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Organizational Reorganization for Accor

New possible organizational structure for Accor which, according to the company, is once again making changes to its organizational structure in a move that could make a possible split of the company easier. From October, the company will be divided into two distinct business divisions. The “Economy, Midscale & Premium” unit will include the Ibis, Novotel, Mercure, Swissôtel, Mövenpick and Pullman brands, covering 4,816 hotels worldwide and 948 new properties under development. The other will be “Luxury and Lifestyle”, which will include the Ennismore joint venture and three other subgroups: Raffles and Orient Express, Fairmont, as well as Sofitel and MGallery.

In total it will feature 488 hotels with 266 new properties in development. The “Economy, Midscale & Premium Division” will focus on four regions: Europe, Latin America, Asia-Pacific and the Middle East, and will be structured around four regional offices: Paris, São Paulo, Singapore and Shanghai. The “Luxury & Lifestyle” unit will instead be organized around the aforementioned brand groups. Indeed, the 8 hubs will be divided into four regions and four luxury and lifestyle markets. The reorganization would be geared towards the goal of simplifying the offer for owners. The “Economy, Midscale & Premium” unit will focus on franchising while the “Luxury & Lifestyle” grouping will aim at management agreements with large investors. In Italy, there are 83 operating hotels (for 10,534 keys) of the Accor group (Chain Hotels Database – Italy® THRENDS).

Of these, excluding the Adagio brand, 86.4% will be part of the “Economy, Midscale & Premium” division, while the remaining 13.6% will be in the “Luxury & Lifestyle” division. It will be precisely the brands in the Luxury & lifestyle category that will catalyze the greatest interest of investors by representing the brands that will see the greatest expansion in our country in the coming years, including: Jo & Joe Roma, Mgallery of Cagliari and Palermo, Orient Express of Rome and Venice and the Tribe of Milan Malpensa and Mestre. Other openings planned, in this case in the other “Economy, Midscale & Premium” range, will be a Mercure in Alba, a Novotel in Milan and the Movenpick in Pisa.

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