2009: A YEAR OF CRISIS AND FORCEFUL RESPONSE 2010 ...

accor

2009: A YEAR OF CRISIS AND FORCEFUL RESPONSE 2010 ...

28 ACCOR

DEVELOPING TO PREPARE FOR THE FUTURE

UNLIKE ITS COMPETITORS, ACCOR MANAGES ITS HOTELS IN DIFFERENT WAYS. SOME ARE OWNED WHILE

OTHERS ARE OPERATED THROUGH FIXED OR VARIABLE-RENT LEASES, MANAGEMENT CONTRACTS OR FRANCHISE

AGREEMENTS. THE GROUP’S ASSET-RIGHT STRATEGY CONSISTS OF CHOOSING THE MOST APPROPRIATE OPERATING

STRUCTURE DEPENDING ON THE HOTEL’S LOCATION AND MARKET SEGMENT.

DEVELOPING THROUGH

THE ASSET-RIGHT STRATEGY

While Accor’s expansion was long based

on capital-intensive operating structures

(hotels owned or operated under fixedrent

leases), it now prefers “asset-light”

structures (variable-rent leases, management

contracts and franchise agreements).

That’s why in recent years, the

Group has shifted its focus to hotel operations,

divesting the hotels themselves and

selling its expertise to franchisees.

A PROPERTY DIVESTMENT

STRATEGY

A total of 157 hotelF1 units were divested

in mid-October 2009 and five hotels in

Europe were sold in January 2010,

although Accor continues to manage the

hotels. Real estate transactions of this

kind are intended to reduce earnings volatility

and, most importantly, generate

funds that can be reinvested in expansion

programs. In this way, the Group can concentrate

on hotel management, it’s true

ALL SEASONS

Nantes, France

core business. Accor intends to pursue this

strategy, leverag ing its long-term relations

with institutional investors in Europe.

The goal is to dispose of 450 hotels

between 2010 and 2013.

SETTING THE STANDARD

IN EUROPEAN FRANCHISING

Across Europe, more than one franchised

Accor hotel opened every week in 2009.

This record performance attests to the

strong momentum of the Group’s project

to develop its franchised hotel network.

LUXURY

UPSCALE

MIDSCALE

ECONOMY

AND BUDGET

Management contracts

Franchise agreements

Management contracts

Franchise agreements

Management contracts

Variable-rent leases

DEVELOPMENT: TYPE OF CONTRACT BY MARKET SEGMENT

Franchise

agreements

Variable-rent

leases

Accor has capitalized on its more than 40

years’ experience as a hotel operator to

attract and retain new partners. A wide

range of high valued-added services and

skills are offered to help franchisees

increase revenue, optimize costs, design

and renovate their properties, and train

their employees, with a constant focus on

achieving operating excellence. In this

way, a solid foundation has been laid on

which to build Europe’s leading hotel

franchise company. The goal is to speed

Accor’s development through franchising,

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