After three years of transformation that have resulted in the development of two well-structured, strategically related business lines, AccorHotels is pursuing its strategy of improvement and expansion by initiating a project to create a dedicated subsidiary for its HotelInvest operations.
Through the project Accor aims to strengthen the group’s financial resources in order to accelerate growth, while also providing a legal structure that will ultimately enable third-party investors to hold the majority of HotelInvest's capital.
AccorHotels say it would use the additional financial leeway to develop its two business lines and capitalise on new growth opportunities.
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The restructuring of the HotelInvest portfolio was initiated in 2013, and based on a new organisational model.
Between 2013 and 2015, gross asset value increased from €5.5 billion to €7 billion and the profitability of the portfolio improved as well, with operating margin standing at 7.8% in 2015 (versus 4% in 2013). As a result, HotelInvest is now Europe's leading hotel investor, AccorHotels claims.
The project would now enable HotelInvest to initiate a new phase of growth, by consolidating its existing asset portfolio through renovations, extensions and repositioning, expanding its network through acquisitions and hotel construction, and implementing an assertive asset turnover strategy.
AccorHotels chairman and CEO Sébastien Bazin said: “As the restructuring begun in late 2013 comes to an end in line with the initial timeframe and objectives, turning HotelInvest into a subsidiary is the new step that offers a wealth of opportunities for AccorHotels.”
“By making it possible to bring in new investors for part of our business, this project will significantly increase the resources available to the group to consolidate the respective leadership positions of HotelServices and HotelInvest, while also enabling us to continue to leverage synergies between the two business lines. This way, each business will be able to continue to grow within the group based on a valuation that reflects its specific business model and growth outlook. At the same time, all of our teams will remain under the AccorHotels umbrella brand,” he added.
The project was given the go-ahead by the AccorHotels' board of directors at its meeting on July 12. It is expected to be completed by the end of first-half 2017.
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