Accor: structure evolves, reorganization by ranges
January 06, 2023 at 04:46 pm IST
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Accor announced on Friday the creation of two operating divisions, based on a range-based organization, a new structure that will enable the hotel group to accelerate its growth and better respond to changes in the market.
Since January 1, Accor's activities have been based on two distinct divisions: one dedicated to premium, mid-range and economy, and the other to luxury and lifestyle.
The premium, mid-range and economy division will be headed by Executive Vice President and CFO Jean-Jacques Morin.
It will be structured around four regions (Americas, Europe & North Africa, Middle East, Africa, Turkey & Asia-Pacific and Greater China).
The luxury and lifestyle division will be headed by CEO Sébastien Bazin, and will be centered around four brands: Raffles & Orient Express, Fairmont, Sofitel, MGallery & Emblems and Ennismore.
In a press release, Accor explains that the creation of these two operating divisions, each with identified objectives, will enable it to exploit its portfolio optimally and pursue its development momentum.
In order to operate this new structure, a Group Management Committee chaired by Sébastien Bazin has been set up with the aim of ensuring the coherence and alignment of the two divisions, in terms of both strategy and performance.
The group's new organization - which is being gradually rolled out over the first quarter of the year - should, in particular, provide partners with greater clarity and improved performance.
Following these announcements, Accor's share price was up 1.2% by mid-day Friday on the Paris Bourse, compared with a 0.2% gain for the SBF 120 index.
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Accor is the No. 1 European hotel group. Net sales break down by activity as follows:
- operating hotels under management contract (74.7%; HotelServices);
- owned and leased hotel management (25.3%). In addition, the group offers a business of renting luxury private residences, as well as providing digital services to independent hoteliers, concierge services, etc.
At the end of 2023, the group operates a network of 5,584 hotels (821,518 rooms) distributed primerly between luxury and top-range hotels (978 hotels; Raffles, Fairmont, Sofitel, Pullman, MGallery, Swissotel, Grand Mercure, Mövenpick, The Sebel and Rixos names), mid-range hotels (1,732; Novotel, Novotel Suites, Mercure, adagio, Mama Shlter and Tribe), and economy hotels (2,826; ibis, ibis Styles, ibis budget, adagio access, hotelF1, Formule 1, Jo&Joe, Breakfree and Greet).