Accor CEO: Purging Weak Hotels, Defending European Turf, More Luxury
Photo Credit: Room 1024 at the Fairmont La Hacienda Hotel in La Alcaidesa, Andalucia, Spain. Accor
Skift Take
After years of strategic pivots and playing catch-up, the hotel giant is cleaning house, doubling down on luxury, and expanding in Southeast Asia and the Middle East.
Accor Group CEO Sébastien Bazin has a message for investors: The hotel company's frequent reinventions are done for now.
After a decade of four reorganizations, the Paris-based hotel operator is settling into what Bazin says is a focus on execution.
After Bazin took over Accor in 2013, he transformed the company from a European-focused, midscale operator into a global player with 47 brands spanning everything from budget roadside lodgings to ultra-luxury properties.
Bazin says Accor has a clear, predictable model. The CEO reiterated the financial targets laid out in 2023 for a time span through 2027: revenue growth of 6-10% annually and EBITDA growth of 9-12%.
Bazin spoke on Thursday to the media in New York City, where he and other top executives had begun a roadshow for investors. The CEO talked about the company's missteps, recent gains, and what's next in luxury and lifestyle expansion and its geographical ambitions.
Playing a Game of Catch-UpThe company has spent the past couple of years being "very disciplined on refocusing Accor on the 47 brands, on the geographies, on meeting double-digit growth in revenues and operating income, and less so on doing anything additional," he said.
In a rare moment of corporate candor, Bazin acknowledged Accor has often lagged behind its American competitors on a few metrics.
