Today in Paris in the context of its Capital Market Day, AccorHotels will reaffirm key components of its strategy and presents its midterm targets for value creation. The Group focus is on the transformation into an asset-light business model and states that its Capital Market Day, today marks its completion.
The execution of this strategy will be fostered by two initiatives:
- The public tender offer for 47% of the share Capital of the Polish company Orbis that AccorHotels does not own today, with a view to replicate of the active asset management strategy implemented by AccorHotels for several years.
- The alignment of the Group’s support functions with its new economic model, notably in Europe, in order to better serve partners and clients, while optimizing central costs, expected to remain stable over the midterm.
Sebastien Bazin, Chairman and CEO of AccorHotels said: “AccorHotels has gone through a major transformation over the last few years. This was evidenced by numerous acquisitions of brands and new ancillary business activities, the strengthening of our digital platforms, and the shift to an asset-light model with the sale of a majority stake in AccorInvest.
“These major steps behind us, we are now focused on executing on our strategy to unleash the Group’s full potential. Our targets are ambitious yet achievable. AccorHotels is more agile, more profitable, and more global, with a well-balanced brand portfolio. These assets are unique in the industry. Combined with a rigorous management, this will enable the Group’s to create sustainable value for our shareholders, our clients and our employees.”
Based on the above, AccorHotels targets the doubling of its EBITDA between 2017 and 2022, to reach €1.2bn, driven by:
The integration and ramp-up of recent acquisitions.
Solid revenue growth, reflecting both sound business levels in the Group’s key markets and the continued increase in development, supported by the upscaling of its brand portfolio.
Operating margin improvement, thanks to strict control of central costs.
Operating performance enhancement, combined with stable CAPEX will lead to sharp increase in recurring cash-flows, and hence the Group’s dividend per share.
Bold targets indeed, the years ahead will see if this can be delivered.
