ACCOR UNVEILS ITS STRATEGIC PRIORITIES AND ITS MEDIUM-TERM GROWTH AMBITIONS
During a Capital Markets Day to be held today at the Group's head office, Accor will present its medium-term ambitions for a new chapter of growth. |
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ACCOR UNVEILS ITS STRATEGIC PRIORITIES AND ITS MEDIUM-TERM GROWTH AMBITIONS
During a Capital Markets Day to be held today at the Group's head office, Accor will present its medium-term ambitions for a new chapter of growth. |
Category: Worldwide - Industry economy -
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This is a press release selected by our editorial committee and published online for free on 2023-06-28
With strong brands and highly skilled teams, a simplified and optimized operating model and processes, Accor intends to accelerate its sustainable growth.
To unlock its growth potential, Accor is taking full advantage of the strengths of each of the two new divisions created in January 2023. For each of them, Accor has defined clear strategic priorities.
The Premium, Midscale and Economy Division (PM&E)
To maximize growth in EBITDA, the Premium, Midscale and Economy division (PM&E) is organized by geography and focuses on three priorities:
- its brands: by consolidating the leadership of its three iconic brands (ibis, Novotel and Pullman), increasing network density thanks to its conversion brands (Mövenpick, Mercure, Handwritten and greet), and strengthening compliance with brand standards.
- its key markets: its biggest and most profitable, by consolidating its leadership in Midscale and Economy, and by seizing growth opportunities in the Premium segment.
- the efficiency of its growth model: to take advantage of scale effects with a clear development strategy, enhancing tools and processes as well as discipline on cost control.
The Luxury & Lifestyle Division
The development of the Luxury & Lifestyle Division, organized by brand, 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:
- the brand promise which guarantees unique experiences with each brand.
- the originality and high quality of products and services as a priority to guarantee customer loyalty, attractiveness for owners and a sense of belonging for talents.
- an ambition to generate strong EBITDA growth.
These two divisions leverage the shared services platform including Procurement, Accor Tech and the Digital & Business Factory.
All Group activities are based around a Sustainable Development strategy with ambitious objectives: trajectory of reducing GHGs in line with the Paris Agreement and validated by the SBTi, 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.
For Sébastien Bazin, Chairman and Chief Executive Officer of Accor: "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 organization, 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. We have set ambitious targets for the coming years: an EBITDA target for 2023 of between €920 and €960 million, an average annual EBITDA growth rate for 2023-2027 of between 9% and 12%, and a return to shareholders of around €3 billion. We have great talents, unique brands, owners’ confidence, efficient digital tools, the energy and the desire. It's now a question of execution."
Backed by its strategic priorities and the current dynamism of its activities, Accor is now anticipating 2023 RevPAR growth of 15-20% compared with 2022 and has unveiled an EBITDA target of between €920 million and €960 million based on the business prospects for the current year detailed hereafter.
Medium term, Accor is targeting sustainable growth and cash generation, notably in the service of shareholder returns. Based on the medium-term prospects described below, the Group is targeting 9-12% annualized growth in EBITDA between 2023 and 2027.
Conversion of EBITDA into recurring Free Cash-Flow is expected to exceed 55% over the period.
The combination of robust performance and a solid balance sheet should enable the Group to return around €3 billion to its shareholders over the 2023-2027 period in line with Investment Grade requirements.
The Capital Markets Day will be broadcast live today from 11:00am (Paris time) : https://channel.royalcast.com/accoren/#!/accoren/20230627_1
A telephone number will be available from 4:00pm (Paris time) for remote participants wishing to take part in the Q&A session, by registering on the following link: Register | Company Webcast BV (loopup.com)
About Accor
Accor is a world-leading hospitality group offering experiences across more than 110 countries in 5,400 properties, 10,000 food & beverage venues, wellness facilities and flexible workspaces. The Group has one of the industry’s most diverse hospitality ecosystems, encompassing more than 40 hotel brands from luxury to economy, as well as Lifestyle with Ennismore. Accor is committed to taking positive action in terms of business ethics & integrity, responsible tourism, sustainable development, community outreach, and diversity & inclusion. Founded in 1967, Accor SA is headquartered in France and publicly listed on Euronext Paris (ISIN: FR0000120404) and on the OTC Market (Ticker: ACCYY) in the United States.
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