New CEO restructures Accor to "unlock potential"
Group split into separate divisions: HotelServices and HotelInvest
The new chairman and CEO of French hotel group Accor, Sebastien Bazin, has restructured the group into two divisions based on its core businesses of hotel management and hotel ownership.
HotelServices is a hotel operator and brand franchisor that will be fee-oriented and P&L driven, while HotelInvest is a hotel owner and investor that will be yield-oriented and balance sheet driven.
When Bazin took the helm of Accor on September 1, 2013, following the termination of former chairman Dennis Hennequin's contract back in April, he said he had “acute awareness of the challenges the group faced”.
The new strategy is designed to achieve maximum operational performance and sustainable growth.
Bazin 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 bothits 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.”
Each business unit will have its own reporting, with separate P&L, Cash-Flow statement and balance sheet.
All 1,400 hotels of HotelInvest will be operated by HotelServices through management contracts and in total, HotelServices will operate nearly 3600 hotels under 14 brands worldwide.
Bizin has also dictated that Accor will enforce a value-oriented, disciplined hotel ownership strategy, entailing the end of expansion through leases and no further disposals of hotels, unless they are structurally underperforming assets.
He has also appointed a new 10-member executive committee that will include five regional heads of operations and Sven Boinet, group managing director, chief transformation officer, human resources and legal affairs.