Registration Document 2013
Strategic Vision and Outlook
HotelInvest brings together all of our operations as a hotel owner
and lessee. At end-2013, the HotelInvest portfolio comprised
1,387 hotels, of which 278 owned, 345 under fixed leases and 764
under variable leases. Europe accounts for 85% of the portfolio, a
percentage that is likely to increase in the coming years, and the
Economy and Midscale segments account for 95%.
In 2013, owned hotels generated 54% of net operating income
(EBITDA less maintenance expenditure), compared with 46%
for leased hotels. The medium-term objective is to increase the
contribution from owned hotels to 75%.
Significant room for improvement through lease contract restructuring
- 5 %
- 12,7 %
Owned & leased
business is divided into two segments:
income from owned and leased hotels;
other businesses, which includes operations related to the
hotel business, such as HotelInvest head offices, construction
and shared services, and non-strategic operations, such as the
casinos, the Orféa business in partnership with French National
Railways SNCF, and Orbis Transport.
strengthen its position as the
leading hotel investor
economy and midscale segments
positions in emerging markets;
cash flow generation
and reduce earnings volatility,
particularly by reducing the number of lease contracts.To achieve
this objective, certain hotels have been earmarked for restructuring
and lease contracts will not be systematically renewed when
they expire. In addition, hotel development will no longer take
lease contracts, except for contracts on which Accor
has already made a commitment;
manage and rationalize the asset portfolio, with a focus on
through the strategic allocation of capital expenditure;
support the Group’s growth strategy, by holding a
portfolio of profitable hotel property assets.
HotelInvest will keep the vast majority of owned hotels, limiting
property sales to hotels that are performing well below average.
HotelInvest is also responsible for allocating maintenance and
development expenditure and may decide to acquire other hotel
properties to drive further value creation.
Performance indicators aligned with
HotelInvest’s unique business features
Like HotelServices, the HotelInvest property business benefits
from specific performance indicators based on both operational
and financial criteria.
Portfolio and asset management.
Allocation of capital expenditure.
Net operating income, with the objective of increasing the
contribution from owned hotels to 75% from 54% in 2013.
Generation of free cash flow.
Optimization of Net Asset Value.
Return on capital employed.
Adjusted net debt to EBITDAR ratio.
These indicators, which are mainly balance sheet and cash flow
driven, are used to calculate incentives for HotelInvest executives.
With HotelServices and HotelInvest, Accor now has a clear,
long-term vision supported by a simple, agile organization. These
two strategically aligned businesses leverage dedicated teams
within a unified Group to deliver optimal operating performance
and sustainable growth for employees, partners and shareholders.