Accor est l'hospitalité. France's Accor is one of the world's leading hotel operators and the market leader in Europe. Present in more than 90 countries, it owns or manages more than 3,500 hotels worldwide. Its hotel brands range from luxury to budget and include Sofitel (upscale), Mercure (midscale), ibis (economy), and hotelF1 (budget). About two-thirds of its hotels are located in France and other European markets; a quarter are located in Asia/Pacific. The remainder are dispersed throughout Africa and the Middle East, Latin America and the Caribbean, and North America.
Accor operates in more than 90 countries. International expansion is focused on emerging markets such as China, Brazil, and India. By 2015 Accor intends to have 200 hotels in China (up from 100 in 2010) and 225 hotels in Brazil (up from 143 in 2010). It also wants to be the number one international operator of hotels in India, with 90 hotels in that country by 2015.
In 2011 the company's overall revenue increased by 5.2% to €6.1 billion, due to higher room prices and increased demand at its upscale hotels and non-US budget chains. Despite the revenue growth, the company reported declines in profits when compared to the prior year. This was mostly because of a €4 billion non-cash gain Accor reported in 2010 after it spun off its Edenred services business. Also in 2011 Accor recorded impairment losses relating to Motel 6. The North American budget hotel chain reported declines in sales in 2011 as Americans traveled less during the uncertain economic environment.
In 2011 Accor opened some 39,000 rooms worldwide, about 89% of which it operates through franchise agreements and management contracts. It is focusing on franchise and management to maintain an asset light portfolio and reduce the risk and high costs associated with real estate ownership. Accor is operating under the goal of becoming Europe's biggest hotel franchiser by 2015. It announced plans in 2010 to invest €1.4 billion ($1.8 billion) on building new hotels over the next five years.
Simultaneously, Accor is divesting certain assets in order to cut costs and reduce its adjusted net debt by €2 billion by 2013. It sold its Motel 6 and Studio 6 budget chains to private equity firm Blackstone for $1.9 billion in late 2012. Motel 6 and Studio 6 formerly operated as part of Accor North America. Prior to that, Accor sold its gourmet restaurant subsidiary Lenôtre to foodservice company Sodexo in 2011. Also that year, it sold its 49% stake in casino group Lucien Barriere to financial holding company Fimalac for €268 million ($350 million). In 2010 it sold its Compagnie des Wagons-Lits onboard rail catering business.
In a major split, Edenred, formerly the services unit that offered prepaid vouchers, separated from Accor in 2010.
Mergers and Acquisitions
In 2011 Accor acquired the hotel management business of Mirvac Limited for €195 million ($254 million) to expand its international footprint and strengthen its position particularly in Australia and New Zealand.
Private equity fund Colony Capital is the company's largest shareholder, with about a 20% stake. – less