Best Holiday Lettings

Tag: management contracts

  • Accor chief ousted over slow turnaround

    Hotel giant Accor has ousted chief executive Denis Hennequin following a disagreement over the pace of change on the largest hotel chain in Europe.

    A transitional team, headed by chief operating officer Yann Caillere, who takes the role of chief executive, was installed charge.

    Board member Sebastien Bazin, head of Colony Europe, was named vice-chairman to exchange Philippe Citerne, who becomes non-executive chairman.

    Hennequin becomes the third chief executive to be ousted from Accor since Usa-based Colony Capital invested within the group in 2005.

    He was hired in 2010 to accelerate an asset light strategy designed to cut back exposure to capital intensive owned hotels in favour of franchises and management contracts.

    However, stakeholders are believed to have lost patience with the rate of change, with Accor shares down five per cent in 2013.

    During his tenure Hennequin sold loss making budget hotel chain Motel 6 for $1.9 billion.

    He also disposed of gourmet caterer Lenotre and a stake in casino group Lucien Barriere, making Accor a pure hotel operator.

    In February, Hennequin launched a 3-year plan to minimize exposure to a weak Europe.

    Instead plans were installed place to step up expansion in emerging markets, while accelerating its move toward franchising or managing hotels for others to lift profit margins.

    “The directors came to the joint conclusion in regards to the group’s situation: that the method adopted is the correct one and that it’ll remain unchanged,” Accor said in a press release.

    “However, given current economic conditions and the rapid transformation of its competitive environment, Accor must accelerate the implementation of this strategy with the intention to reinforce its positions.”

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  • Accor seeks to expand luxury offering in emerging markets

    French hospitality group Accor has outlined its ambitions for the posh/upscale market, stating it hopes to extend its current network of 300 hotels within the segment to 400 properties by 2015.

    The group has adopted an extra strategy to luxury, in keeping with its French origins, that places boldness on the heart of hospitality.

    On a highly segmented market, each of Accor’s complementary brands – including Sofitel, MGallery and Pullman – is punctiliously positioned to satisfy the complete range of clients’ and owners’ needs.

    “One can now assume a powerful European voice within the luxury and upscale market.

    “Our brands combine one of the best of international standards and an audacious interpretation of the universal essence of luxury as a result of our French origins,” explained Yann Caillère, Accor president.

    “Our ambition for our brands and their network are immense and we’re perfectly tailored to expand rapidly in this market.”

    With strong leadership positions in Latin America, Middle East Africa and Asia Pacific, Accor is amazingly well positioned to capture the brand new and rapidly growing demand from emerging market clients, searching for an additional experience of luxury and high-end hospitality.

    Currently, 42 per cent of the group’s luxury/upscale hotels can be found in Asia Pacific and 35 per cent are in key
    European cities.

    Development can be conducted in asset light with a prominence of management contracts, the group’s preferred model at the luxury/upscale segment.

    Focus may be on emerging markets, including Latin America, Middle East and Asia Pacific which counts, by itself, over 60 per cent of the present pipeline (key countries include China, Vietnam and Indonesia).

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