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A strategic focus on the brands



Accor intends to leverage its brands and innovative and differentiated products, to capitalize on its “leadership drivers”.



In terms of operations, more powerful brands will enable a stronger revenue growth. Making the brands more attractive will also support human resources initiatives to attract the best talent.



In terms of asset management, more powerful brands will strengthen Accor’s profile and thus its strategy of partnering with leading real estate companies around the world.



Lastly, more powerful brands will enable Accor to speed growth under ownership, management or franchise operating structures.



Accor’s ambition is to make brands even more attractive.



These objectives bring Accor to create a strategic marketing department to know clients better, to favour the creation of innovative products, to advertise on the brands, to promote them through internet portals, and to revitalize loyalty programs.



From brand segmentation to operating structures differentiation



To optimize the hotel portfolio, hotel operating structures must be tailored to individual market segments depending on their return on capital employed.



This rationalization process means that the portfolio must be thoroughly reviewed to identify strategic hotels to be managed under the appropriate long term holding structure and non-strategic hotels that could be sold, either outright or through sale & franchise-back arrangements.



Through this strategy, Accor plans to divest, between 2005 and 2008, around €1,500 million of assets.



New resources



Anticipating changes in global demand, Accor plans to open more than 200,000 new rooms by 2010, mainly in Economy and Budget hotels (50%).



The openings will be in mature countries (33%) and in emerging markets (67%). Overall, 70% of the openings will involve low capital-intensive solutions (management or franchise contracts), while 30% will be either owned or leased properties.

To fit to these objectives, Accor would invest €2,500 million by to 2010 with a target of 15% return on investment.



The Services business



Strategy

Co-Founder & Managing Director - Travel Media Applications | Website | + Posts

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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