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Accor is set to present its medium-term ambitions for sustainable growth at its latest Capital Markets Day, noting it will “take full advantage” of the strengths of its two new divisions created in January 2023.
Within its Premium, Midscale and Economy Division (PM&E), the group will focus on consolidating the leadership of ibis, Novotel and Pullman, increasing network density and strengthening compliance with brand standards.
It will also consolidate leadership in Midscale and Economy, and seize growth opportunities in the Premium segment. In addition, the group said it will take advantage of scale effects with a clear development strategy, enhancing tools and processes as well as discipline on cost control.
Elsewhere, the group said the development of its Luxury and Lifestyle Division is part of a strategy to “strengthen the identity and appeal of iconic brands, offering unique and innovative experiences”.
The strategic priorities of this division are focused on three areas: brand promise; the originality and high quality of products and services; an ambition to generate strong EBITDA growth.
Accor added that these two divisions leverage the shared services platform including Procurement, Accor Tech and the Digital and Business Factory.
All activities are based around a sustainable development strategy which includes a trajectory of reducing GHGs in line with the Paris Agreement and validated by the SBTi, the implementation of energy and water sobriety plans, elimination of single-use plastics, reduction of food waste and implementation of a voluntary Diversity and Inclusion policy.
Sébastien Bazin, chair and CEO of Accor, said: “Over the past 10 years, Accor has undergone a radical transformation. Now Asset Light, the Group has expanded its brand portfolio to become the leader in Luxury & Lifestyle, strengthened its geographical footprint and simplified its organisation, while preserving its financial independence and the strength of its balance sheet.
“With its two recently created divisions – Premium, Midscale and Economy on the one hand, and Luxury & Lifestyle on the other – the group is embarking on a new chapter of rapid, profitable growth.”
Backed by its strategic priorities, Accor is now anticipating 2023 RevPAR growth of 15-20% compared with 2022 and has set an EBITDA target of between €920m (£791m) and €960m (£825m) based on the business prospects for the current year.
