AccorHotels, like other
hoteliers, saw somewhat lackluster growth in terms of average daily rate
and occupancy in the second quarter. Yet, the company remains optimistic about
its overall business, which is becoming more diversified.
Systemwide second-quarter occupancy remained flat year over
year at 69.3 percent, while ADR increased 1.7 percent to €81. Overall revenue
increased 2 percent year over year on a like-for-like basis to €1.4 billion.
During Accor's earnings call, CFO Jean-Jacques Morin said
within five years 30 percent of Accor's revenue would be generated from areas
where it's not generated today. That’s the endgame of the investments Accor has
made beyond its hotels.
Last year, the company started adding select
independent hotels to its online marketplace. Morin said there are now
1,600 independent hotels on the platform. On Wednesday, Accor announced it
acquired an 80 percent stake in Paris-based high-end concierge service provider
John Paul for $150 million. That transaction builds on Accor's purchase of Onefinestay
in April, its investments in Oasis
Collections and Squarebreak
in February and its acquisition
of FRHI in December. Accor plans to invest an additional €64 million in
Onefinestay to fuel the company's international development.
Accor's purchase of FRHI, parent company to Fairmont,
Raffles and Swissotel brands, closed on July 12. Hotels in North America, Latin
America and the Caribbean now make up 13 percent of the Accor's global
portfolio, up from 10 percent before the deal. Its Americas portfolio now
stands at 367 properties comprising 74,313 rooms. With 27,461 rooms on the way,
Americas inventory comprises 16 percent of Accor's global development pipeline.
COO for North and Central America Kevin
Frid told BTN at the Global
Business Travel Association conference in Denver this month that while many
acquisitions are about folding one company into another, the Accor-FRHI deal is
more of an "add-on" that will retain the talent from FRHI and grow
Accor's North American footprint. Frid said Accor plans to move its North
American headquarters from Miami to Toronto, FRHI's hometown.