Accor chairman and CEO Gilles P?lisson said there were no real synergies between the Accor Services and Accor Hospitality.
The board of directors of Accor yesterday voted in favour of a split of the group’s hotels business and pre-paid services.
Accor chairman and CEO Gilles Pélisson said: “The demerger would create a new, solid, sustainable growth dynamic for both businesses, each of which is a global leader in its respective business"
The recommendation is pending shareholder approval, with the Accor board planning to submit the proposed demerger to shareholders no later than the end of 2010.
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The proposal will be submitted to employee representatives for consultation “as soon as possible”.
Pélisson added that the demerger would "serve as a growth driver for both hotels and pre-paid services, offering employees the opportunity to take part in two new entrepreneurial adventures, both of which have bright futures ahead of them”.
The review concluded that there were “no real synergies” between Accor Hospitality and Accor Services and that separately, the two businesses would be more attractive to investors.
The recommendation for the split followed months of debate between Accor’s private equity shareholders Colony Capital and Eurazeo — which hold a 30% stake in the group — and its government shareholder with a 7.5% stake.
According to the Financial Times, the two private equity groups have agreed to refrain from selling down their stake in either of the two demerged businesses until January 2012.
Assuming shareholder approval for the split, Pélisson is expected to head the hotels company.
Jacques Stern, who was yesterday appointed Deputy CEO of Accor in charge of Accor Services and Finance following Pélisson’s recommendation, would head the prepaid services and voucher business.
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