Accor Hospitality: The New Hotel Business Model

Accor Hospitality: The New Hotel Business Model

On Monday, October 22 and Tuesday, October 23, 2007, Accor is holding a two-day event for institutional
investors and financial analysts to present the new business model for its Hotels division and measure its
impact. The event is designed to share Accor’s strategic vision of its Hotels division, and better understand
the different components that constitute “the Right Approach” that will make Accor’s Hotels business more
profitable, less cyclical and well appreciated by its clients.
Supply and demand: changes in the global marketplace
Between 2006 and 2012, the number of overnight stays in chain hotels is expected to rise by 5.7%* a year,
compared with an increase of 3.7%* a year for the market as a whole. To optimize its positioning in an
environment shaped by deep-seated change in hotel supply and demand in both mature and emerging
markets, Accor has organized its strategy around five priorities:
- Increase market share in the European Midscale segment through a more segmented offering
(Suitehotel and Adagio on top of Novotel and Mercure)
- Increase market share in the European Economy segment through a more segmented offering (All
Seasons) and in the Budget segment with new-builds (Etap)
- Strengthen Motel 6’s position in North America through franchise contracts by capitalizing on a new
room concept and building
- Grow Accor’s footprint in emerging countries, where demand for standardized products is rapidly
increasing, with Ibis in the Economy segment and Novotel in the Midscale segment
- Reposition and segment the Upscale (Pullman) and Luxury (Sofitel) brands worldwide in order to
cover more fragmented demand for products and services.
*Source: Estin & Co
Press Release
Paris, October 23, 2007