support functions across the brands.
Accor will be managed by a new 10-member executive committee, including the five regional heads of operations, and Sven Boinet, who joins as group managing director, chief transformation officer, human resources and legal affairs.