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(December 2009) posted on Thu Dec 17, 2009 EST

Shareholders to vote next year on de-merger proposal

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Accor's board has voted to separate the company's hotel and prepaid services business units into independent companies. The board took that action after studying the issue for several months.

Two major Accor shareholders -- U.S.-based private equity firm Colony Capital and European investment bank Eurazeo (RF.FR), which together own around 30 percent of the company -- have been pushing for the split, which they said would make it easier for investors to value the businesses. Paris-based Accor said it expects to put the de-merger plan to shareholders before the end of 2010.

“The de-merger would create a new, solid, sustainable growth dynamic for both businesses, each of which is a global leader in its respective business,” chairman Gilles Pelisson said in a press release. "It would also serve as a growth driver for both Hotels and Prepaid Services, offering employees the opportunity to take part in two new entrepreneurial adventures, both of which have bright futures ahead of them."

Accor's hotel operations include the Sofitel, Pullman, MGallery, Novotel, Mercure, Suitehotel, Ibis, all seasons, Etap Hotel, Formule 1 and Motel 6 brands, representing 4,000 hotels and nearly 500,000 rooms in 90 countries. It services operations include employee and constituent benefits, rewards and incentives, and expense management for 32 million people in 40 countries.