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Open New Frontiers in Hospitality Yugi Chen
Thang HuynhKristi Kaarlop
Audrey RobertsSamat Teberdiev
Agenda
Company Presentation
Interview with Associate Director of Sales
Summary
Questions
Company Values
Innovation is our trademark
The spirit of conquest is our growth engine
Performance is the key to our continued success
Respect is basis of all our relationships
Trust is the foundation of our management
History of the Company 1967 First Novotel
opens in Lille Lesquin.
Creation of Novotel – SIEH by Paul Dubrule and Gérard Pélisson.
Lille Lesquin
1974 First ibis opens in Bordeaux
1975 Acquisition of the 3-star chain, Mercure.
History of the Company 1980 Acquisition of Sofitel, the jewel of 4-star French
hotels.
1983 Creation of Accor, the new entity counted 440 hotels, 1,500 public or institutional restaurants, 35,000 employees, & a presence in 45 countries.
1985 Creation of Formule 1, a new budget chain. Creation of Accor Academy, France’s first corporate university for service activities.
1990 Acquisition of the Motel6 chain in the United States. Lenôtre becomes an Accor brand.
1991 Compagnie Internationale des Wagons-Lits et du Tourisme (CWL) joined Accor.
The Etap Hotel chain added another economy hotel to the market.
History of the Company 1999 Accor created the Suitehotel concept: the concept
offers 30sq.m. suites
2000 The Accor real-time reservation website goes online: accorhotels.com.
2002 Opening of the Sofitel Chicago Water Tower and 13 other Sofitel establishments in major international cities. Accor Services acquires Australian HR consulting firm, Davidson Trahaire.
2003 The first Ibis opens in China, in the city of Tianjin.
2004Creation of Groupe Lucien Barrière SAS. Owned 34% by Accor.
2005 Opening of the 4,000th hotel, the Novotel Madrid Sanchinarro.
History of the Company 2006 Sofitel opens a new flagship hotel--the Sofitel Los Angeles.
A major hotel expansion program is rolled out in India to open 5,000 Sofitel, Novotel, Mercure, ibis and Formule1 rooms within 5 years.
Accor launches Pullman, a new upscale brand dedicated to business travelers.
2008 Creation of MGallery: a new collection of upscale hotels with a marked personality. Etap Hotel, the leader in the budget segment, opens its 400th hotel in Europe . Accorhotels.com available free of charge on iPhone. Accor announces a major real estate transaction in the Budget segment in France, with the sale of 158 hotelF1 properties for €272 million.
2010 Demerger of Accor’s Hotels and Accor Prepaid Services businesses; Accor Services becomes Edenred.
History of the Company The Suitehotel brand now joins the Novotel family,
boasting a new name, Suite Novotel.
A|Club celebrates its 2nd anniversary with its nearly 5M members .
Accor will have 100 hotels operating in Greater China after 25 years.
TripAdvisor customer opinions are now posted on the website.
All Seasons: already 100 hotels in just 3 years!
2011 UK: Mercure expands with ten new franchised hotels.
Accor celebrates 25 years of the hospitality industry’s largest corporate university
History of the Company ibis: already 900 hotels throughout the world!
MGallery opens its first hotel in London
Adagio acquires Citéa and becomes the European no.1 in the extended stay segment
Amsterdam : inauguration of the first Sofitel Legend in Europe
Accor wins the Recognition and Commitment prize at the 2011 Human Capital Trophy
Accor’s commitment and responsibility rewarded three times with the World Savers Awards
Opening of the World's first ibis budget Hotel in Tangier, Morocco
Accor: Le Card
Organization
Global HQ:Immeuble Odyssey110, Avenue de France75210 Paris Cedex 12,
FranceMain: +33 1 45 38 86
26
Corporate Office:Accor North America4001 International
ParkwayCarlton, TX Main: 972-360-9000
Organization
Denis Hennequin Yann Caillere
Greg Champetier
Dominique Esnault
Chairman and CEO
President and Chief Operating
Officer
Global Chief Marketing Officer
Global Chief Operating Support
Organization
Pascal QuintAntoine Recher Sophie Stabile
Marc Vieilledent
Corporate Secretary
Global Chief Human
Resources Officer
Global Chief Finacial Officer
Global Executive VP Asset
Management
Board of Directors
Denis Hennequin: Chairman and CEO of Accor Jean-Paul Bailly: Chairman and CEOof the La
Poste Group Thomas J. Barrack: Chairman and CEO of Colony
Capital Sébastien Bazin: CEO of Colony Capital Europe Philippe Citerne: Chairman of Télécom & Mgmt
SudParis Mercedes Erra: Executive President of Euro
RSCG Sophie Gasperment: Executive Chairman of The
Body Shop Bertrand Meheut: Chairman of the Groupe
Canal Virginie Morgon: Executive Board Member of
Eurazeo Franck Riboud: Chairman and CEOof Danone Patrick Sayer: Executive BoardChairman of
Eurazeo
Stock Information
Ticker: AC
Exchange: NYSE Euronext Paris
Price: €24.60/$30.77
Market Cap: $8.13 B
#1365 on Forbes Global 2000
As of April 2012 sales is 7.9B
Is confident in boosting dividends in 2012
Stock Information
Among Accor shareholders are a French investment firm and an American real
estate investment firm.
Top 5 US Markets/CountriesEurope region contributes the largest share of
revenues.
Hotel Stats- YE 2011
4,426 Hotels/531,714 rooms in 90 countries
€6.1B in Consolidated Revenue
€27 M in Net Profit
€433M in Operating Profit before Tax and Non-recurring items
€4.5B Market Capitalization
Hotel Stats- Summary
Hotel Stats- Region
Hotel Stats- Brands
Hotel Stats- Region
Number of Hotels and Location
Competitive StrengthsStrong Brand and Marketing
• Full range of hotel offerings caters to all customer/market segments
• Effective loyalty program launched in September 2008. A|Club has 6 million members.
• Recognized trong brand: Sofitel, Mecure, Ibis, Motel6
Competitive StrengthsStrong Booking, Distribution System, Sales
Team• Centralized booking system: Travel Accor
Reservation System (TARS)• TARS connects connects to wide range of
distribution channels-web, 6 call centers, partners, network of distribution partners worldwide.
• 43% of consolidated revenue booked through TARS
• Accorhotels.com—the online sales generated 23% of hotel revenues.
• 34 sales team offices managing over 500 strategic accounts
Competitive StrengthsFocus on Employee Training
• 17 Accor Academies• Training takes place at academies, online and
at the hotels themselves.• Awarded the 2011 Diversity Training award
for e-learning training on diversity management.
Competitive StrengthsCentralized Purchasing Reduces Costs
• 200 buyers worldwide based in 20 countries• Consistent brand standards and quality while
complying with local regulations• 100 product families• Buying power reduces costs• Can be flexible in providing global solutions
or addressing local market needs.
Financial Information Accor has increased their profits 18.8% over
the past year
Europe’s largest hotel operator – 70 % of sales come from Europe
Accor shares have gained 34% this year – business held up despite faltering European economy
Revenue Streams
Europe region contributes the largest share of revenues.
Revenue Streams
Upscale & Midrange brands contributes the largest share of revenues.
Assets
$6B in Assets Owned.
Managing Company
Accor manages their owned and leased hotels.
They manage over 2,700 hotels through owned or leased properties and management contracts.
Purchasing and Funding of Hotels Financing through banks or through the issue of
billets de trésorerie (commercial paper) in France and bonds in both French and international markets.
Finance assets and operating requirements in local currency to provide a natural hedge and avoid currency risk.
Also using cash from dispositions to fund hotel acquisitions.
Fitch and Standard & Poor’s Debt Rating: “BBB- Outlook Stable Rating”
Own a Franchise
Franchisor for 45 years
Over 1,100 franchises in North America
Wide variety of brands to choose from
Price: 795 to 3300/room for the entrance fee, annual royalties from 5- 8% of revenue, cost of bringing the hotel up to brand’s standards.
2011 – opened 318 hotels worldwide (38,600 rooms)• 54% franchise
agreements• 46%mid & upscale
brands & 54% economy
• 33% in Asia Pacific Region
Other Businesses
In 2010, the company divested its other businesses.
RESTAURANTS
TRAVEL AGENCES
ONBOARD RAILWAY SERVICES
CASINOSTHALASSA
INTERNATIONAL SPA
Other Businesses
The Divestiture Process
Other Businesses
Restaurants
Over 6,000
Lenotre Pizza del ArtE
BOEUF JARDINIERCAFÉ ROUTE
ACTAIRTERMINAL
MEDA’S GRILLSSeafood broilerFrance Quick
Free-timeL’arche L’ecLUSE
Travel Agencies
Over 1,000
Carlson Wagonlite travel agency
Africatours
Americatours
Asiatours
Other Businesses
Other Businesses
As of September, 2011, Accor is a “100% hotelier”.
New Projects
The hotel plans to open609 hotels and 104K rooms
78% of expansion will be through management contracts and franchises.
45% of Accor’s development will be in Asia-Pacific1. 100 new hotels in China in the next 2-3 years2. 20 new hotels in Indonesia in the next 2-3 years3. Acquired 6,100 rooms with acquisition of Australia
hotel company Mervac in 2011
23 new hotels in the Middle East in the next 3 years
New Projects
New Projects- Frankfurt Sofitel at Alte Oper, Frankfurt/Germany: The
150-room luxury hotel will open in autumn 2014
New Projects- Dubai
Sofitel on Sheikh Zayed Road, Dubai/UAE: The 582-romm luxury hotel will open in the summer of 2012.
New Projects- Hainan Sanya Sofitel Resort
Hotel & Villas, Hainan/China: the hotel comprised of 488 rooms, suites, and villas will open in the fall of 2012.
Hotel Ratings: Sample
Number of Employees
Number of Employees: 145,000 in 90 countries
Employee Benefits
Employee Benefits Birthday paid day off
Carte Bienvenue
Guest for a night
Anniversary Bonus
Academic Accor: in house training academic
Employee Awards: Employee of the Quarter/Year
Employee Facility: staff lounge and changing room
Community: Foundation
“Linking cultures and providing support for the development of individuals and their
integration into their environment”.
Community: Foundation Accor Foundation created in 2008
Supports projects proposed by employees
http://www.fondation-accor.com/en/
Community: Foundation
Community: Foundation
Community: Local Know-How
Community: Training & Insertion
Community: Humanitarian and Insertion
LEED Certified
Motel 6 in Dallas, TX: first Accor hotel in
the USA to earn LEED certification
Clean, renewable wind energy powering all 9 Sofitel properties in
the U.S.
Environmental Policy Global Reforestation Project (over 2 million
trees planted already)
Earth Guest Program
Plant for the Planet Initiative
Planet 21: 7 Pillars and 21 Commitments
Environmental Policy Plant for the Planet
“5 towels reused = 1 tree planted."
The Project invests 50% of laundry savings generated by towel use when a guest stays longer than one night, sign says
Environmental Policy
Earth Guest Program
Was launched in 2006, with the motto:
“THE EARTH IS OUR HOST. WE
HOST THE WORLD.”
Environmental PolicyTo enhance performance Accor reaffirmed its
commitments with a new sustainable development program PLANET 21.
Environmental PolicyPLANET 21 is built on seven pillars – Health ,
Nature, Carbon, Innovation, Local, Employment and Dialog – and expresses 21 commitments.
7 Pillars & 21 Commitments
Environmental Policy
• Clean environment• Well rounded meals• Disease prevention
•Reduce water consumption•Recycling Programs•Protecting Biodiversity
•Reduced energy consumption•Reduced CO₂ emissions•Renewable Energy Sources
Environmental Policy•Eco design•Sustainable building•Hotel offers and technologies
•Protect children from abuse•Responsible purchasing practices•Protect ecosystems
•Support employee growth & skills•Diversity an asset•Improve quality of work life
•Conduct business openly•Engage franchised & managed hotels•Share commitment with suppliers
Brands
Partnerships
Reciprocal discounts for car rentals for hotel guests and vice versa.
Partnership between Air France loyalty program Flying Blue and A|Club where members of both can convert points
Customers of the French train company get a 10% or 5% discount at Accor hotels.
Partnerships
Hotel discounts when high speed train ticket and rooms are booked together in the four countries where Thalys operates.
Customers of the Belgian train company get a 10% or 5% discount at Accor hotels.
Provides WiFi access at French Accor hotels.
Partnerships
Software are provided in business centers and Xbox in certain hotel lobbies.
LCL loyalty provides free hotel stays as a reward.
Premium Mastercard customers get special offers from time to time.
Partnerships
Accor has sponsored the Evian Masters women’s golf tournament since 2006.
Nespresso coffee is exclusively served in Pullman hotels.
This French international news channel is shown in many Accor hotels.
Partnerships
The French programming channel is shown in most Mercure, Novotel,Pullman and Sofitel hotels around the world.
Strategy
Strategy
Bolster and Modernize Brands• Model reposition luxury brands – modeled
after Sofitel• New brand architecture for economy hotels
worldwide
Strategy
Build the the Accor corporate brand• Accorhotels.com- direct sales• A|Club rebranded Le Club Accorhotels• “Open New Frontiers in Hospitality”
Strategy
Reduce capital needs and cash flow volality• 2010 to 2012: Dispose of 450 hotels• Reduced adjusted debt by 1.2B in 2011-2012• 2013-2015- Dispose of 175 more hotels• Reduced adjusted debt by 1.0B in 2011-2012
Strategy
Development Growth• Open 40,000 rooms a year in 2012 and 2013• Acquisitions account for 5k rooms a year• 80% of development plan done through
management contracts and franchise agreements
• Strong focus in developing countries especially Brazil, India and China.
Interview
Ms. Joselyn Munoz
Associate Director of Sales Sofitel San Francisco Bay
Direct Tel: 650-508-7145E-mail: [email protected]
Individual Corporate & Negotiated ratesElectronic Arts Account
Interview
Interview
Hotel Sofitel San Francisco Bay223 Twin Dolphin Drive , Redwood City
Interview Questions
Education & Background
Sales and Marketing Organizational structure
Does the company promote from within and does it have a managerial training program
What is the hotel’s competitive set. Do you price rooms based on your competitive set?
What are the biggest challenges in your job?
Do you have an internship program?
Interview Questions
How many people work in the hotel?
How big is the meeting space in the Sofitel?
Do you do more meetings or weddings?
Do you use corporate or your own marketing?
What is your occupancy like?
What are your major budget variables?
Interview
Accor in the News
To implement improved standard competitive with other top tier brands
Stratified itself into three tiers with two new brands, the highest being Sofitel Legends, their flagship palace properties
Future Outlook
Become the European franchise leader.
Become one of the world’s three leading hotel operators.
Summary
Open New Frontiers in Hospitality Yugi Chen
Thang HuynhKristi Kaarlop
Audrey RobertsSamat Teberdiev
