Accor is the largest hotel group in Europe and sixth largest worldwide. It was founded in 1967 and has grown organically and through acquisitions to operate over 5,000 hotels across 100 countries. Accor underwent a radical transformation from 2015-2019 through asset sales, cost cutting, and refocusing on management contracts and services to increase profitability. While the COVID-19 pandemic significantly impacted Accor in 2020, the company is well-positioned for long-term growth due to strong fundamentals in the hospitality industry and Accor's diverse portfolio and loyalty programs.

1. Case Study in Hospitality Finance
Corporate Restructuring at Accor Group
Prepared by: DR. Tb. Donny Syafardan, SE., MM.
1

2. I. COMPANY BACKGROUND
2

3. Accor, the most diversified hotel group
3

4. Company Profile
4

5.  In 1967, Paul Dubrule and Gérard Pélisson founded the Société d’Investissement et
d’Exploitation Hôteliers (SIEH) hotel group and opened the first Novotel hotel outside Lille in
northern France.
 In 1974, they launched the Ibis brand with the opening of the Ibis Bordeaux.
 The following year, SIEH acquired the Courtepaille and Mercure brands, and in 1980 the Sofitel
hotel brand, which then consisted of 43 hotels.
 In 1982, the SIEH bought Jacques Borel International, then world-leading brand offering
restaurant vouchers.
 In 1983, the group, which had restaurant tickets and hotels, changed its name to the Accor
Group. 1983 Creation of Accor, the new entity counted 440 hotels, 1,500 public or institutional
restaurants, 35,000 employees, & a presence in 45 countries.
 1985 Creation of Formule 1, a new budget chain. Creation of Accor Academy, France’s first
corporate university for service activities.
 1990 Acquisition of the Motel6 chain in the United States. Lenôtre becomes an Accor brand.
 1991 Compagnie Internationale des Wagons-Lits et du Tourisme (CWL) joined Accor.
 The Etap Hotel chain added another economy hotel to the market.
Company History ❶
5

6. • 1999 Accor created the Suitehotel concept: the concept offers 30 sq.m.
suites
• 2000 The Accor real-time reservation website goes online:
accorhotels.com.
• 2002 Opening of the Sofitel Chicago Water Tower and 13 other Sofitel
establishments in major international cities.
• Accor Services acquires Australian HR consulting firm, Davidson
Trahaire.
• 2003 The first Ibis opens in China, in the city of Tianjin.
• 2004 Creation of Groupe Lucien Barrière SAS. Owned 34% by Accor.
• 2005 Opening of the 4,000th hotel, the Novotel Madrid Sanchinarro.
Company History ❷
6

7. • 2006 Sofitel opens a new flagship hotel--the Sofitel Los Angeles.
• A major hotel expansion program is rolled out in India to open 5,000
Sofitel, Novotel, Mercure, ibis and Formule1 rooms within 5 years.
• Accor launches Pullman, a new upscale brand dedicated to business
travelers.
• 2008 Creation of MGallery: a new collection of upscale hotels with a
marked personality. Etap Hotel, the leader in the budget segment,
opens its 400th hotel in Europe . Accorhotels.com available free of
charge on iPhone. Accor announces a major real estate transaction in
the Budget segment in France, with the sale of 158 hotelF1 properties
for €272 million.
• 2010 Demerger of Accor’s Hotels and Accor Prepaid Service
businesses; Accor Services becomes Edenred.
Company History ❸
7

8. • The Suitehotel brand now joins the Novotel family, boasting a new
name, Suite Novotel.
• A|Club celebrates its 2nd anniversary with its nearly 5M members .
• Accor will have 100 hotels operating in Greater China after 25 years.
• TripAdvisor customer opinions are now posted on the website.
• All Seasons: already 100 hotels in just 3 years!
• 2011 UK: Mercure expands with ten new franchised hotels.
• Accor celebrates 25 years of the hospitality industry’s largest
corporate university
Company History ❹
8

9. • In 2011, Accor introduced its new brand positioning with the slogan: “Open new
frontiers in hospitality”.
• In June 2015, Accor became Accor Hotels and adopted a new slogan “Feel
Welcome”.
• In 2019: ALL – Accor Live Limitless. ( See Next Slide)
Company History ❺
9

10. 10

11. Milestone Every Ten Years
11

12. Paul Dubrule and Gérard Pélisson
12

13. 13

14. II. INTERNAL ANALYSIS
14

15. 15

16. 16

17. 17

18. 18

19. 19

20. 20

21. 21

22. Accor Brands Overview
22

23. ❶
23

24. 24

25. 25

26. 26

27. 27

28. 28

29. 29

30. 30

31. 31

32. 32

33. 33

34. 34

35. 35

36. 36

37. 37

38. 38

39. 39

40. 40

41. 41

42. 42

43. 43

44. 44

45. 45

46. 46

47. 47

48. 48

49. 49

50. 50

51. 51

52. 52

53. 53

54. 54

55. 55

56. 56

57. 57

58. 58

59. 59

60. 60

61. 61

62. 62

63. 63

64. 64

65. 65

66. 66

67. ❷
67

68. 68

69. 69

70. 70

71. ❸
71

72. 72

73. 73

74. 74

75. 75

76. 76

77. 77

78. 78

79. 79

80. ❹
80

81. 81

82. 82

83. 83

84. 84

85. 85

86. 86

87. 87

88. 88

89. 89

90. 90

91. 2019 M&F* REVENUE BY REGION
* fees from managed and franchised hotels, including procurement.
91

92. in million of euros 2018 2019
Change (as
reported) (1) Change (LFL) (2)
HotelServices 2,644 2,894 + 9.5% + 4.6%
Hotel Assets & Other 751 1,077 + 43.4% + 2.9%
New Businesses 149 159 + 7.2% + 3.8%
Holding & Intercos (54) (81) N/A N/A
Total 3,490 4,049 + 16.0% + 3.8%
Segmentation information
Consolidated revenue for the first half of 2019 amounted to €4,049 million, up 3.8% like-for-like (LFL) and up 16.0% as
reported compared with first-half 2018.
2019 REVENUE BY BUSINESS LINE
(1) Proforma financial
information.
(2) Like-for-like: at constant
scope of consolidation and
exchange rates. 92

93. III. EXTERNAL ANALYSIS
93

94. AN INDUSTRY BOASTING SOUND FUNDAMENTALS
• 1.5 billion people traveled worldwide in 2019, up from 300 million in
the 1980s;
• Global traveler numbers are expected to hit nearly 2 billion in 2030; (2)
• The number of nights booked in the hotel industry climbed to 8.5
billion in 2019, compared with 7 billion in 2010 (1), and will reach
some 10.5 billion in the coming years;
• Tourism- and travel-related spending has been increasing by 5% per
annum for eight years, and annualized growth is expected to amount
to 4% until 2030; (2)
• Europe received 51% of international travelers.
1. In number of international tourists.
2. Excluding the impact of Covid-19 in 2020
94

95. 95

96. Independent hotels represent the vast majority of the global
offer and very significant development potential for chains
96

97. The hospitality industry is undergoing profound changes
and facing new forms of competition
1. CONSOLIDATION AMONG PLAYERS SEEKING ECONOMIES OF SCALE
M&A strategies are designed to meet several core objectives:
• acquire new geographic growth drivers;
• deepen local hotel networks in fast-growing regions;
• enrich the brand portfolio, be present in new high value-added
segments;
• capitalize on guest loyalty programs;
• leverage synergies and economies of scale;
• expand the range of services on offer;
• enhance the business model and corporate image.
97

98. The hospitality industry is undergoing profound changes
and facing new forms of competition
2. DIGITAL TECHNOLOGY INTENSIFIES COMPETITION IN THE INDUSTRY
In recent years, swathes of digital players have entered the hospitality market
and gradually expanded their business models to take part of the value chain:
• Intermediation by online travel agencies and metasearch engines;
• The emergence of private home rental platforms;
• The emergence of digital disruptors in the tourism industry;
• Convergence of business models;
• Dovetailing of distribution models and emergence of new distributors.
98

99. 99

100. Accor Hotels and its competition
Main global hotel groups (Unit: M €, number of hotels and rooms)
100

101. Top 10 global hotel groups before and after mergers and acquisitions (Unit: number of rooms)
101

102. IV. ACCOR BUSINESS MODEL AND STRATEGY
102

103. A stronger value-creation model
featuring numerous growth drivers
• Accor’s business model is unique in the travel industry. Operating 5,036
hotels in 100 countries, the Group is the leader everywhere in the world
other than the United States and China.
• Boasting unique expertise in hotel operations and high value-added
services, Accor has the market’s most comprehensive portfolio of brands,
all segments combined, and builds its success on the customer experience.
• The experiences offered to travelers match the vision of augmented
hospitality that the Group has been developing for three years, now based
on a comprehensive ecosystem and backed up by a promise: ALL – Accor
Live Limitless.
• A pillar of the Group’s growth, the loyalty of its customers increases its
attractiveness for its hotel and business partners. It supports its organic
development, but also the appeal of its brands and the growth of its fees,
and helps attract the most value-creating business partners.
103

104. 104

105. 105

106. 106

107. 107

108. 108

109. 109

110. 110

111. 111

112. Hotel management and franchise activities
• Under its various
banners, Accor
operates 4,787
privately owned
hotels under
management and
franchise contracts.
• In 2019, these hotels,
which are housed in
the HotelServices
division, accounted
for 96% of the
Group’s hotel
network.
112

113. 113

114. A highly diversified partnership ecosystem
114

115. New Business
115

116. 116

117. 117

118. IV. ACCOR FINANCIAL ANALYSIS
118

119. in million of euros 2014 2015 2016 2017 2018 2019
Consolidated revenue 5,454 5,581 1,646 1,937 3,610 4,049
EBITDA 923 986 494 626 712 825
EBIT 602 665 389 492 550 497
Net Income, Group Share 223 244 265 441 2,233 464
Earnings per share (in €) 0.96 0.88 0.88 1.40 7.61 1.55
Dividend per Share (in €) 0.95 1.00 1.05 1.05 1.05 1.05(1)
1) Ordinary dividend proposed by Accor’s Board of Director and subject to shareholders’ approval at the AGM on April 30, 2019.
Accor Group Income Statement
119

120. in million of euros 2014 2015 2016 2017 2018 2019
Goodwill 701 697 1,496 1,500 2,399 1,995
Intangible fixed assets 283 307 2,401 2,302 2,653 3,049
Property, plant and
equipment
3,157 3,024 562 662 1,192 632
Total financial assets 586 654 844 830 2,516 2,224
Total non-current assets 4,795 4,756 5,545 5,430 9,139 8,869
Total current assets 3,613 3,990 1,861 1,821 3,764 3,274
Assets held for sales - - 4,457 4,824 14 1,761
Total assets 8,755 8,953 11,864 12,076 12,917 13,904
Accor Group Balance sheets - Assets
120

121. in million of euros 2014 2015 2016 2017 2018 2019
Shareholders' equity Group share 3,654 3,762 5,658 5,485 6,328 6,830
Shareholders' equity 3,867 3,987 5,925 5,826 6,436 6,978
Total non-current liabilities 2,958 2,916 2,907 3,287 3,435 4,001
Total current liabilities 1,910 2,031 1,855 1,431 3,039 2,080
Liabilities related to assets held for
sales
- - 1,177 1,532 6 845
Total liabilities and shareholders' equity 8,755 8,953 11,864 12,076 12,917 13,904
Accor Group Balance sheets - Liabilities and Shareholders’ Equity
121

122. 122

123. 123

124. 124

125. (1) Restated and Proforma financial information 125

126. (1) Restated and Proforma financial information 126

127. 127

128. (1) Restated and Proforma financial information 128

129. 129

130. 130

131. (1) Figures for FY16 and FY17 are before IFRS 16 implementation ; (2) Proforma financial information for IFRS 16
131

132. 132

133. IV. ACCOR TRANSFORMATION RESULT
133

134. ACCOR DELIVERED A RADICAL TRANSFORMATION
(1) As of end 2019, adjusted for Orbis and Mövenpick lease portfolio disposals
134

135. 135

136. 136

137. 137

138. 138

139. 139

140. 140

141. V. CLOSING AND CONCLUSION
141

142. 142

143. 143

144. 144

145. Discussion
1. What are the main strengths of ACCOR?
2. Identify the advantages of implementing corporate restructuring
(M&A) done by ACCOR.
3. Explain your short analysis of ACCOR's future growth? (Including
the impact of Covid-19 in 2020)
4. What is your suggestion and anticipation so that ACCOR will
continue to have sustainable growth?
5. Feel free to imagine the future impact on ACCOR creatively!
Please submitted to Pak Suryana, adm MM, at Final Test, take home. Thank you. 145

146. Thank you for your kind attention
146