With nearly 8 billion Euros in sales, Accor is the European leader in hotels and world No. 1 in business services and public institutions. Major player worldwide, the group is present in 140 countries and employs over 168,000 people.
The Group operates hotel brands present in all market segments and its 3893 facilities are located in 90 countries. Accor is also present in the travel, tourism and recreation industry, with a 50% stake in Carlson Wagonlit Travel (a travel agency, No. 2 in business travel in the world), and even 34% in group Lucien Barriere (casinos and luxury hotels).
The group also offers services to businesses and communities, with over 21 million customers and its leading global service vouchers. In the past 5 years, Accor has focused on three core businesses: hotels, service companies and travel agencies. Restaurants and casinos are two additional activities that enhance the offers of the multi-services group.
For the past 5 years, Accor has refocused on three core businesses: the hotel, service companies and travel agencies. Restaurants and casinos are two additional activities that enhance the offer but multi-service group.
The group's activity can be summarized as follows: the hotel: Upscale and Mid-scale with the Sofitel (High Quality, 9% of rooms), Novotel, Mercure and Suitehotel (medium range); Economy Hotels with the Formula 1, Etap, Ibis; Hotels in the U.S. (economy) with brands Motel 6 Studio 6 (Red Roof was sold in September 2007).
The services are: Human Resource (luncheon vouchers, travel vouchers), plans to motivate staff or customer loyalty, the management of business expenses (gasoline, vehicle maintenance), and social programs (good use of public funds allocated to targeted populations). Accor Services provides design and management of these different products.
This service offering is a feature of Accor over its competitors in the hotel. If these activities represent only 10% of sales, they exude a gross operating margin of over 40%. Moreover, the results of this cluster are uncorrelated from the hotel cycle and are all very recurrent.
Tickets issued by Accor can control the use of expenditures by the organization granting the compensation package (check prefixed with use), and in some cases, tax benefits granted are more attractive to the issuer in this form form of cash. In return for this service, earns a commission Accor editing the title (4%), collects the cash that the company may place until the title is not used and that its repayment is not required. In addition, Accor sees a new commission (1.5%) on repayment of the securities after use.
Tags: Accor Group, activity analysis of the Accor Group, strategies employed by the Accor Group
[...] These acquisitions are a target return on capital of 20% and should increase the sales growth of the division, by per year. Two major acquisitions were carried out: • Acquisition of 50% Accor in Brazil for 197 million Euros (154 million € for the part related to services). This makes Accor the Brazilian market leader with 38% market share with 4 million daily users of a total market of 2.2 € ® of issue volume. • Acquisition of Kadéos (gift certificates) which had a volume of emissions which generated € 336 million and cash of € 175 million in 2006. [...]
[...] (Additional activities for some of the hotel business) Strengths and weaknesses of Accor Highlights: • Large market shares in Europe and the United States, in economy and mid-range hotels. • Services to issue bonds (meal vouchers, gift certificates . ) with strong growth. • Part of the activity is quite recurrent: budget hotels and meal vouchers represent over 70% of operating income. • The hotel activity is well diversified, both in terms of geographic ranges and in terms of price ranges (reduces risk). • Movement during the outsourcing of real estate assets (allows funding for an ambitious development plan) and non-strategic asset sales to come. [...]
[...] It also allows Accor to expand its range of products (new products, i.e. excluding meal ticket and power, now represent 32% of sales from the pole against only 15% in 2003), to diversify geographically (Europe now accounts for 58% of sales from the pole and Latin America and especially to access the network of PPR Group (Fnac, Printemps, Conforama . ) or about 6,500 outlets. Disposal of investments and non-strategic real estate assets: Disposals of non-strategic real estate assets in 2006: • Participation of stake in Compass (world's leading catering) for € 95 million and other smaller holdings for a combined € 128 million. [...]
[...] The sale is subject to a trade agreement concluded for a period of three years and highlights Accor for a capital gain of € 210 million. • Accor sold its budget hotel chain Red Roof (transaction completed in September 2007) to a consortium of investors for € 1.32 billion in April 2007 (335 hotels across the Northeast and Midwest U.S. which generated a turnover of $ 350 million in 2006). • Disposal of the Italian food chain in July 2007 (Ca € 310 million in 2006 to an EBITDA of € 14 million). [...]
[...] This goal is primarily based on the development of the franchise network. To attract franchisees, the group intends to offer an efficient service tool (remodeling of customer loyalty program, cost sharing, management of support functions, sharing know-how and so on . ) as well as attractive brands. This last point explains why Accor Sofitel repositions the brand more specifically in the high-end and plans to resume the Formulae Ibis and Novotel (new room design, communication action). In the U.S., the free development of Motel 6 continues, and the company has created a new brand of non-standard two-star hotels in Europe. [...]
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