Accor Makes Big Reversal On Plan to Divest Hotels
Accor SA, Europe’s largest hotel operator, announced a reorganization that will focus the business on operating and owning hotels, reversing a previous plan to divest properties. The stock fell as much as 5.5 percent in Paris trading.
Accor, based in the French capital, will build two businesses managed by a new executive committee with regional directors, the company said in a statement today. HotelServices will operate 3,600 properties, including Ibis, Novotel and Sofitel hotels. HotelInvest will own and purchase hotels.
The new strategy spells “the end of expansion through leases and no further disposals of hotels, unless they are structurally underperforming assets,” the company said in the statement.
The strategic change is Accor’s first since Chief Executive Officer Sebastien Bazin took office in August after Accor fired his predecessor, Denis Hennequin, in April. Accor was in the first year of a three-year reorganization that included reducing its share of leased or owned properties. Bazin is the former head of European investing at Accor shareholder Colony Capital LLC.
Read full story at: http://skift.com/2013/11/27/accor-makes-big-reversal-on-plan-to-divest-hotels/