Hotel portfolio by segment at December 31, 2014
(% based on number of rooms)
Luxury and Upscale
Differentiated operating structures
Accor hotels are affiliated with the Group via four main operating
structures – franchise agreements, management contracts, leases and
ownership. As part of the Group’s organization into the HotelInvest
and HotelServices businesses, all of the owned and leased hotels
are integrated into the HotelInvest portfolio and are operated by
HotelServices under management contracts.
Franchised hotels are operated by their
owners. Accor provides various services to its franchisees, such as
the use of its brands, first and foremost, and access to the Group’s
centralized booking system. The other services offered to hotel
owners include access to the centralized purchasing system and
to Académie Accor for employee training. Accor is remunerated
for these services via fees, including trademark fees and sales
and marketing fees, as well as through the invoicing of additional
services, where applicable.
Hotels under management contracts are
similar to franchised hotels in that Accor only records the fees paid
by the owner and not the hotel’s revenue. However, these hotels
are managed by Accor. The fees received include the trademark
and sales and marketing fees paid by franchisees, as well as a
management fee corresponding to a percentage of EBITDAR and,
in some cases, an incentive fee subject to performance criteria.
Leased hotels are fully consolidated by Accor, which pays
rent to the owner. The rent can either be fixed or variable. Fixed
rent corresponds to a percentage of asset value, while variable
rent is usually indexed to the hotel’s revenue. For some hotels,
particularly in South America, the rent paid by Accor corresponds
to a percentage of the hotel’s EBITDAR.
Owned hotels are fully consolidated.While Accor only
receives fees from franchised and managed hotels, it records all
of the operating income and expenses in its accounts for owned
and leased hotels.
In developing new hotels, Accor’s strategy is to align their operating
their positioning (luxury and upscale, midscale or economy);
the size of the country and type of economy (developed or
their location (large, mid-size or small city);
their return on capital employed;
their earnings volatility;
their EBIT margin.
In mature markets, the Group prefers asset-light operating structures
management contracts in the luxury segment;
management contracts or franchise agreements in the upscale
management contracts and/or franchise agreements in the
franchise agreements in the economy segment in Europe.
In emerging markets, the Group focuses on:
management contracts in the luxury and upscale segments;
joint ventures with local partners in some countries, like India,
and management contracts in the midscale segment;
all types of operating structures in the economy segments,
depending on the brand and the location in key cities.
As of year-end 2014, 61% of the room base was operated under
arrangements that limited earnings volatility, such as management
contracts and franchise agreements.
Registration Document 2014