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Company reducing ownership role, increasing franchising
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Accor plans to de-emphasize hotel ownership and shift its emphasis to franchising and operations. The Paris-based hotel group outlined its new business model and strategic plan during a recent investor day.
The company's two-pronged initiative involves selling 450 of the 1,600 hotels it owns or operates under fixed leases over the next three years – a move Accor says will net it up to $2 billion – and increasing its room count by 40 percent, to 700,000, via franchising and management contracts.
“We are moving from being the owner of hotels to the No. 1 manager of hotels,” ceo Gilles Pelisson told The Wall Street Journal.
Accor's move to de-emphasize hotel ownership mirrors similar moves in recent years by a variety of major hotel chains, including Marriott International and Starwood Hotels & Resorts. Accor is detailing its strategies for its hotel operations in preparation for the upcoming shareholder vote next month on plans to split the company's hotel group from its prepaid business services.
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