Accor To De-Merge Hotel, Prepaid Services

Accor's board of directors on Tuesday voted to split the company's hotel operations and prepaid services operations into two separate companies.

In a nearly unanimous vote, the board decided that the Paris-based Accor's nearly 4,000 hotels—including such brands as Sofitel, Novotel, Adagio, Ibis and Motel 6—and prepaid services would fare better as separate entities. The board said the two businesses lacked "real synergies" and that they would be more attractive to investors as businesses with their own respective business models.

"The demerger would create a new, solid, sustainable growth dynamic for both businesses, each of which is a global leader in its respective business," Accor chairman and CEO Gilles Pelisson said in a statement. "It would also serve as a growth driver for both hotels and prepaid services, offering employees the opportunity to take part in two new entrepreneurial adventures, both of which have bright futures ahead of them."

The board said it would submit the de-merger plan to shareholders for approval before the end of 2010. If they approve the plan, Pelisson would remain the head of Accor's hotel operations, according to the company.