Accor has formally defined its business model under two new strategies.
The hotel chain has announced two ‘core missions’ with HotelServices focuses on its operator and franchised properties, while HotelInvest will cover its owned and operated hotels.
Each unit will have its own reporting and balance sheet but will report to one single executive committee.
This consists of 10 members including five regional heads.
Under the new strategies the hotel chain will continue to increase its numbers of leases and will not close any owned hotels unless they are hitting its overall performances.
Its new arrangement will be built by geography to minimise running costs, with its brands grouped by segment.
“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,” said Sébastien Bazin, chairman and CEO of Accor. “It requires the in-depth, rapid transformation of both its 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.”