Accor is a French company, born after the merger in 1983 between Novotel (created in 1963) and JBI (Jacques Borel International, created in 1967). Today, the company can be found in 140 countries all over the world, hires 168 500 people and had a € 7622 million turnover in 2005. There is the hotel business and complementary services, with 3829 hotels in 90 countries, covering the whole market, from cheap hotels to luxury hotels (Sofitel, Novotel, Mercure, Suitehotel, Ibis, Red Roof Inn, Etap Hotel, and Formule 1). These activities account for a turnover of 1830 millions € in 2005. On the other hand, there are services to businesses and local authorities run by Accor Services. This field serves 13 millions customers in 32 countries and has turnover of 597 millions € in 2005. The Novotel group, forerunner of Accor, opened its first hotels abroad from 1972, only five years after the opening of the first Novotel Hotel in Lille (France). In 1973, Novotel was present in 6 European countries (England, Netherlands, Spain, Switzerland, Belgium and Germany).
[...] The experiment of Accor in Brazil also shows that a successful establishment needs freedom left to the subsidiary company in its strategic choices new hotels will be open from there to 2008, for an investment of almost 300 million euros. This strong increase aims at strengthening the presence of Accor Brazil on all segments of hotel market, from cheapest hotels to luxury hotels. The share of Ibis hotels and Sofitel should increase, unlike Parthenon chain. This strategy shows initially the will of Accor to develop its public image. [...]
[...] In 2005, the middle class accounted for only of the total population in Brazil whereas the weak purchasing power of most people made it almost impossible to pay for hotel nights. For example, a Frenchman with the legal minimum wage could sleep 30 nights in a Formule 1 hotel (the cheapest one), whereas a Brazilian could sleep for 4 nights. In addition, tourism potential of Brazil was barely developed in the 70s, in spite of the international success of the carnival of Rio. [...]
[...] Novotel's European extension was not easy, but setting up businesses in Brazil was much more difficult. Yet, despite initial difficulties, Novotel tried to take into account local specificities and managed to turn an anticipated failure into a success. Today of Accor's employees are located in South America. Difficult beginnings of the Novotel establishment in Brazil The decision to establish Novotel hotels was made during a strong growth of Brazilian economy Brazil was sometimes used as an example, back at the time of the “Brazilian miracle” (between 1964 and 1974), for other developing countries. [...]
[...] Thus, the first three sites of international tourism of Brazil which are Rio de Janeiro, El Salvador de Bahia and Foz de Iguaçu stood in 2005 only for of Accor hotels in Brazil. In the same way, only one hotel is located close to seaside resorts of the Southern coast, a major destination for the middle class of Sao Paulo. On the other hand, the “large Sao Paulo” concentrates more half of the Accor hotels in Brazil. This geographical area gathers most of large companies' headquarters. [...]
[...] With the “rented hotel”, Accor is not owner of the building. The group rents the building to an investor and pays him a fixed or variable rent. Lastly, subsidiary hotel” is owned and run directly by Accor or one of its subsidiary companies. In 1994, Accor held 50% of its hotel rooms. The significant part of the hotels held was explained by the history of the group. Indeed, it was created thanks to internal growth, with from land purchasing and acquisition of hotels. [...]
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