France-based Accor, the world’s leading hotel operator, said this week that it was redefining its business model around its two core missions, for maximum operational performance and sustainable growth purpose and sustained value creation.
The company said on Wednesday that it was re-emphasising its two core competencies – asset management and services to owners – by separating their functions, their missions and their targets in order to build a better performing business model.
A new organisation built by geography must be consistent in all markets at lower running costs, the Paris-based hospitality institution said, adding that its brands will, from now, be grouped by segment.
The new strategy also includes, among others, a value-oriented, disciplined hotel ownership strategy, entailing the end of expansion through leases, and no further disposals of owned hotels, unless they are structurally underperforming assets.
“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 chairman and CEO Sébastien Bazin said in a statement.
“It 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,” Bazin added.
Accor, which owns luxury hotels such as Pullman, ibis, Novotel, Sofitel, McGallery, is present in 92 countries (18 in Africa), and a portfolio of nearly 3600 hotels and 460 000 rooms.
For information, log in www.accor.com.
Photo: Pullman Hotel in Dubai, United Arab Emirates