Accor restructures into two distinct divisions
Global hotel operator Accor has reorganised the group’s format into two segments: Economy, Midscale & Premium and Luxury & Lifestyle.
The Economy, Midscale & Premium division will include ibis, Novotel, Mercure, Swissôtel, Mövenpick and Pullman and will incorporate four major regions.
While the Luxury & Lifestyle division will bring together the brands from these segments and will be structured around four brand collections: Raffles & Orient Express, Fairmont, Sofitel & MGallery, and Ennismore.
Reasons to restructure
This evolution is targeted at capitalising on the transformation the group has undertaken in recent years, consolidating its leadership positions, focusing its efforts, strengthening its know-how, accelerating its growth and continuing to improve its profitability.
As such, Accor will leverage two divisions comprising separate and distinctive expertise with the aim of further strengthening each of these business lines, improving their operational and financial performance, offering their owners and guests ever more relevant products and services, and attracting the best talents. Accor will finalise the new structure by 1 October 2022.
The new Economy, Midscale & Premium division will cover 4,816 hotels worldwide and 948 new properties in development. This segment will incorporate leadership positions in Europe, Latin America, Asia-Pacific and the Middle East, and will be structured around four regional headquarters based in Paris, Sao Paulo, Singapore and Shanghai. It will focus its strategy on accelerating its development notably through franchises, the rejuvenation of its brands and the industrialisation of Accor’s operating model.
The Luxury & Lifestyle division brings together Accor’s luxury brands as well as the group’s lifestyle entity, Ennismore, in total covering 488 hotels globally and 266 new properties in development. It will be committed to strengthening the identities of its iconic brands, investing in top talents, selecting the best locations and offering unique and innovative experiences.
Through these two business divisions, Accor believes it will offer its partners and investors a clear and transparent model for each of its business lines, which will be a factor in creating value and ramping up the development of its brands and segments.
According to Sébastien Bazin, Accor chairman and CEO: “Changing our organisational structure is a natural step in the transformation initiated several years ago, which turned Accor into an asset-light group that is more agile and efficient, with a global profile and which has become a key player in luxury and lifestyle. By evolving from a generalist to a multi-specialist model, our aim is to further improve Accor’s appeal in the eyes of talents, owners, partners and investors. We capitalise on our leadership positions to accelerate our development, better focus talents and expertise, and improve our performance.”
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