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Accor has announced it is simplifying its structure by reorganising its brands and creating two distinct business divisions.
Its ‘Economy, Midscale and Premium’ division will include Ibis, Novotel, Mercure, Swissôtel, Mövenpick and Pullman and will incorporate four major regions. It covers 4,816 hotels worldwide with 948 new properties in development.
Meanwhile, the ‘Luxury and Lifestyle’ division will bring together the brands from these segments and will be structured around four brand collections: Raffles and Orient Express, Fairmont, Sofitel and MGallery, and Ennismore. This 488 hotels globally with 266 new properties in development.
The group said it is evolving its structure to “capitalise on the transformation undertaken in recent years, consolidate its leadership positions, focus its efforts, strengthen its know-how, accelerate its growth and continue to improve its profitability”.
It will now leverage the two divisions comprising separate and distinctive expertise with the aim of further strengthening the “excellence” of each of these business lines and improving their operational and financial performance.
Accor said: “Through these two business divisions incorporating growth strategies and trajectories that have been clearly defined and tailored to guest and owner expectations, Accor will offer its partners and investors a clear and transparent model for each of its business lines, which will be a factor in creating value and ramping up the development of its brands and segments.”
Sébastien Bazin, Accor chairman and CEO, said: “Changing our organisational structure is a natural step in the transformation initiated several years ago, which turned Accor into an asset-light group that is more agile and efficient, with a global profile and which has become a key player in Luxury and Lifestyle.
“By evolving from a generalist to a multi-specialist model, our aim is to further improve Accor’s appeal in the eyes of talents, owners, partners and investors. We capitalise on our leadership positions to accelerate our development, better focus talents and expertise, and improve our performance.”
