Accor’s new CEO Sébastien Bazin unveiled a new strategy for the company’s growth as he surprised investors and announced that he will spilt the company into two distinct tracks. HotelServices will act as the hotel operator and franchisor division while HotelInvest will serve as the owner and investor track.
Although Accor’s previous leadership said the company would focus on an asset-light strategy and sell off assets, the new plan is to hold onto hotels that it currently owns unless they are underperforming. HotelServices will operate nearly 3,600 hotels and 460,000 rooms under 14 brands, and HotelInvest will start with a portfolio of 1,400 hotels, of which nearly 300 are in full ownership.
“With this new strategy, our aim is to unlock Accor’s full potential through its two core activities and maximize value creation for shareholders,” said Bazin.
But it looks like the new strategy is disappointing investors. According to this article from the Financial Times, the French hotel group’s share price almost 7.5 percent following the announcement.