IT in Tourism report (2500 words)
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ACCO_RI_2021_MEL_EN_300322.pdf
2021 INTEGRATED REPORT
C=10 M=25 J=65 N=10ACCORLOGO Nº dossier : 18J3476 Date : 4/07/18 Validation DA/DC : Validation Client :
Contents
1 Message for the Chairman 5
2 Corporate Profile 6
3 Trends and challenges 14 3.1 Sector focus 21
3.2 Global environmental and societal challenges identified and addressed by Accor 26
4 Strengths and strategy 28 4.1 Our Strengths 30
4.2 Innovation 42
4.3 Our Strategy 44
4.4 Business model 61
5 Governance and risk management 72
Sébastien Bazin CHAIRMAN AND CHIEF EXECUTIVE OFFICER
4 ACCOR — 2021 Integrated Report
Throughout 2021, Accor demonstrated strength and agility. We turned r e c ove r y i n to o p p o r t u n i t y a n d delivered a performance of which I am proud, while staying true to the values that have defined us for over half a century. I would like to thank our teams, owners and partners for their determination, engagement and kindness. Building on our collective efforts and daring spirit, we are emerging from the pandemic poised to continue capturing the rebound.
The desire to travel has never been stronger. We have been welcoming increasing numbers of guests to our hotels as we reimagined our offering and innovated to meet evolving needs and expectations in ways of traveling, working and socializing.
Accelerating our growth in Lifestyle continued to be key to our strategy. We created with Ennismore the global lifestyle leader, allowing us to deliver enhanced experiences for travelers while creating destination hubs for local communities.
Our strong brand dynamic and network expansion also continued to underpin our growth. We opened close to 300 hotels and enriched our luxury portfolio, announcing the launch of Emblems collection and re-launch of Orient Express. We executed these ambitious new projects while always ensuring our core brands across all segments remained vibrant.
We also focused on developing our powerful hospitality ecosystem, with high value services and experiences.
In 2021, Accor created the Digital Factory and Accor Tech, two new divisions dedicated to enhancing digital services, and also rolled out innovative digital solutions such as our hybrid meeting concept, ALL Connect. Alongside this, we built partnerships to strengthen our future, establishing ourselves as preferred partners for returning large- scale events, and through our loyalty program ALL – Accor Live Limitless.
Accor achieved all of this while ensuring that tomorrow’s hospitality is built on sustainable foundations, and we strive to make a positive impact on people and planet, giving back more than we take. Accor has set some of the most ambitious sustainability targets in the industry, and in 2021, we committed to achieving net-zero carbon emissions by 2050.
Our industry will continue to be blessed because of the incredible dedication of our teams, our most valuable resource. It is vital to me that, across our network, Accor is inclusive, supportive, and full of opportunity for our people. During the year, we continued to invest in Talent, empowering teams, and promoting diversity and inclusion. And at the time of writing, with the tragic escalation of events in Ukraine, the dedication of our teams continues to be of the utmost importance, with the Group concentrating efforts on supporting those severely affected by the war and making sure all our teams, guests and local partners stay safe.
Looking ahead and despite current events, I am deeply encouraged by the industry and the Group’s recovery momentum. As we emerge f rom the pandemic, I see a stronger, more agile Accor, but which remains true to its pioneering spirit, well positioned to capture new opportunities in areas such as demand for experiences and natural destinations. By staying focused on the future and on our vision of a reinvented hospitality, we will continue to be a leader, and I am confident about the road ahead.
MESSAGE FROM THE CHAIRMAN
By staying focused on our vision for a reinvented hospitality, we will continue to be a leader
" Our sector will remain robust
thanks to the incredible dedication
of our teams."
ACCOR — 2021 Integrated Report 5
A c c o r i s a w o r l d l e a d i n g h o s p i t a l i t y group consisting of 5,300 properties and 1 0 , 0 0 0 f o o d a n d b e v e r a g e v e n u e s throughout 110 countries. The Group has one of the industry’s most diverse and fully-integrated hospitality ecosystems e n co m p a s s i n g m o re t h a n 4 0 l u xu r y, premium, midscale and economy hotel b ra n d s , e n te r t a i n m e n t a n d n i g h t l i fe venues, restaurants and bars, branded private residences, shared accommodation properties, concierge services, co-working spaces and more. Accor ’s unmatched position in lifestyle hospitality – one of the fastest growing categories in the industry – is led by Ennismore, a joint venture, which Accor holds a majority shareholding. Ennismore is a creative hospitality company with a global collective of entrepreneurial and founder-built brands with purpose at their heart. Accor boasts an unrivalled p o r t f o l i o o f d i s t i n c t i v e b r a n d s a n d approximately 260,000 team members w o r l d w i d e . M e m b e r s b e n e f i t f r o m the company ’s comprehensive loyalty program – ALL - Accor Live Limitless – a daily lifestyle companion that provides access to a wide variety of rewards, services and experiences. Through its Planet 21 – Acting Here, Accor Solidarity, RiiSE and ALL Heartist Fund initiatives, the Group is focused on driving positive action through business ethics, responsible tourism, environmental sustainability, community engagement, diversity and inclusivity. Founded in 1967, Accor SA is headquartered i n Fra n ce a n d p u b l i cl y l i s te d o n t h e Euronext Paris Stock Exchange (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACCYY) in the United States.
CORPORATE PROFILE
12 %
IMEAT
31 %
ASIA-PACIFIC 13
% AMERICAS
21 %
NORTH EUROPE 23
% SOUTH EUROPE
27 %
LUXURY & UPSCALE
40 %
ECONOMY
33 %
MIDSCALE
Across all continents (as a % based on number of rooms)
110 COUNTRIES
12 %
IMEAT
31 %
ASIA-PACIFIC 13
% AMERICAS
21 %
NORTH EUROPE 23
% SOUTH EUROPE
27 %
LUXURY & UPSCALE
40 %
ECONOMY
33 %
MIDSCALE
Across all segments (as a % based on number of rooms)
MORE THAN
40 BRANDS
More than a hotel Group, Accor is a large ecosystem of brands, know-how and solutions
Corporate Prof ile2
6 ACCOR — 2021 Integrated Report
KEY FIGURES
A NETWORK OF
5,298 HOTELS
(777,714 ROOMS)
No. 1 WORLDWIDE EXCLUDING
THE UNITED STATES AND CHINA
A PIPELINE OF
1,218 HOTELS
(214,000 ROOMS)
REVENUE
+€2.2 BILLION
232,000 COMMITTED WOMEN AND MEN
GIVING LIFE TO THE ACCOR BRANDS
42% OF EMPLOYEES
ARE WOMEN*
46% OF EMPLOYEES
UNDER 35*
3,500 EXCEPTIONAL PRIVATE
RESIDENCES ACROSS THE WORLD
10,000 RESTAURANTS AND BARS
PLANT FOR THE PLANET
7.4 MILLION
TREES PLANTED
29 COUNTRIES
ALL HEARTIST FUND
98,000 REQUESTS SATISFIED
€31.4m 76 COUNTRIES
* Scope: headquarters, owned or leased hotels, and managed hotels.
2Corporate Prof ile
7ACCOR — 2021 Integrated Report
AMERICAS NORTHERN EUROPE SOUTHERN EUROPE IMEAT
LUXURY & UPSCALE
MIDSCALE
ECONOMY
NETWORK in K ROOMS
SEGMENT OPERATING STRUCTURE
HOTEL PORTFOLIO
PIPELINE
37 % 30 %
58 %
12 %
19 %
102
162 180
240
93
44%
14 %
42 %
57 %
1 %
41 %
45 %
6 %
63 % 36 %
1 %
33 %
61 %
59 % 15 %
82 %
3 %
22 %
19 %
ASIA-PACIFIC
34 % 34 %
64 %
2 %
39 %
27 %
FRANCHISED
MANAGED
HOTEL ASSETS
AMERICAS NORTHERN EUROPE SOUTHERN EUROPE IMEAT
LUXURY & UPSCALE
MIDSCALE
ECONOMY
NETWORK in K ROOMS
SEGMENT OPERATING STRUCTURE
HOTEL PORTFOLIO
PIPELINE
37 % 30 %
58 %
12 %
19 %
102
162 180
240
93
44%
14 %
42 %
57 %
1 %
41 %
45 %
6 %
63 % 36 %
1 %
33 %
61 %
59 % 15 %
82 %
3 %
22 %
19 %
ASIA-PACIFIC
34 % 34 %
64 %
2 %
39 %
27 %
FRANCHISED
MANAGED
HOTEL ASSETS
AMERICAS NORTHERN EUROPE SOUTHERN EUROPE IMEAT
LUXURY & UPSCALE
MIDSCALE
ECONOMY
NETWORK in K ROOMS
SEGMENT OPERATING STRUCTURE
HOTEL PORTFOLIO
PIPELINE
37 % 30 %
58 %
12 %
19 %
102
162 180
240
93
44%
14 %
42 %
57 %
1 %
41 %
45 %
6 %
63 % 36 %
1 %
33 %
61 %
59 % 15 %
82 %
3 %
22 %
19 %
ASIA-PACIFIC
34 % 34 %
64 %
2 %
39 %
27 %
FRANCHISED
MANAGED
HOTEL ASSETS
* As a % based on number of rooms.
OVERVIEW
Hotel portfolio and pipeline
Hotel portfolio and pipeline
Breakdown of hotel portfolio*
By operating mode
By segment
Breakdown of hotel portfolio*
By operating mode
By segment
Breakdown of hotel portfolio*
By operating mode
By segment
€111 million in hotel fees
AMERICAS
€91 million in hotel fees
NORTH EUROPE
€141 million in hotel fees
SOUTH EUROPE
Performance and leadership
Hotel portfolio and pipeline
Corporate Prof ile2
8 ACCOR — 2021 Integrated Report
AMERICAS NORTHERN EUROPE SOUTHERN EUROPE IMEAT
LUXURY & UPSCALE
MIDSCALE
ECONOMY
NETWORK in K ROOMS
SEGMENT OPERATING STRUCTURE
HOTEL PORTFOLIO
PIPELINE
37 % 30 %
58 %
12 %
19 %
102
162 180
240
93
44%
14 %
42 %
57 %
1 %
41 %
45 %
6 %
63 % 36 %
1 %
33 %
61 %
59 % 15 %
82 %
3 %
22 %
19 %
ASIA-PACIFIC
34 % 34 %
64 %
2 %
39 %
27 %
FRANCHISED
MANAGED
HOTEL ASSETS
AMERICAS NORTHERN EUROPE SOUTHERN EUROPE IMEAT
LUXURY & UPSCALE
MIDSCALE
ECONOMY
NETWORK in K ROOMS
SEGMENT OPERATING STRUCTURE
HOTEL PORTFOLIO
PIPELINE
37 % 30 %
58 %
12 %
19 %
102
162 180
240
93
44%
14 %
42 %
57 %
1 %
41 %
45 %
6 %
63 % 36 %
1 %
33 %
61 %
59 % 15 %
82 %
3 %
22 %
19 %
ASIA-PACIFIC
34 % 34 %
64 %
2 %
39 %
27 %
FRANCHISED
MANAGED
HOTEL ASSETS
447,188 ROOMS IN MANAGED
HOTELS
307,217 ROOMS
IN FRANCHISE HOTELS
23,309 ROOMS IN AFFILIATE
HOTELS
€518 MILLION
IN HOTEL FEES
~232,000 EMPLOYEES
Hotel portfolio and pipeline
Hotel portfolio and pipeline
Breakdown of hotel portfolio*
By operating mode
By segment
Breakdown of hotel portfolio*
By operating mode
By segment
€77 million in hotel fees
IMEAT
€98 million in hotel fees
ASIA-PACIFIC
AMERICAS NORTHERN EUROPE SOUTHERN EUROPE IMEAT
LUXURY & UPSCALE
MIDSCALE
ECONOMY
NETWORK in K ROOMS
SEGMENT OPERATING STRUCTURE
HOTEL PORTFOLIO
PIPELINE
37 % 30 %
58 %
12 %
19 %
102
162 180
240
93
44%
14 %
42 %
57 %
1 %
41 %
45 %
6 %
63 % 36 %
1 %
33 %
61 %
59 % 15 %
82 %
3 %
22 %
19 %
ASIA-PACIFIC
34 % 34 %
64 %
2 %
39 %
27 %
FRANCHISED
MANAGED
HOTEL ASSETS
2Corporate Prof ile
ACCOR — 2021 Integrated Report 9
An asset-light Group Under its various banners, Accor operates 5,181 privately owned hotels under management and franchise contracts. In 2021, these hotels, which are housed in the HotelServices division, accounted for 97% of the Group’s hotel network in number of rooms.
Powerful digital tools Attract, steer and convert demand Sell in real time/Optimize revenue
Optimizing and personalizing the guest experience Manage the Group’s online reputation/Foster loyalty
Connected hotels Integrated PMS systems to tap
into the hotel’s full potential A CRS to improve guest stays
An effective multichannel distribution system
Well-managed development Facilitate procurement
Support construction and conversion Optimize the hotel concept
to maximize revenue
An enhanced guest experience An effective CRM to maximize the guest relationship
Instant check-in/check-out
Maximized revenue Increase direct online sales with ALL
Boost revenue with a global business network
High-performing sales channels and first-class customer service Optimize revenue with revenue
management solutions Leverage the ALL loyalty program
to secure your revenue Benefit f rom the value of the brand
and increase the hotel’s revenue
Operations made easy Deploy local experts to help
manage your operations Streamline supply and sourcing costs
Optimize water and energy expenditure
Valued & optimized teams Offer employees the best training Hire the best talent by leveraging a high-audience digital ecosystem
A successful social commitment Focus on sustainable development
to improve your performance Values, value-creating
Group expertise in hotel management and development
CORPORATE PROFILE
MANAGED AND FRANCHISED HOTELS
OWNED & LEASED HOTELS
2019 20202014 2021
42%
58%
6% 4%
94%
96%
3%
97%
Accor, an asset-light Group (as a % based on number of rooms)
Corporate Prof ile2
10 ACCOR — 2021 Integrated Report
Strong local roots The Group’s hotels draw on the resources provided by local communities and the natural environments in which they are located. This comes in the form of the workforce needed to operate the hotel, the economic ecosystem used to support its value chain, and raw materials, including food, water and energy, which are key to providing a premium quality hotel service to guests.
They also owe much to the regional culture and heritage, which constitute the well f rom which visitors can draw an endless source of authentic tourist experiences.
The hotels in turn support their host communities by fostering the training and integration of local populations, by using businesses in the local economic ecosystem to meet their supply and service needs and by promoting locations as tourist destinations.
They generate economic benefits and create jobs for local communities by sharing their profits with hotel owners, local authorities and public services in the form of taxes and duties, and by leading outreach and environmental projects with positive local impacts. They also contribute to protecting local culture, assets and heritage.
A rich partnership strategy Hotel chains
with attractive brands or hotels
that the Group wishes to offer in its catalog
Service companies
that can expand the range of solutions
offered by its ecosystem
Business partners to increase global awareness of the Group and its brands,
and the attractiveness of the loyalty program thanks to a wider range of benefits
NGOs, non-profits and purpose-driven companies
that assist Accor in implementing its CSR programs
Property owners
on whose behalf Accor operates hotels, and with
which it develops its network
Digital companies that can help it optimize its distribution by diversifying
it and making it more visible and efficient
2Corporate Prof ile
ACCOR — 2021 Integrated Report 11
50 years of reinventing hospitality
1960-1970 Accor invents economy and midscale hotels with the creation of France’s leading brands in this market: Novotel and Ibis. Accor acquires Mercure.
1980-1990 Accor enters the luxury sector with the acquisition of the iconic Sofitel chain. Accor enters the managed food segment with the acquisition of Jacques Borel International. Accor becomes a trailblazer in well-being with the creation of the Thalassa Spa brand.
Accor creates Formule 1, a new hotel concept based on particularly innovative construction and management techniques. Accor makes a move into gourmet meals with the acquisition of renowned Parisian patisserie chain Lenôtre. Accor joins forces with Groupe Lucien Barrière SAS to develop hotel-casino complexes.
2000-2010 Accor creates a brand to meet the need for individuality with MGallery, a collection of distinctive properties steeped in history. Accor meets the unique needs of businesses with the creation of Pullman, a premium brand for business travelers.
Accor confirms its global leadership in the world of luxury with the acquisition of Fairmont, Raffles and Swissôtel, and a partnership with Banyan Tree. Accor steps up the pace of hyper-segmentation with carefully selected brands such as Jo & Joe, Mama Shelter, 25hours Hotels, TRIBE, greet and Faena as well as names synonymous with design including Hyde Hotels, Delano, SLS Hotels and Orient Express. Accor embraces home sharing with the acquisition of onefinestay, the leader in luxury home rentals that also offers private concierge services.
1967 the early days, with the Novotel Lille Lesquin Paul Dubrule and Gérard Pélisson grasped what no one else had anticipated: the post-war years were ushering in a new, more modern and faster-paced lifestyle offering the chance for travel. At a time when hotels were either family businesses or luxury establishments, our founders invented the modern, standardized h o te l ch a i n . W h i l e t h e s t a n d a rd s of the day required nothing more than a single shared bathroom per corridor, the Novotel Lille Lesquin revolutionized the industry by providing one in each room. And as the French started crisscrossing the country for work or on paid leave, Novotel offered them an office, a grill, a swimming pool and breakfast – all for the price of a hotel room.
HISTORY
Tirelessly reinventing hospitality
Corporate Prof ile2
12 ACCOR — 2021 Integrated Report
2020 Accor provides a high level of service to its guests and partners with its new ALL – Accor Live Limitless loyalty program. Accor accelerates its move into entertainment by forging partnerships with event specialists such as: Paris Society, Potel & Chabot, Accor Arena, PSG, IMG, etc. Accor strengthens its positioning in lifestyle hotels with the acquisition of SBE and the creation of Ennismore.
Accor supports new ways of working with its Wojo-branded in-hotel coworking spaces.
2021 The new Ennismore entity becomes the leader in lifestyle hotels and the player boasting the fastest growth worldwide. Accor presents Emblems Collection, its new luxury brand set to house 60 establishments across the world by 2030.
Accor stages the grand return of the Orient Express in Italy with the Dolce Vita train. Accor strengthens its partnership strategy and the appeal of its loyalty program by launching its first co-branded payment card in France. Accor becomes an official partner of the Paris 2024 Olympic and Paralympic Games.
1970 Accor adopts its first Gender Equality at Work Charter, with the implementation of an action plan for women in the workplace.
1988 Accor is recognized for its “best environmental policy” based on its initial charter of 65 actions.
1994 Accor becomes the first CAC 40 company to create an Environment Department, recast as the Sustainable Development Department in 2000.
2006-2010 Accor creates Earth Check, the hospitality industry’s premier sustainable development program.
2008 Accor sets up the Accor Solidarity endowment fund, tasked with fighting exclusion and empowering, training and protecting the most vulnerable people.
2009 Accor launches Plant for the Planet, a global agroforestry initiative to promote greener agriculture.
2012 Gender equality becomes a Group-wide objective with the launch of its Gender Equality Network, RiiSE.
2015 Accor seals a partnership with Energy Observer, a revolutionary catamaran embodying its support for the ecological transition.
2016-2021 Accor rolls out Planet 21 – Acting Here, a corporate social responsibility (CSR) strategy summed up in six commitments serving as an industry benchmark. In 2020, Accor developed a climate trajectory driven by the demands of science and compatible with the collective ambition of keeping global warming below 1.5°C.
The Group also upheld its ambition of eliminating single-use plastics f rom the guest experience and established the ALL Heartist Fund for employees most affected by the health crisis.
2021 Accor restates its pledge to make its hotel activities sustainable, responsible and inclusive by naming Brune Poirson, Chief Sustainability Officer, on the Group Executive Committee. One of the leaders of the Pathway to Net Positive Hospitality initiative launched at COP26, Accor also commits to Net Zero Carbon by 2050, with a first reduction of 46% in its emissions by 2030. Accor issues its first bond indexed to its sustainable development targets, for €700 million.
Making a positive impact
2Corporate Prof ile
ACCOR — 2021 Integrated Report 13
14 ACCOR — 2021 Integrated Report
Trends and challenges_
ACCOR — 2021 Integrated Report 15
Faced with an unprecedented crisis, Accor managed to resist, assist and bounce back
SECTOR
The industry and sector changes ushered in by the Covid-19 crisis
After several buoyant decades in international tourism driven by the steady rise in tourist numbers and spending, and by diversif ication of destinations, since January 2020, the world has seen the outbreak of an unprecedented health crisis with far-reaching consequences for tourism and travel.
2003 SARS
EPIDEMIC
2000 20202016201220082004
2007 SUBPRIME
GLOBAL FINANCIAL
CRISIS
674
1,459
415
UNWTO INTERNATIONAL TOURIST NUMBER PROJECTIONS FROM 2021 TO 2024
REAL TRENDS IN INTERNATIONAL TOURIST NUMBERS SINCE 2000
2020 COVID-19
PANDEMIC +4% INCREASE IN 2021
Source: UNWTO, January 2022.
International tourism (millions of travelers)
While the tourism and travel sector has weathered crises in the past, none has had an effect on the tourism industry like this pandemic. Over the past 20 years, only the SARS epidemic, in Asia in 2003, and the sub prime crisis in the US in 2007, led to declines in the numbers of international travelers. Unlike the current crisis, these crises, although followed by major economic upheavals in Europe and the US, did not cause major disruptions to travel plans, thanks to the rapid recovery followed by an acceleration in tourist flows in the years following the crises. The restrictions on movement imposed by the current crisis have prompted a clear slowdown in global tourism.
In this context, RevPAR levels (revenue per available room) across the entire industry plummeted like never before. In 2021, they suffered significant volatility and struggled to restore pre-crisis levels on a stable basis.
Trends and challenges3
16 ACCOR — 2021 Integrated Report
After a difficult first part of the year marked by successive waves of the pandemic and restrictive sanitary measures (border closures, limits on meetings and events, etc.), the second half of the year witnessed a recovery in most geographies. As of April 2021, Accor enjoyed a sequential rebound in business, with RevPAR improving month after month. The improvement in demand meant that average room prices came close to or even exceeded pre-Covid-19 levels in many destinations over the end of 2021. Although the effects of this unprecedented crisis linked to the Covid-19 pandemic have not yet
Source: Oxford Tourism Economics.
World travel spending by segment vs. 2019 (%)
Naturally, the Group’s RevPAR levels also suffered f rom the consequences of the crisis, although an increase in results was noted over 2021.
2022
2020
2021
INTERNATIONAL
BUSINESS LEISURE
DOMESTIC INTERNATIONAL DOMESTIC
2023
2024
20% 40% 40%ACCOR MIX
IMEAT
SOUTH EUROPE
2020 Q2 Q3 Q4Q1
2021 Q2 Q3 Q4Q1
2020 Q2 Q3 Q4Q1
2021 Q2 Q3 Q4Q1
AMERICAS
NORTH EUROPE
2020 Q2 Q3 Q4Q1
2021 Q2 Q3 Q4Q1
2020 Q2 Q3 Q4Q1
2021 Q2 Q3 Q4Q1
- 24%
- 90%
- 49% - 69%
- 63% - 63%
- 25% - 17%
- 21%
- 23%
- 92% - 67%
- 81% - 82%
- 74%
- 39% - 37%
- 20%
- 97% - 84%
- 77% - 73%
- 63%
- 38%
- 19%
- 88% - 64%
- 54% - 51%
- 44% - 23%
+ 5% GROUP
ASIA-PACIFIC
2020 Q2 Q3 Q4Q1
2021 Q2 Q3 Q4Q1
2020 Q2 Q3 Q4Q1
2021 Q2 Q3 Q4Q1
- 34%
- 77% - 58%
- 51% - 55%
- 38% - 57%
- 48%
- 25%
- 88%
- 63% - 66%
- 64% - 58%
- 37% - 27%
OCCUPANCY RATE AVERAGE ROOM RATE LFL REVPAR VS. FY19Group RevPAR trends by region (%)
OVER 2021, REVPAR IMPROVED BY 37 POINTS BETWEEN THE FIRST AND THE FOURTH QUARTERS.
fully disappeared, all of the Group’s geographies now appear to be well on the way to enjoying more “normative” levels of business.
Progress in the vaccination campaign combined with an improvement in the health situation and strong demand f rom leisure guests have also made it possible to reach levels of activity similar to the pre-crisis period in certain destinations.
According to estimates made by Oxford Tourism Economics, the recovery in leisure activities should more than make up for the lag in international business travel in 2023.
3Trends and challenges
ACCOR — 2021 Integrated Report 17
SECURING guest stays
Against a backdrop of intense concern on health issues, Accor decided to strengthen its health, safety, hygiene and prevention protocols to ease uncertainty and set the stage for a rapid recovery.
98% of the Group’s hotels were ‘ALLSAFE’ certified at end-December 2021 After joining forces with Bureau Veritas, Accor launched the ALLSAFE label. This project, carried out with doctors and epidemiologists, was designed in close cooperation with hotel owners and industry representatives and has been shared with the French Tourism Alliance and the French ministries for Tourism, Health and Labor to approve the standards identif ied. This approach has led to the creation of operating guidelines for all those involved in the sector to enable them to ensure strict compliance with the recommendations of the health authorities (WTO, French ministry of health, etc.) for all accommodation, general and restaurant services. The label certifies that the cleanliness, safety and prevention measures implemented by the Group’s hotels are in line with the health situation.
Creation of medical assistance offering in partnership with Axa Partners Accor also signed a strategic partnership with Axa Partners, the world leading insurance Group, to offer medical assistance to guests at all its hotels around the globe. Since July 2020, the partnership enables the Group’s guests to get the best care through the medical services offered by Axa Partners, the international arm of Axa, specialized in assistance, travel insurance and credit insurance. With this initiative, Accor guests can enjoy the latest innovations f rom Axa in terms of remote medical services. Guests benefit f rom its extensive network of medical services covering tens of thousands of company-approved healthcare professionals, as well as f ree access to medical teleconsultations wherever they may be. All Accor network employees are now able to assist guests and ensure their health and safety during their stays, by transforming each of the Group’s hotels into genuine safe havens in the 110 countries where it operates. Welcoming, protecting and taking care of our guests is at the heart of what we do. Together with enhanced cleanliness protocols, this partnership is ever-more important to enable our guests to rediscover the joys of travel and enjoy staying in our establishments.
Rollout of ‘Accor Key’ to all Group hotels Accor has rolled out its digital ‘Accor Key’ solution in all its hotels to offer guests a completely contactless stay through the use of a virtual key. On arrival, they receive a virtual room key by downloading a special app to their smartphone. This provides access to their rooms, meeting rooms and elevators using their smartphone.
Welcoming, protecting and taking care of our guests is at the heart of what we do.
Trends and challenges3
18 ACCOR — 2021 Integrated Report
SUPPORTING employees, individual partners, fragile people, professionals and hospitals
At the height of the Covid-19 pandemic, in April 2020, Accor and its Board of Directors decided to allocate 25% of the dividend, i.e. €70 million, to the creation of the ALL Heartist Fund. With the remit of supporting and helping people in physical and financial distress as a result of the Covid-19 pandemic, the fund is to remain in existence for as long as the lives of its benefactors continue to be dramatically impacted by the consequences of the pandemic.
Since its creation, the ALL Heartist Fund has honored almost 98,000 requests for aid and pledged a total amount of more than €31 million.
In particular, this has enabled Heartists to access healthcare (coverage of hospitalization and medical expenses), keep their homes (financial aid for housing) and even pay for their children’s school fees.
True to its values, Accor has constantly sought to protect, welcome and take care of people in distress during this health crisis, thereby offering them the chance to bounce back f rom this difficult situation.
THE ALL HEARTIST FUND ALSO PROVIDED
ITS HELP TO ALL FRONT-LINE WORKERS IN THE FIGHT AGAINST
COVID-19 (medical workers, police, armed
forces), BY PROVIDING ACCOMMODATION,
SUPPORT AND CARE.
3Trends and challenges
ACCOR — 2021 Integrated Report 19
RESPONDING to underlying trends
Achieving work-life balance and autonomy are top of the list of concerns for employees. More and more, people are looking for creative, flexible and innovative spaces. For companies, these spaces are also ideal mobility solutions for their employees.
Accor has been at the cutting edge of these new ways of working for a number of years thanks to its Wojo and Mama Works brands. As the French leader in the coworking market, Wojo is currently offering 14 sites in France and over 500 spaces managed by Accor. These lively, communal, creative, accessible and practical spaces within Accor hotels called Wojo Corners meet work-life balance needs. In addition to their flexibility, which allows hotels to tailor spaces to its guests’ desired workspace specif ications, these spaces have original designs and modern installations that are user-f riendly. They are designed to fuel interaction, productivity, engagement. They also offer a range of hospitality services providing the necessary comforts to create the best possible working conditions (24/7 reception, high-speed Wi-Fi, printers, catering, gyms, parking, etc.).
In 2021, Accor launched ALL Connect, a new hybrid meetings concept supported by Microsoft Teams. This new concept will enable guests around the world to adapt to the new ways of working that are the legacy of the Covid-19 pandemic. Accor’s ambitious target is to achieve 100% of its hotels with meeting rooms comply with the new hybrid meetings standard by 2022 across all brands, f rom economy to ultra-luxury worldwide.
Source: Malakoff Humanis study, February 2021.
86% of French employees would like to work from home after the health crisis.
46% OF REMOTE WORKERS DO NOT
HAVE A DEDICATED WORKSPACE
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An ever-changing and lasting industry
SECTOR FOCUS
A historically robust sector
B e f o r e t h e Co v i d - 1 9 p a n d e m i c , international tourism had grown continuously over the last 70 years, buoyed by an increase in the number of travelers and their spending, and a diversification of destinations around the world. While the occasional crisis has disrupted this trend in the past, the tourism industr y has always m a d e i t t h ro u g h t h e s e p e r i o d s of high uncertainty, which have had only a limited impact in the long run.
It has traditionally been one of the most dynamic sectors, posting annual growth rates of 4-7% 1. In normal times, it is also one of the largest contributors to global growth, representing 10.4% of global GDP in 2019.
Reflecting economic growth trends over the past 30 years, international tourism boasts long-term structural growth prospects which the health crisis has only affected on a temporary basis.
• 1.5 billion people traveled around the world in 2019;
• the number of overnight stays booked in the hotel industry climbed to 8.5 billion;
• tourism- and travel-related spending increased by 5% per annum for eight years;
• Europe received 51% of international travelers.
1 In number of international tourists.
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Sector fundamentals intact
Rise of the middle class in emerging countries and more outward-looking younger generations A 10-year-long underlying trend, growth in traveler numbers around the world over the past 40 years has been driven by a range of structural factors, including the rise of the middle class in emerging countries and the emergence of more mobile younger generations who share a passion for travel.
More borders opening worldwide and more diverse and accessible means of transport While the surge in international tourism can be attributed to rising living standards, the trend has also been facilitated by open borders in a growing number of countries and by a wider variety of means of transportation (train, car, low-cost airlines, etc.), which are now easier to access (lower prices, Internet, etc.).
Rise in domestic tourism Domestic tourism is also flourishing in Asia, particularly in China, India and Indonesia, where the number of international tourists is still below that of domestic tourists, implying enormous potential for growth in the medium term.
China, the largest source market for tourism Now also an essential component of international tourism, China is the world’s largest source market, with Chinese tourists spending almost twice as much as their American counterparts in 2019.
And this growth potential remains considerable, as only 10% of Chinese citizens have passpor ts, compared with 40% of Americans and more than 75% of the British. In 2019, 170 million Chinese nationals traveled abroad, disbursing nearly $280 billion, or one-fifth of global tourism spending. Over 10 years, departures for stays outside China have more than tripled. The China Tourism Research Institute estimates there will be 400 million Chinese tourists worldwide by 2030, making up half of the industry’s global growth.
Europe has historically been the third most popular tourist destination for Chinese travelers, after Asia and the Pacific, which together account for 90% of Chinese tourism. Europe receives about 10% of Chinese tourists (80% on leisure stays), and France is the leading European destination.
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Independent hotels represent the vast majority of the global offer and very significant development potential for chains In 2020, the global hotel industry represented a total of 45 million rooms, 31% of which operated by hotel chains. 69% of existing hotels worldwide are owned by independent operators and therefore represent very significant development potential for chains. Accor is the most firmly established hotel Group in Europe, Asia-Pacific, Latin America and the Middle East & Af rica region.
The highly f ragmented nature of the hotels market, especially in the most attractive and high-growth regions, reflects the extent of development and growth opportunities.
Consolidation among players in search of economies of scale
In recent years, the hotel industry has witnessed a consolidation phase, initiated primarily by Chinese, American and European players. M&A strategies are designed to meet several core objectives:
Consolidation helps hotel groups entrench their leadership by deepening their footprints and taking them into the most dynamic destinations. M&A also opens up new strategic avenues, fostering synergies and the sharing of best business practices.
• acquire new geographic growth drivers;
• deepen local hotel networks in fast-growing regions;
• elevate the brand portfolio, be present in new high value-added segments;
• capitalize on guest loyalty programs;
• leverage synergies and economies of scale;
• expand the range of services on offer;• enhance the business model and corporate image.
69% of existing hotels worldwide are owned by independent operators.
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Digital technology intensifies competition
In recent years, swathes of digital players have entered the hospitality market and gradually expanded their business models to take part of the value chain.
With this in mind, players in the hospitality industry have devoted a great deal of time to technological intelligence to keep up with the latest innovations available. Their ability to effectively personalize the relationship with tomorrow’s guests, and to retain them over time, hinges on their ability to accelerate their digital transformation today. While people are the beating heart of the tourism industry, digital technology has paradoxically never been as ubiquitous as it is today, transforming the sector’s competitive landscape and allowing operators to enrich their range of services.
Intermediation by online travel agencies and metasearch engines Digital players and a number of stakeholders in the sharing economy have car ved out positions along the value chain as intermediaries between hotel operators and their guests. Focusing their resources on the research and booking stages, they are paid by hotel operators in exchange for the guests they bring them. Their technologies allow them to quickly collect a great deal of personal information about guests, grasp their consumption habits and offer them a wide choice corresponding to their prof ile, with an optimal browsing experience. Metasearch engines have a big impact on the competitive landscape and margins, not only for incumbents, but also for digital platforms by promoting the deals of the players offering the most generous compensation.
The emergence of private home rental platforms Other digital players offering rentals of private homes have also emerged over the last decade, providing guests with alternatives to conventional hotels. Operated by online platforms, these accommodation solutions c o m p e t e w i t h t h o s e o f h o t e l s , meeting new consumer aspirations fo r a u t h e n t i c i ty a n d s o m e t i m e s including personalized services.
The emergence of digital disruptors in the tourism industry Through their technological innovations, including the development of voice assistants, digital disruptors have penetrated the hospitality industry b y p r o m o t i n g a n d d i s t r i b u t i n g accommodation. As they entered the value chain, they came into direct competition with online travel agencies. This helped push down intermediation costs and allowed hotel operators to regain some independence.
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Hotel chains
Optimized guest experience and retention Private home rentals
New distributors White-label hotel booking
Online travel agencies/ Metasearch engines
Private home and restaurant rentals Optimized digital experience
Digital disruptors
Hotel advertising and booking Voice assistants
Independents hotels
Convergence of business models Given the wide variety of options now available, hotel operators and digital players have diversified their portfolios into private home rentals, while private home rental platforms have started listing hotels and developing luxury services. These diversifications have prompted a measure of convergence between models, and the emergence of powerful ecosystems that integrate a wide choice of services designed to enrich the overall experience, keep guests coming back, increase their market shares and secure their growth in a changing environment.
Dovetailing of distribution models and emergence of new distributors The line between bricks-and mortar retail and e-commerce platforms is becoming increasingly blurred, both being links in longer chains. Companies are also seeking to diversify their distribution to address a broader range of both individual and business guests. Building on the catalogs given to them by online travel agencies, some distribution platforms have also decided to expand their offering into the hotel industry by proposing white label accommodation.
Incumbents have not said their last word, with ongoing competition in the field of the guest experience For incumbent hotel Groups, competition is all about deciphering and anticipating guests’ new aspirations. Nonetheless, key differentiators also include the strength of their brands and their ability to innovate and retain guests. For many years, travelers’ chief aspirations have been choice, experience, comfort and personalization. This puts the onus on hotel operators to work on the design, architecture, furniture, and food and beverage options of their venues.
The diverse competitive environment
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Global environmental and societal challenges identified and addressed by Accor
Accor’s business has deep roots in its host regions. It can deepen them further by involving local communities in its development, as well as by protecting them from the excesses of large-scale tourism and by creating new touchpoints locally.
KEY CHALLENGES: Fight against exclusion, support for communities, fight against sexual exploitation, solidarity, protection of cultures and heritage.
Local communities
Accor is a people-centric Group, which has the responsibility of taking care of people who work in its business lines and contribute to the professional fulf ilment of its employees, of course, but it is also responsible for all of those involved at each stage of the value chain. As an enabler of social mobility, Accor has introduced a number of action plans to tackle local challenges in terms of discrimination in each country where the Group operates. In Australia, for example, the Group has been working to promote the inclusion of Aborigines: direct recruitment strategy, partnership with the government, specific training programs, etc. Since 2017, more than 450 people from aboriginal communities are part of the Accor brand. In 2021, this program was recognized with a Responsible Tourism Award from the World Travel Market. Furthermore, faced with the impact of the Covid-19 pandemic on sector business, Accor illustrated its reactivity with the creation of the ALL Heartist Fund to support its employees: in December 2021, 98,000 requests were funded for a budget of €31.4 million.
KEY CHALLENGES: Decent work, inclusion, diversity, well-being, development of individuals.
A responsible employer enabling social mobility
As a major economic player, Accor operates in 110 countries, interacting with many established economic and public partners. It has been expanding its activities in the digital world for several years. An industry leader, it must consistently apply the highest ethical standards in its operations.
KEY CHALLENGES: Fight against corruption and conflicts of interest, protection of personal data.
Business integrity
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Accor has also identified the main ethical and CSR risks that its activities entail for its stakeholders. They are described in section 2 of the 2021 Universal Registration Document, alongside the measures implemented by the Group to prevent them or mitigate their consequences.
As a major player in the food and beverage industry, with traditionally one-third of business volume generated in this area, the Group plays a key role in the transition f rom a traditional food model to a more sustainable food system, which would have multiple positive impacts on biodiversity and would also protect natural resources. Accor aims to offer restaurant services based on the transition towards menus with much less meat products, and local and sustainable sourcing, to eliminate food waste.
KEY CHALLENGES: Fight against food waste, healthy and high-quality food, environmentally f riendly farming practices, protection of biodiversity.
Promoting sustainable food
The hotel industry has many global and local environmental impacts. The Group is committed to complying with the objectives of the Paris Agreement. Promoted by its CEO, Accor has set itself the ambitious objective of reaching carbon neutrality by 2050 (objective validated by the SBTi) and launched its maiden sustainability-linked bond issue indexed on the Group’s sustainable development goals. The Group’s environmental commitments also target reducing the quantity of waste produced by its hotels. The goal is to reduce food waste by 30% for 2021 and eliminate all single-use plastics in the guest experience by end-2022.
KEY CHALLENGES: Carbon, water, waste, pollution (air, water and sea).
Reducing the environmental footprint
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Strengths and strategy_
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A global ecosystem of augmented hospitality services
OUR STRENGTHS
An unrivaled brand portfolio designed to deliver augmented hospitality At the foref ront of the hospitality revolution, today Accor is much more than a mere hotel Group. It has become an extensive ecosystem of brands, expertise and solutions, fostering a new approach to how to Live, Work and Play.
A balanced brand catalog with stronger positions in fast-growing segments. A varied, easily understandable portfolio of experiences.
Live constantly evolving, the Accor hospitality brand portfolio is one of the world leaders. From luxury to economy, private rentals and hotel stays, with 40 brands, 5,298 hotels and more than 777,714 rooms in 110 countries, Live provides its guests with an unrivaled collection of inspiring, relaxing, elegant, and personalized experiences.
Work as well as thousands of spaces for meetings & events and coworking areas in its hotels, Mamaworks and Wojo enable guests to work as and when they please, in the heart of cities. It’s working life, Accor style.
Play with the many entertainment options offered by Accor through Potel & Chabot, Paris Society and Accor Arena, the thousands of restaurants and bars in its hotels, and its partners PSG, IMG and others.
Business Accelerators Accor delivers performance-enhancing solutions and services in the areas of distribution, operational management and guest experience. Our performance accelerators are all accomplished experts in their fields, ensuring the success of our guests’ projects at each stage of their development.
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Hotels LUXURY
Each hotel of the iconic Raffles brand offers service that is at once graceful and discreet, bringing all the delights of luxury to the traveler. Entering a Raffles hotel is a unique experience, with special attention and hospitality that is personalized, generous and faithful to the spirit of the place and the destination. Legendary service since 1887.
Network 20 hotels, or 2,921 rooms, in 14 countries, and 2,649 rooms in the pipeline.
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A cosmopolitan icon for more than 135 years, Orient Express to this day remains the very definition of timeless luxury. This legendary blend of exotic opulence and superlative refinement will soon be transposed to an international collection of Orient Express hotels, offering a new journey to absolute sophistication.
Network A collection of 10 addresses in 2030.
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Banyan Tree hotels are an oasis of peace in some of the world’s most beautiful settings, allowing guests to regenerate body and mind. They encapsulate the romance of travel, promising authentic and memorable experiences.
Network 36 hotels, or 4,895 rooms, in 12 countries, and 884 rooms in the pipeline.
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Legendary addresses where heritage meets French art de vivre. Exceptional architecture and settings for the ultimate luxury experience. Each stay is a story just waiting to be written.
Network 5 hotels, or 877 rooms, in 5 countries.
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Onefinestay opens the doors to the most beautiful homes and villas around the world, offering superlative service to increasingly discerning guests.
Network 3,500 properties in 2 collections: City and Villa.
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Hotels LUXURY
Because it’s an art, hospitality knows no boundaries. It can happen anywhere, far beyond hotel walls, to provide new sensations and inspiring experiences.
The iconic Fairmont addresses, all located at the very heart of the destination, offer hospitality imbued with meaning characterized by warm service, a commitment to preserving the environment and holistic well-being experiences. Combining these aspects with unique architecture adds up to the consummate guest experience.
Network 83 hotels, or 32,513 rooms, in 29 countries, and 7,531 rooms in the pipeline.
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Imagine luxurious, contemporary hotels where the essence of each destination blends harmoniously with French art de vivre to create refined experiences, to let modern travelers indulge in the pleasures of life and toast them in true French fashion.
Network 117 hotels, or 30,023 rooms, in 46 countries, and 8,219 rooms in the pipeline.
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Combining the “all-inclusive” concept with a vibrant and luxurious atmosphere, and adventures and entertainment for the whole family, Rixos hotels offer exceptional escapades to delight the imagination, opening up a world of possibilities for our guests, all in modern Turkish style.
Network 30 hotels, or 10,019 rooms, in 7 countries, and 5,797 rooms in the pipeline.
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Some hotels are more than just mere hotels. They are genuine icons, the pride of a nation. Emblems have been created to bring together these jewels in one collection... Whatever the destination, a stay at Emblems give the unique experience of feeling like your part of an exclusive, select club.
Network 1 hotel in the pipeline in Guiyang, China, 60 establishments throughout the world by 2030.
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Hotels UPSCALE SEGMENT
Mantis has uncovered hotels, eco-lodges and cruises in some of the most remote places on the planet, offering vibrant cityscapes, vast African plains and just about every other type of destination in between. Each has its own unique spirit, but all are bound by a common obsession, that of being extraordinary, preserving the environment and protecting all that is rare.
Network 23 hotels, or 654 rooms, in 10 countries, and 427 rooms in the pipeline.
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MGallery is a collection of boutique hotels steeped in history, where guests discover the world and more, designed for delightful and unique experiences.
Network 121 hotels, or 12,938 rooms, in 36 countries, and 7,997 rooms in the pipeline.
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Each hotel bears the name of a contemporary Australian artist and takes their work as inspiration for an end-to-end artistic experience, with everything from original works on the walls and art books on the shelves to dedicated television channels and visits on artistic themes. Sophistication and bespoke service have found a home with Art Series Hotels.
Network 7 hotels, or 1,834 rooms, in Australia, and 108 rooms in the pipeline.
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Pullman Hotels & Resorts is driving a new tempo in travel and all it brings, providing an inspiring, energizing and enriching experience to new entrepreneurs. Pullman offers its guests the space they need to focus, work and play.
Network 145 hotels, or 42,374 rooms, in 40 countries, and 13,438 rooms in the pipeline.
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Contemporary hotels characterized by the excellence and attention to detail typical of Swiss hospitality. Swiss by heart and cosmopolitan by nature, we offer our guests the vitality and peace of mind they need to explore the world and get the best out of life.
Network 36 hotels, or 15,121 rooms, in 20 countries, and 6,419 rooms in the pipeline.
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Angsana whets your appetite for adventure, whatever your age and desire for travel. A successful alliance of local elegance and vibrant and entertaining experiences, Angsana offers a prodigious choice of destinations around the world for you to explore.
Network 18 hotels, or 2,874 rooms, in 12 countries, and 358 rooms in the pipeline.
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From hotels to resorts to apartments, Mantra has the perfect spot in the ideal destination.
Network 77 hotels, or 14,863 rooms, in 3 countries, and 352 rooms in the pipeline.
Each Mercure hotel is a portal to its destination, offering travelers a comfortable stay and immersive local experiences. Each Mercure hotel is unique, an invitation to discover the local culture through design, F&B and craftwork.
Network 899 hotels, or 119,007 rooms, in 61 countries.
Each Novotel is a destination in itself. Their modern, natural and intuitive design gives the hotels both a relaxed and lively atmosphere, making them the perfect place to stay, or simply have a drink, eat, work, play or wind down.
Network 559 hotels, or 108,272 rooms, in 65 countries, and 31,720 rooms in the pipeline.
How can you be out of town and still enjoy all the comfort of home, all while discovering a new city? Adagio Aparthotels are functional apartments with hotel services and easy-going hospitality. Located in the heart of cities, the brand offers three ranges: Adagio, Adagio access and Adagio premium.
Network 122 hotels, or 13,795 rooms, in 13 countries, and 4,736 rooms in the pipeline.
Hotels MIDSCALE SEGMENT
Hotels UPSCALE SEGMENT
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Peppers creates irresistible hotels for select experiences in some of the most spectacular spots in Australia, New Zealand and Indonesia. Peppers is synonymous with refinement, infinite attention to detail and personalized service.
Network 27 hotels, or 4,743 rooms, in 3 countries, and 343 rooms in the pipeline.
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The Sebel is a collection of sophisticated, elegant and spacious apartments with customized service, offering guests the chance to really get to know the destination.
Network 33 hotels, or 2,361 rooms, in 3 countries, and 311 rooms in the pipeline.
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All over the world, Grand Mercure draws on its contemporary, high-end signature style to revisit and showcase the uniqueness of each culture, to surprise its guests and inspire them to rediscover what makes each one special.
Network 58 hotels, or 13,113 rooms, in 12 countries, and 7,200 rooms in the pipeline.
At Mövenpick, your stay is designed to be a succession of experiences. We know that small things can make a big difference. That’s why Mövenpick hotels are passionate about doing ordinary things extraordinarily. Instilled with a culture of Swiss hospitality since the 1940s, Mövenpick offers a unique selection of contemporary hotels around the world, located in cities or resort towns, complemented by a culinary heritage dating back 70 years, with no compromise on quality or authenticity.
Network 111 hotels, or 25,899 rooms, in 30 countries, and 12,406 rooms in the pipeline.
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BreakFree offers spacious apartments and hotels near the most beautiful beaches, urban tourist attractions, or popular entertainment venues for holidaymakers. Families, couples or groups of friends know that BreakFree is the guarantee of unpretentious comfort and laid-back service.
Network 23 hotels, or 3,370 rooms, in 2 countries.
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ibis is a door open to vibrant places where everyone can come to sleep, eat, meet new people and enjoy live music. Possibilities abound in ibis’ fresh and flexible spaces fostering interactions and exchanges between guests, travelers and local residents.
Network 1,259 hotels, or 158,427 rooms, in 68 countries, and 17,675 rooms in the pipeline.
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Creative design and a fun atmosphere are what’s in store for travelers when they stay at ibis Styles. With a unique design concept built around a specific theme and a creative and optimistic approach, ibis Styles hotels offer simple, trendy and affordably priced hospitality.
Network 594 hotels, or 63,148 rooms, in 50 countries, and 23,411 rooms in the pipeline.
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greet welcomes people looking for meaning in their relationships, their purchases and their way of life. People who each day help make our world a better place, giving a second chance to everything around them.
Network 10 hotels, or 811 rooms, in 2 countries, and 2,123 rooms in the pipeline.
ibis budget is the smart choice for urban adventurers looking for a base camp. Guests can meet to share their passion for smart sport and use the exercise equipment to stay in shape while having fun.
Network 658 hotels, or 66,271 rooms, in 24 countries, and 5,656 rooms in the pipeline.
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The brand dedicated to travelers on the road. For more than 30 years, our friendly hotels have been easy to find and affordably priced. With the #OnTheRoad concept, hotelF1 is rethinking comfort, design and service. New à la carte services are available to enrich guests’ experience.
Network 147 hotels, or 11,391 rooms, in France, and 62 rooms in the pipeline.
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D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Hotels ECONOMY SEGMENT
4Strengths and strategy
ACCOR — 2021 Integrated Report 35
ENNISMORE
The 21c Museum Hotels experience combines contemporary art museums, boutique hotels and restaurants run by leading chefs. The originality, artistic spirit and pioneering visions of Museum Hotels perfectly rounds out the MGallery Hotel Collection offering discrete and creative hospitality to lovers of art, literature and culture.
Network 9 hotels, or 1,240 rooms, in the United States, and 305 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
At 25hours, hotels are unique and made to measure. Their personalities are in tune with their vibrant host cities. Every 25hours hotel has its very own soul, inspired by the location and shaped by local art, culture, cuisine and history.
Network 15 hotels, or 2,672 rooms, in 6 countries, and 632 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Mama is more than just a place to eat and sleep. It’s an urban refuge, a place for meeting and sharing. It’s like being in your mother’s arms – a cozy place where you feel good. Mama takes care of your stomach too, with tasty and unique dishes designed by fantastic chefs. Like a mom, Mama takes care of you!
Network 15 hotels, or 2,148 rooms, in 8 countries, and 1,628 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
The Hoxton is a collection of hotels steeped in culture at the heart of the community. Each hotel reflects its environment, inspired by the diversity and originality of the streets and people in its surroundings. Since we opened the doors of our first hotel, we made our mark with our dynamic and welcoming lobbies, our pragmatic guest experiences which are transparent and with great attention to detail, highlighting the local district thanks to art, design, trade and eclectic events.
Network 10 hotels, or 1,748 rooms, in 5 countries, and 2,132 rooms in the pipeline.
HEART OF THE NEIGHBORHOOD
A COMMUNITY WORKSPACE
Since its inauguration in 2006, the comfortable halls of the Hoxton hotels have become the unofficial work places of nomadic workers. Thanks to all that we have learned over many years, we have created a new coworking space, Working From_. True to our transparent policy of no hidden costs, The Hoxton, Working From_ offers excellent value for money, flexible subscription solutions, multiple benefits and spaces that make you feel at home, without any distractions.
Network 3 spaces, including 1 in development.
A CULTURAL ICON
Mondrian is in tune with the world’s most vibrant cultural scenes. Its hotels provide a unique and offbeat setting where guests and locals can lose themselves in the culture of each destination. Mondrian is another way of traveling.
Network 7 hotels, or 1,444 rooms, in 4 countries, and 1,921 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Morgans Originals focuses on roots to breathe life into a dynamic brand which adapts to different markets while remaining true to its universe. It is the epitome of luxury lifestyle. Whatever the size, Morgans Originals establishments always rhyme with entertainment. They offer the best from cooking to mixology, design and creativity. More than mere hotels, they are vibrant luxury destinations where it is a joy to get together.
Network 5 hotels, or 959 rooms, in 4 countries, and 659 rooms in the pipeline.
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36 ACCOR — 2021 Integrated Report
SLS is the quintessence of an extraordinary experience. blending culinary art, theatrical staging and a hint of subversive design. From the giant metal duck to the bar prized as much by saints as by sinners, no other luxury hotel can boast such diversity, such abundance and such a sense of fun.
Network 9 hotels, or 2,448 rooms, in 4 countries, and 1,015 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
A sparkling cocktail of refinement and style mixed with a burst of slightly offbeat local energy to create an inimitable experience, but also to be surrounded by like-minded individuals.
Network 9 hotels, or 1,408 rooms, in 8 countries, and 528 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Delano offers today’s travelers the rarest and most coveted experiences. It rewrites the concept of the luxury resort, combining first-class service and personalized experiences that stimulate curiosity and nourish the senses.
Network 1 hotel, or 1,114 rooms, in the United States, and 124 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Hyde hotels, resorts and residences are designed to meet the needs, aspirations and tastes of connoisseurs. A new breed of hospitality born of the spirit of discovery, the fantasy of nightlife and the excitement of encounters, Hyde is more than just a brand, it is a state of mind.
Network 3 hotels, or 736 rooms, in 2 countries, and 1,025 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Tribe is a new breed of hotels. One that matches the desires and aspirations of today’s travelers. A refreshing and disruptive design-driven brand, Tribe pushes back the boundaries, with a revamped hotel experience that puts it firmly at the forefront of the affordable luxury sector. Modern travelers, this hotel is for you. Welcome to Tribe.
Network 4 hotels, or 358 rooms, in 3 countries, and 7,104 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
AN IMMERSIVE EXPERIENCE
FOR EVERYONE, EVERYDAY ONE OF A KIND
Designed especially for Millennials and all those who share their spontaneity and their quest for sharing and experiences, JO&JOE is a hybrid hospitality concept, halfway between youth hostel and classic hotel.
Network 4 hotels, or 895 rooms, in 2 countries, and 458 rooms in the pipeline.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Since 1924, Gleneagles has been one of the most emblematic sport resorts in Scotland. Located at the foot of Ochil Hills, it has been a must-visit destination for travelers for nearly a century. Having opened during the Golden Age of travel, this 850 hectares property is an incarnation of the natural beauty for which Scotland is famous. With its magnificent country playground, the hotel has recovered its status in upscale society.
Network 1 hotel, 233 rooms, 1 hotel in the pipeline.
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ACCOR — 2021 Integrated Report 37
WORK AND PLAY
Wojo is one of Europe's leading providers of flexible offices and workspaces. More than 600 companies have already set up there, and use the private offices, coworking spaces, meeting rooms, and all the common areas of these new work spaces on a daily basis. These services are also available on an à la carte basis, to support the high demand for flexibility. Wojo is above all a friendly atmosphere in a demanding environment designed for professionals; a strong design and all kinds of services available to (tele)workers and companies.
Network 14 sites, 10 in Greater Paris and 2 in Lyon and 1 in Barcelona. Over 500 spaces managed by Accor, and 900 addresses planned for 2023.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Potel & Chabot has been reinventing the art of fine dining since 1820. A proud champion of French cuisine, its know-how and excellence are now part of the Accor portfolio. With 5 spectacular sites in Paris and a catalog of 600 addresses in France and abroad, Potel & Chabot can organize events of any size.
A few exclusive addresses 600 prestigious locations throughout the world, in particular Pavillon Gabriel, Pavillon Kléber, Pavillon Dauphine, and Hôtel d’Évreux.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
In just under 10 years, Paris Society has become a leader in events, hospitality and entertainment in France. The brand is currently expanding in three areas: CLUBS, flagships of Parisian nightlife; TABLES, exceptional restaurants, laboratories of the new culinary arts; and PLACES, a unique portfolio of event locations. These different yet perfectly complementary businesses allow it to create synergies and capitalize on its immense know-how.
A few exclusive addresses Apicius, Terminal 7, Paris Longchamp, Monsieur Bleu, Loulou, Raspoutine Paris, Rome & Marrakesh, Le Rooftop, R2 Marseille, Le Domaine de Longchamp and Les Pavillons des Étangs.
Activity 16,000 events organized each year, and 10 prestigious projects in the pipeline.
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38 ACCOR — 2021 Integrated Report
BUSINESS ACCELERATORS
VeryChic offers its members exclusive deals in exceptional hotels, with discounts of up to 70%. More than 6,000 partner hotels optimize their distribution via VeryChic.
Network 10 million members and 6,000 partner hotels in 100 countries.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
ResDiary is a flat-rate online table reservation system designed by restaurant owners for restaurant owners. A leader in the management of distribution channels, it allows people to make reservations from anywhere, on the venue’s own website or social networks, or through other channels such as Google.
Activity 194 million meals served every year in 10,300 restaurants in 60 countries.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
D-EDGE is an SaaS company offering advanced cloud-based e-commerce solutions covering all stages of hotel distribution. Combining creativity and marketing know- how with technological excellence, D-EDGE brings together a complete hotel technology infrastructure under one brand.
Customer base 17,000 hotel guests in more than 100 countries.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Founded in 2009, Gekko Group combines its commercial expertise and technology to offer innovative digital hotel distribution and loyalty platforms for the travel industry (leisure & business) and large companies.
Activity 6 subsidiaries and program specialized in meeting the needs of corporate clients and travel agencies.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
John Paul provides businesses and brands with loyalty solutions for their guests and employees through three complementary programs. John Paul blends the unique know-how and skills of its 250 concierges with its digital platform of ultra-personalized content.
Network 400 talented staff available 24/7 worldwide, 10,000 exclusive partners.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
Astore is a global and local team of experts that responds to all hospitality needs with innovative digital solutions to secure and maximize the achievements of hotel operators.
Activity €2.5 billion in purchases worldwide, 6 product families covering 100% of hotel needs, 3,500 providers worldwide.
Vivre
Travailler Vibrer Accélérateur métiers
L u x e M i l i e u d e g a m m e
É c o n o m i q u eP r e m i u m
D i s t r i b u t i o n E x p é r i e n c e O p é r a t i o n s
4Strengths and strategy
ACCOR — 2021 Integrated Report 39
Beyond the brands, a wide range of solutions, services and experiences
As part of its augmented hospitality strategy, Accor offers its expertise in a full range of related activities. In this way, Accor enriches the customer experience and offers a wide range of restaurants and events, in a keen quest for excellence and authenticity.
Accor also makes its equipment and expertise available to ensure that its solutions for meetings and business events are always of the highest quality and innovative. Through its Wellness offer, Accor guarantees experiences that recharge and transform.
A full range of related activities. Experiences that recharge and transform.
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40 ACCOR — 2021 Integrated Report
EVENTS & CATERING
One of Accor's missions is to make its restaurants and bars the heart and soul of its hotels by offering authentic and unforgettable experiences. With 10,000 bars and restaurants, Accor thus creates locations that are lively places for locals and travelers.
BUSINESS MEETINGS & EVENTS
Accor harnesses cutting-edge technological equipment, innovative F&B offerings and tailor-made activities to host more than 700 events each day in its 3,100 seminar hotels, all segments combined, representing more than 18,000 meeting spaces available for its business guests.
WELLNESS
Today’s travelers are looking for services and experiences that help keep them in shape. Our teams of attentive and devoted experts are on hand to provide revitalizing seawater therapies, offer a wide range of holistic treatments inspired by local techniques, and share advice on fitness. A network of more than 570 luxury spas, more than 900 fitness clubs and 14 Thalassa wellness centers.
UNRIVALED EXPERTISE IN THE RESIDENTIAL SEGMENT
Apart from its well-known hotel brands, Accor manages hotel service establishments for longer stays and upscale private residences. The apartmentsandvillas.accor.com website is dedicated to rentals and stays of up to 120 days in more than 60,000 apartments, villas and chalets.
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ACCOR — 2021 Integrated Report 41
Accor, a resolutely innovative Group
INNOVATION
Over the last 50 years, Accor has considerably expanded its footprint and built up an attractive ecosystem around an extensive portfolio of differentiated brands and a wealth of services.
The hospitality sector is evolving increasingly rapidly, not only driven by constant digital innovation but also in view of changing lifestyles as the expectations and needs of guests, employees and partners evolve along with the challenges of sustainable development. The agility and organization implemented by Accor has helped anticipate future trends in these markets and to position the Group at the foref ront of these changes.
A stimulating innovation ecosystem Accor’s innovation ecosystem spans its entire organization, calling on five main contributors:
Innovation lab Steering and catalyzing the Group's innovation, observing trends, supporting the Group's transformation, creating new services.
Marketing, digital and e-commerce Innovation in customer relationships, concepts and new experiences, with an emphasis on personalization, new technologies, artificial intelligence (AI) and interactivity with guests and partnerships.
Talent & Culture Identifying and championing employees, managerial and cultural transformation for multi-disciplinary teams.
Hotels Implementing transformation and testing Group innovations.
For several years, Accor has been committed to a dynamic of open innovation in order to stimulate the creativity of a large internal and external community and to support new uses, new generations as well as new businesses and challenges.
It enables the Group to anticipate economic, environmental and societal changes with agility and to accelerate value creation for and with its guests, partners and employees.
The Accor innovation ecosystem aims to:
• stimulate internal innovation, notably through “intrapreneurship” and mentoring programs. In 2021, for example, Accor supported the creation of start-up Full Soon, which offers a predictive service for restaurant footfall levels. Currently being tested in several Accor and non-Accor restaurants, the solution is already producing convincing results, with 90% accuracy of forecasts;
• create in-house brands and concepts: greet, JO&JOE, Le Loft, Flying Nest and most recently Emblems;
• acquire new brands in order to penetrate new business sectors and markets, and round out the Group’s expertise (D-Edge);
• develop the Group’s Business Accelerator activities;
• create solid ties with partners throughout the world, especially with other major Groups of international dimension.
Open innovation, an internal driver for the hospitality of the future
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42 ACCOR — 2021 Integrated Report
Co-innovate alongside the leaders of the future
A partnership logic: start-ups, large groups and schools Accor also establishes innovation partnerships with external players located at the crossroads between hospitality and technology, thus creating endeavors that can be used in its ecosystem to maximize their growth. To identify new projects and test concepts that enhance the guest experience, Accor has adopted a co-development and co-creation approach enabling faster anticipation of changes, more agile adaptation and an accelerated transformation to societal and environmental challenges.
While start-up and tech partners allow Accor to imagine the experiences that will shape tomorrow’s hospitality, its talents are nonetheless the essence of its wealth.
This is why the Group establishes key partnerships with top schools worldwide, in order to consolidate its attractiveness among higher education students, future leaders in the world of hospitality, and to benefit from their new and innovative vision.
With a network of more than 200 partner schools in its various host countries, Accor organizes two annual challenges for students aimed at encouraging and promoting its open innovation approach:
• the TakeOff competition, which brings together more than 500 students from business schools, hotel management schools and universities;
• the Accor Design Award, which brings together more than 300 designers from design, architecture and interior design schools.
During the challenges, candidates offer new solutions to a range of strategic issues such as the loyalty program, F&B services, the commitment of guests and employees to sustainable development and even imaging and design the hospitality of the future.
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ACCOR — 2021 Integrated Report 43
OUR STRATEGY
A simplified, expanded and more agile business model
Over the past three years, the disposals of 70% of AccorInvest and 85.8% of Orbis and the sale and management-back of 16 Mövenpick hotels have significantly reduced the size of Accor’s asset portfolio and its overheads (rents and investments) and Accor now owns just 3% of its hotel assets directly or via leases, versus 26% in 2018. With its asset-light profile, the Group now operates 59% of its network under management contracts and 37% under f ranchise agreements, thereby reducing the volatility of its earnings.
The remaining 3% of hotels correspond mainly to those operated under ownership and lease arrangements by Mantra in Australia, and hotels operated under variable leases in Brazil.
In an environment shaped by swift change in guests’ habits and the need to rethink the codes for the hotels of tomorrow, Accor has redefined its business model by selling almost all of the real estate it previously owned. At the same time, it has used its acquisitions and partnerships to build a hospitality ecosystem geared toward increasing its sources of revenue in growing areas and profitable segments, and to acquire new brands, new services and new rewards for its guests and partners.
Accor has structured its core business around the concept of augmented hospitality, reflecting a sophisticated vision of hospitality and bespoke services to provide guests, travelers, workers and local residents unique experiences.
HOSPITALITY BRANDS
BEYOND HOTELS
Y O U R P R O C U R E M E N T P A R T N E R
TOP-TIER PARTNERS
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44 ACCOR — 2021 Integrated Report
Hotel management contracts are contracts under which owners entrust Accor with the management of their hotel in order to optimize profitability. In this format, the owner chooses Accor to benefit f rom recognized hotel know- how and to capitalize on the attractiveness of its brands, its loyalty program, its sales performance and its marketing actions, as well as the power of its booking platform.
The hotel owner under takes to allocate Accor budgets consistent with the objectives set , and to invest regularly in the hotel to maintain the standards of the brand. The owner is also responsible for the risks linked to operating the hotel, except in the event of gross negligence by Accor in its management. Accor does not control the operations of hotels under management contracts, nor does it record any of their revenue or profit.
Management contracts are signed for an average term of 15 years.
Accor receives two types of compensation: (i) a management fee corresponding to a percentage of the revenue generated by the hotel, and a performance fee indexed to the hotel’s operating performance; and (ii) fees for the various services including brand use, distribution, sales, marketing and the loyalty program.
Franchise agreements are contracts whereby Accor offers hotel owners access to a brand, as well as distribution, sales, marketing and loyalty services. Hotels also have access to other services, including the Group’s centralized purchasing system and Académie Accor for employee training.
Accor is compensated in the form of trademark, distribution, sales, marketing and loyalty fees. Where applicable, it also receives fees for ancillary services. Guaranteeing the operational know-how, reputation and image of its brands, of which it sells the right to use, Accor is responsible for managing its network, training franchisees and providing technical and commercial support to ensure the proper implementation of its concepts.
Each brand has its own standards, and f ranchisees are removed f rom the network if they fail to comply with them; the main risk for Accor is loss of control of its brand and its image. The Group accordingly ensures compliance with the specifications through regular quality audits.
Franchise agreements are signed for an average term of 15 years. They can, however, be terminated early at the f ranchisor’s request in some special cases, including:
• if the f ranchisee is legally incapable of performing the activity;
• if the f ranchisee fails to apply the terms of the contract with respect to the concept or supplies;
• if the f ranchisee provided false information about him or herself before signing the contract.
When the termination is at the initiative of the franchisor, it is entitled to claim financial compensation equivalent to the total amount of the remaining fees stipulated in the contract.
Type of fees Management
contract Franchise
agreement
Brand + +
Base management + -
Incentive + -
Sales & Marketing + +
Distribution + +
Loyalty + +
97% of the network under management and franchise contracts.
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ACCOR — 2021 Integrated Report 45
1 Including acquisitions and partnerships completed in 2018.
Although sales of AccorInvest hotel portfolio assets since 2018 did little to change the shape of the Accor network in the luxury and upscale segments (gain of 5 points vs. 2017 1) and did not change the proportion of f ranchised hotels, it did change the proportion of management contracts in the economy and midscale segments, since the contracts governing hotels that were previously owned and leased by Accor have been converted to this more profitable management style.
Management contracts and f ranchise agreements now account for 96% of hotels in the economy segment (up 32 points vs. 2017), 98% in the midscale segment (up 25 points vs. 2017), and 98% in the luxury and upscale segments (up 9 points vs. 2017).
OWNED & LEASED
FRANCHISED
MANAGED
MIDSCALE ECONOMYLUXURY &
UPSCALE
2%
80%
2% 4%
56% 44%
18%
42% 52%
Hotel portfolio by segment and operating structure at December 31, 2021 (as a % based on number of rooms)
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46 ACCOR — 2021 Integrated Report
Hotel portfolio by brand and operating mode at December 31, 2021
Trademarks Owned & leased hotels Managed Franchised TOTAL
Hotels Number of rooms Hotels Number of rooms Hotels
Number of rooms Hotels
Number of rooms
RAFFLES 0 0 20 2,921 0 0 20 2,921
FAIRMONT 1 53 81 32,202 1 258 83 32,513
BANYAN TREE 0 0 2 341 0 0 2 341
SOFITEL 3 675 115 28,680 4 1,545 122 30,900
RIXOS 0 0 16 5,363 14 4,656 30 10,019
SLS 0 0 8 2,151 1 297 9 2,448
DELANO 0 0 0 0 1 1,114 1 1,114
THE ORIGINALS 0 0 4 888 1 71 5 959
REDBURY HOTELS 0 0 0 0 2 356 2 356
SO 0 0 9 1,408 0 0 9 1,408
GLENEAGLES 0 0 1 233 0 0 1 233
EMBLEMS 0 0 0 0 0 0 0 0
FAENA 0 0 2 226 0 0 2 226
Luxury 4 728 258 74,413 24 8,297 286 83,438
HOXTON 0 0 8 1,391 2 357 10 1,748
HYDE 0 0 2 336 1 400 3 736
MONDRIAN 0 0 4 921 3 523 7 1,444
PULLMAN 4 1,830 110 30,937 31 9,607 145 42,374
MGALLERY 1 111 64 7,948 56 4,879 121 12,938
SWISSÔTEL 1 238 26 12,524 9 2,359 36 15,121
GRAND MERCURE 0 0 35 8,693 23 4,420 58 13,113
THE SEBEL 0 0 13 1,201 20 1,160 33 2,361
MANTIS 0 0 21 640 2 14 23 654
ART SERIES 6 1,583 1 251 0 0 7 1,834
PEPPERS 3 380 22 4,259 2 104 27 4,743
MÖVENPICK 1 333 85 20,441 25 5,125 111 25,899
25 HOURS 0 0 15 2,672 0 0 15 2,672
Upscale 16 4,475 406 92,214 174 28,948 596 125,637
NOVOTEL 13 2,277 335 73,544 176 28,131 524 103,952
NOVOTEL SUITES 0 0 21 2,892 14 1,428 35 4,320
MERCURE 2 326 255 42,586 642 76,095 899 119,007
ADAGIO 0 0 62 7,576 12 1,172 74 8,748
MANTRA 20 3,145 47 11,084 10 634 77 14,863
MAMA SHELTER 0 0 15 2,148 0 0 15 2,148
TRIBE 0 0 2 209 2 149 4 358
Midscale 35 5,748 737 140,039 856 107,609 1,628 253,396
Multibrand 1 51 24 3,911 20 1,921 45 5,883
IBIS 41 7,667 460 75,878 758 74,882 1,259 158,427
IBIS STYLES 4 820 107 19,128 483 43,200 594 63,148
IBIS BUDGET 15 3,634 218 27,383 425 35,254 658 66,271
ADAGIO ACCESS 0 0 43 4,459 5 588 48 5,047
HOTELF1 0 0 66 5,836 81 5,555 147 11,391
JO&JOE 0 0 4 895 0 0 4 895
BREAKFREE 1 186 20 3,032 2 152 23 3,370
greet 0 0 0 0 10 811 10 811
ECONOMY 61 1,307 918 136,611 1,764 160,442 2,743 309,360
TOTAL 117 23,309 2,343 447,188 2,838 307,217 5,298 777,714
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ACCOR — 2021 Integrated Report 47
Hotel acquisitions… Since 2016, the Group has expanded its portfolio of brands in the luxury and premium segments by investing in names conveying the promise of unmatched experiences executed perfectly. Satisfying demand for bespoke experiences requires the Group to forget standardized services and to embrace high-level personalization as a means of surprising guests, exceeding their expectations and making their stays exceptional.
Accor strives constantly to boost its customer appeal, to secure their preference and stand out f rom the pack through attention to detail in each service and the special treatment given to guests. The Fairmont, Raffles and Swissôtel brands have greatly improved the Group’s skills in this respect, and helped develop the practices of the other differentiated brands in the portfolio.
Following the acquisitions of FRHI and BHG in 2016 and 2017, Accor expanded its brand portfolio further in 2018, taking it into innovative and high-value segments to achieve a broad balance among the identities and positioning of each brand. These acquisitions increased the geographic density of its network and enabled the Group to gain market share in dynamic regions in Asia-Pacific, Latin America and the United States. In total, the acquisitions of Mantra, Atton, Mövenpick and 21c Museum represented an investment of €1.8 billion.
An offer of innovative and exclusive services Accor has also enriched its catalog of customized services (John Paul) and other services in events, f ine dining and entertainment (Paris Society and Potel & Chabot). The Group has also extended its accommodation activities to the rental of private residences (onefinestay) and coworking spaces (Wojo, Mama Works), and expanded into digital services for independent hotels (D-Edge) and distribution activities such as private sales of hotel accommodation and luxury vacations (VeryChic). In 2018, Accor continued its diversification strategy, acquiring Gekko and ResDiary to extend distribution with business customers and restaurants. In 2019, the Group acquired 40.6% of Ken Group, an upscale sports club operator in Paris.
...and hotel partnerships to enhance and densify the network in expanding areas Over the last five years, Accor has entered into numerous partnerships with Huazhu, Mama Shelter, 25hours, Orient Express, Banyan Tree and Rixos to expand its brand portfolio and diversify its network in terms of geography and segment. Accor’s hotel partnerships with other companies generally serve three specific objectives:
• increase the Group’s revenue by expanding its network (number of hotels, geographic density), i.e., the number of f ranchise agreements and management contracts, including for non-branded establishments;
• distribute new concepts (resort, lifestyle, collections, rentals of private residences) and the brands that house them to cover all the aspirations of travelers;
• increase its active customer base by multiplying touchpoints (qualitative approach) and combining its loyalty program with that of other partners (quantitative approach).
Thanks to these operations, Accor’s development is very dynamic and represents a real asset at a time when the Group, like all of its competitors, needs to consolidate its market share around the world and extend its leading positions, while raising the bar in terms of the return on investment in development. Accor accordingly continued initiatives in the lifestyle segment, where value-creation potential remains very significant.
In its search for new markets and diversification, Accor has also entered into various hotel partnerships to broaden its range of hotel offers.
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48 ACCOR — 2021 Integrated Report
Reinforcement of the lifestyle brand portfolio This segment has witnessed the strongest growth in recent years and reflects travelers’ aspirations for incomparable experiences. Extremely attractive, the lifestyle segment reflects a way of being, thinking and living for travelers on a quest for meaning in their purchases and their relationship with the world. They want unique and inspiring experiences reflecting their values and lifestyle. Over the past few years, Accor has been seizing every opportunity to invest in this fast-growing segment around the world:
• The Group’s offerings have met with resounding success in the economy segment thanks to Jo&Joe hostels with modular facilities attracting millennials. Accor also launched the greet brand in 2020, a committed unstandardized community, combining environmental concerns with a societal dimension and a quest for authenticity. Today’s changes in consumption patterns come with great expectations in terms of brand purpose, sustainable development policy and corporate social responsibility;
• Accor expanded its presence in the midscale lifestyle segment with the 2019 launch of the TRIBE brand, targeting travelers seeking quality hotel experiences at affordable prices. TRIBE’s offerings are original, exciting and well thought out, with an emphasis on style, with lively establishments attentive to ease of use, esthetics and comfort, allowing guests to live work and play in contemporary surroundings;
• Similar options are also available in the luxury segment, where they are synonymous with exclusive experiences and outstanding concepts, with unrivaled quality of service and a new sense of what hotel accommodation can be. The Group expanded its portfolio in 2018 with the acquisition of 21c Museum Hotels and formed a partnership with SBE Entertainment Group.
IN 2021, ACCOR STEPPED UP ITS PRESENCE IN THE
LIFESTYLE SEGMENT WITH THE CREATION OF LEADING
PLATFORM ENNISMORE.
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Strategic partnership with Faena to expand the brand worldwide Faena is one of the world’s most impactful brands in the luxury lifestyle and hospitality industry. Accor has teamed up with Faena to develop the brand in key strategic destinations worldwide, and will manage Faena Buenos Aires and Faena District Miami Beach. The aim of this partnership is to reinvent lifestyle hotels by rolling out revolutionary concepts, anchored in cultural experiences, making these locations new international cultural epicenters. Faena Districts shift the gravitational centers of the cities where they reside, making a difference in their communities. This endeavor will result in pioneering businesses which specialize in the development of one-of-a-kind, socially responsible, holistic environments, anchored in cultural experiences ranging f rom residences and hotels, art and cultural spaces. Alan Faena will work in partnership with Accor to break new ground, developing Faena Districts in select global destinations. These Districts will serve as Accor’s model to help achieve its vision and global expansion ambitions. This new venture will strengthen Faena’s personal and distinctive approach and should become a catalyst for exponential growth.
New entity Ennismore is now the leading lifestyle hotel operator, boasting the fastest growth worldwide On 4 October 2021, through an all-share merger, Accor became the majority shareholder in Ennismore, a new entity in which the Group holds 66.67%, with the remaining 33.33% held by Mr Sharan Pasricha. This new lifestyle platform combines Ennismore's recognized expertise in building meaningful brands, driven by ultra-creative storytelling, unique design and authentic experiences, with Accor's network and distribution strength. At the same time as this operation, Accor deconsolidated the leased hotel assets into a separate structure, created in partnership with a fund managed by Keys REIM, the majority shareholder with a 51% stake, while the Accor and Ennismore subsidiaries each own 24.5% of the new entity. The new asset-light entity Ennismore has 14 hotel and co-working brands, as well as a rich and varied collection of over 150 restaurants and nightlife hotspots. The Ennismore portfolio now includes 87 establishment, with 141 firm plans to open worldwide, under the unique brands 21c Museum Hotels, 25hours, Delano, Gleneagles, Hyde, JO&JOE, Mama Shelter, Mondrian, Morgans Originals, SLS, SO/, The Hoxton, TRIBE, and Working From. The Ennismore team brings together talented professionals, designers and creators f rom the hospitality industry and other sectors, including an in-house creative office, an integrated platform for developing restaurant and bar concepts, and a lab dedicated to technological innovations and digital products that collaborate to create brands and invite discovery. Based on the current network and pipeline the lifestyle platform should generate medium-term EBITDA of over c. €100 million, and capture significant cost synergies of approximately €15 million per year. Together, these brands reinforce Accor’s lifestyle ecosystem and give it one of the industry’s most comprehensive brand portfolios.
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The Group’s development and geographic footprint
Development driven by organic growth Enjoying strong momentum despite the health crisis, in 2021 Accor saw its network grow by 40,643 rooms (288 hotels) in organic terms and 1 , 9 8 1 r o o m s ( 1 1 h o te l s ) t h r o u g h acquisitions. Accor’s development covered all segments, predominantly the midscale (34%) and economy (32%) segments and to a lesser extent, the luxury and upscale segments (34%).
G l o b a l l y, t h e M e r c u r e , I b i s a n d Novotel brands account for 59% of Group development. The luxury and upscale segment grew by 4.7% in 2021, primarily through the Movenpick, Hoxton, Fairmont and Sofitel brands.
Benefiting f rom growth of 2.5% over the year, the midscale segment owes 93% of its development to the Mercure, Novotel and Adagio brands, while growth in the economy segment (2.9%) reflects the expansion of the ibis family, which continues to unveil its significant potential across the world.
Geographically, 68% of openings in 2021 concerned regions outside Europe: 40% in Asia-Pacific with the Mercure, ibis, Sof itel and Novotel brands, 15% in India, Middle-East, Af rica, Turkey thanks to Movenpick, ibis, Novotel and SLS, and 12% in the Americas with ibis, Novotel, Hoxton and Mercure.
Breakdown of hotel openings by segment at December 31, 2021 (as a % based on number of rooms)
15% IMEAT
40% ASIA-PACIFIC
12% AMERICAS 21%
NORTH EUROPE
11% SOUTH EUROPE
34% LUXURY
& UPSCALE
32% ECONOMY
34% MIDSCALE
Gross openings by region at December 31, 2021 (as a % based on number of rooms)
15% IMEAT
40% ASIA-PACIFIC
12% AMERICAS 21%
NORTH EUROPE
11% SOUTH EUROPE
34% LUXURY
& UPSCALE
32% ECONOMY
34% MIDSCALE
Europe accounted for 32% of openings, mainly under the ibis, Mercure, Hoxton and Novotel brands.
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Global coverage of all markets
Accor operates on six continents in all market segments, f rom economy to luxury. A leader in most geographies (other than China and the United States), Accor is consolidating its network and cementing its positions thanks to strong development and the optimization of its coverage in all regions and segments.
Present in more than 110 countries, Accor is the world’s most diversified hotel operator, particularly in regions with the greatest potential. The Group’s largest market for historical reasons
is Europe, home to Accor’s densest n e t wo r k , w i t h 3 , 0 5 5 h o te l s a n d 342,444 rooms representing 44% of its total portfolio by number of rooms at end-2021. At the same time, Accor has new growth drivers in other parts of the world, such as in Asia-Pacific with 1,285 hotels (31% of rooms), Nor th America, Central America & the Caribbean and South America with 539 hotels (13% of rooms) and the Middle East & Af rica with 419 hotels (12% of rooms).
Accor currently ranks as the leading hotel operator in Europe and Asia- Pacific (excluding China), where it has the broadest footprint. The Group’s portfolio is geographically balanced and resilient. With a balanced presence globally, each year, Accor strengthens its leading positions.
Hotel chain penetration is still low globally and growth potential is very high, based on projected growth in tourism out to 2030. In 2021, in France, chains only account for 18% of hotels.
Present in more than 110 countries.
Leading hotel operator in Europe and Asia-Pacific.*
* Excluding China.
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52 ACCOR — 2021 Integrated Report
Hotel portfolio by region and brand at December 31, 2021
Brands
South Europe
North Europe
IMEAT ASPAC Americas TOTAL
Hotels Number of rooms Hotels Number of rooms Hotels
Number of rooms Hotels
Number of rooms Hotels
Number of rooms Hotels
Number of rooms
RAFFLES 2 213 1 106 7 1,319 10 1,283 0 0 20 2,921
FAIRMONT 2 1,028 9 2,277 16 5,203 12 4,152 44 19,853 83 32,513
BANYAN TREE 0 0 0 0 2 341 0 0 0 0 2 341
SOFITEL 14 2,033 12 3,268 27 6,648 53 15,365 16 3,586 122 30,900
RIXOS 0 0 9 1,893 21 8,126 0 0 0 0 30 10,019
SLS 0 0 0 0 1 575 0 0 8 1,873 9 2,448
DELANO 0 0 0 0 0 0 0 0 1 1,114 1 1,114
THE ORIGINALS 0 0 2 354 2 296 0 0 1 309 5 959
REDBURY HOTELS 0 0 0 0 0 0 0 0 2 356 2 356
SO 1 151 3 397 0 0 4 610 1 250 9 1,408
GLENEAGLES 0 0 1 233 0 0 0 0 0 0 1 233
EMBLEMS 0 0 0 0 0 0 0 0 0 0 0 0
FAENA 0 0 0 0 0 0 0 0 2 226 2 226
Luxury 19 3,425 37 8,528 76 22,508 79 21,410 75 27,567 286 83,438
HOXTON 2 365 4 733 0 0 0 0 4 650 10 1,748
HYDE 0 0 0 0 1 276 0 0 2 460 3 736
MONDRIAN 0 0 1 120 1 270 1 295 4 759 7 1,444
PULLMAN 14 4,014 13 3,296 16 5,721 90 25,824 12 3,519 145 42,374
MGALLERY 40 3,277 19 2,069 10 1,415 36 4,385 16 1,792 121 12,938
SWISSÔTEL 0 0 7 1,400 10 5,363 15 6,938 4 1,420 36 15,121
GRAND MERCURE 0 0 0 0 8 1,590 42 9,722 8 1,801 58 13,113
THE SEBEL 0 0 0 0 0 0 33 2,361 0 0 33 2,361
MANTIS 0 0 3 114 17 517 1 4 2 19 23 654
ART SERIES 0 0 0 0 0 0 7 1,834 0 0 7 1,834
PEPPERS 0 0 0 0 0 0 27 4,743 0 0 27 4,743
MÖVENPICK 0 0 20 4,312 70 16,489 21 5,098 0 0 111 25,899
25 HOURS 2 410 12 1,828 1 434 0 0 0 0 15 2,672
Upscale 58 8,066 79 13,872 134 32,075 273 61,204 52 10,420 596 125,637
NOVOTEL 143 20,735 127 24,653 61 12,412 144 36,851 49 9,301 524 103,952
NOVOTEL SUITES 22 2,458 7 1,040 3 383 3 439 0 0 35 4,320
MERCURE 308 30,038 277 36,590 31 5,601 223 38,692 60 8,086 899 119,007
ADAGIO 40 4,471 20 2,304 9 1,432 0 0 5 541 74 8,748
MANTRA 0 0 0 0 0 0 76 13,686 1 1,177 77 14,863
MAMA SHELTER 8 1,198 4 702 0 0 0 0 3 248 15 2,148
TRIBE 2 149 1 83 0 0 1 126 0 0 4 358
Midscale 523 59,049 436 65,372 104 19,828 447 89,794 118 19,353 1,628 253,396
NO BRAND 9 637 6 459 7 1,101 22 3,363 1 323 45 5,883
Multibrand 9 637 6 459 7 1,101 22 3,363 1 323 45 5,883
IBIS 453 41,717 283 39,921 80 14,468 263 35,874 180 26,447 1,259 158,427
IBIS STYLES 266 19,955 135 14,642 14 2,658 130 19,387 49 6,506 594 63,148
IBIS BUDGET 383 30,308 159 18,349 4 484 48 5,620 64 11,510 658 66,271
ADAGIO ACCESS 43 4,379 5 668 0 0 0 0 0 0 48 5,047
HOTELF1 147 11,391 0 0 0 0 0 0 0 0 147 11,391
JO&JOE 3 780 1 115 0 0 0 0 0 0 4 895
BREAKFREE 0 0 0 0 0 0 23 3,370 0 0 23 3,370
greet 9 617 1 194 0 0 0 0 0 0 10 811
ECONOMY 1,304 109,147 584 73,889 98 17,610 464 64,251 293 44,463 2,743 309,360
TOTAL 1,913 180,324 1,142 162,120 419 93,122 1,285 240,022 539 102,126 5,298 777,714
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ACCOR — 2021 Integrated Report 53
At the end of 2021, Accor operated 5,298 hotels (777,714 rooms) around the world and plans to open 1,218 additional hotels (214,000 rooms) within the next five years.
A firm footprint in emerging markets The Accor network has undergone a significant transformation over the past five years as a result of property restructuring between 2014 and 2021, and the expansion of the brand portfolio. At the same time, the Group has focused its organic development exclusively on hotel management and f ranchising.
At December 31, 2021, 98% of Accor’s hotels in Asia-Pacific were operated under management contracts and f ranchise agreements. The Americas and IMEAT regions have 88% and 97% of hotels under management contracts and f ranchises respectively. Whereas Europe had the lowest proportion of hotels under management contracts and franchise agreements before the change in the Group’s model, in 2021 the level stood at 99% for both North and South Europe. Europe was the region where the majority of assets were transferred f rom Accor to AccorInvest.
Hotel pipeline by region at December 31, 2021 (as a % based on number of rooms)
Hotel portfolio by region and operating structure at December 31, 2021
Managed Franchised Owned & leased TOTAL
Hotels Number of rooms Hotels Number of rooms Hotels
Number of rooms Hotels
Number of rooms
SOUTH EUROPE 483 65,853 1,427 113,081 3 1,390 1,913 180,324
NORTH EUROPE 583 92,660 552 67,874 7 1,586 1,142 162,120
IMEAT 336 76,264 66 13,856 17 3,002 419 93,122
ASIA-PACIFIC 672 152,969 581 81,505 32 5,548 1,285 240,022
AMERICAS 269 59,442 212 30,901 58 11,783 539 102,126
TOTAL 2,343 447,188 2,838 307,217 117 23,309 5,298 777,714
21% IMEAT
45% ASIA-PACIFIC
7% AMERICAS
19% NORTH EUROPE
8% SOUTH EUROPE
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54 ACCOR — 2021 Integrated Report
Hotel portfolio by region and by segment at December 31, 2021 (as a % based on number of rooms)
LUXURY & UPSCALE
ECONOMY
MIDSCALE
NORTH EUROPE
ASIA- PACIFIC
IMEAT AMERICASSOUTH EUROPE
6 %
33 %
14 % 34 %
40 %
39 %
61 % 46 %
27 %
59 %
37 %
22 %
19 %
19 %
44 %
Accor’s growth and diversification moves in recent years have consolidated its locations in fast-growing areas.
12 %
IMEAT
31 %
ASIA-PACIFIC 13
% AMERICAS
21 %
NORTH EUROPE 23
% SOUTH EUROPE
27 %
LUXURY & UPSCALE
40 %
ECONOMY
33 %
MIDSCALE
Hotel portfolio by region at December 31, 2021 (as a % based on number of rooms)
In 2021, 45% of the pipeline was located in Asia-Pacific.
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At December 31, 2021, the luxury and upscale segments accounted for 27% of the Accor network, up 1 point relative to 2019. Brands acquired and launched in this segment in recent years are strategic because they have significantly improved the Group’s image, its portfolio of offers and the range of its skills, and are more profitable.
The range of more than 40 hotel brands offered by Accor covers all segments. Their strong international development, particularly in fast-growing regions, allows the Group to take full advantage of long-term growth in the global hotel market.
Pipeline by segment at December 31, 2021 (as a % of number of rooms)
A broader footprint in the luxury and upscale segments The Group’s development has focused on the most profitable segments to increase the weighting of high-value markets in its brand portfolio. Between 2015 and 2021, the weight of the luxury and upscale segments increased by 159%, compared with growth of 52% in the network as a whole.
In December 2021, Orient Express makes a grand return to Italy with La Dolce Vita train. From the luxury rail tourism project signed by Arsenale S.p.A., now in association with Orient Express of Accor Group, comes the Orient Express La Dolce Vita which will welcome its f irst passengers in 2023. Six trains will embark through several iconic itineraries across 14 regions and beyond, including three international destinations f rom Rome to Paris, Istanbul and Split.
In November 2021, Accor introduces Emblems Collection, a captivating portfolio of unique luxury hotels.
Hotel portfolio by segment at December 31, 2021 (as a % of number of rooms)
12 %
IMEAT
31 %
ASIA-PACIFIC 13
% AMERICAS
21 %
NORTH EUROPE 23
% SOUTH EUROPE
27 %
LUXURY & UPSCALE
40 %
ECONOMY
33 %
MIDSCALE
LUXURY & UPSCALE
ECONOMY
MIDSCALE
2021
39%
38%
24%
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Investments to consolidate the Group’s digital and retention capacity
Faced with technological advances that are modernizing hotel codes, and the swift change in guests’ habits, Accor has spent the last two years developing its ecosystem of offers and services in a comprehensive approach to digital challenges in order to offer personalized assistance, f resh new offers and bespoke experiences.
A strategy focused on the expectations of guests and partners
Reinforced by its asset-light model, Accor offers travelers and hotel owners a comprehensive, attractive and innovative ecosystem of offers that can meet all of their expectations. Doing everything possible to encourage this preference in recent years, Accor has invested heavily in:
• increasing its digital capacity to deal efficiently and in a customized way with a growing volume of data and demands f rom travelers.
• implementing high-quality support consisting of multiple distribution channels optimizing footfall in hotels, and the best solutions for optimizing their revenue,
performance, profits, asset management and the personalization of experiences.
Accor subsidiary D-Edge, a supplier of reservation systems for hotels, and dailypoint, a customer data management solution, decided to join forces in 2019 by combining the D-Edge CRS and the dailypoint CRM and customer data management platform to offer an integrated data management solution, dedicated to hotel operators.
PARTNERSHIP BETWEEN D-EDGE AND DAILYPOINT Now key for operators, CRMs have become the benchmark in terms of customer management. The partnership gives D-EDGE access to unique expertise
in creating a centralized, automated customer profile, using the industry’s most sophisticated data cleansing algorithms. In addition, specific artificial intelligence-driven processes provide unique information about guests at all possible touchpoints. This fully integrated solution allows hotel operators to manage their guests’ entire travel journey while significantly improving their sales through personalized and efficient customer data management. Holding the promise of fluidity, digital technology heightens Accor’s relational and organizational efficiency.
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LAUNCHING OF AN INSTANT BOOKING SOLUTION FOR GROUPS Accor and Groups360 announced the international launch of GroupSync, Groups360’s cloud-based technology solution for meetings and events, to provide instant online booking for groups, a simplified RFP process, and housing solutions across Accor’s global portfolio. Accor will offer the instant online booking solution for group rooms on GroupSync to the majority of their more than 5,200 properties worldwide. Accor properties are also showcased in the GroupSync Marketplace for streamlined digital RFPs and instant group bookings. Accor goes further by giving its properties the opportunity to choose GroupSync Optimize for room-block management solutions and housing packages. GroupSync Optimize will also power voucher and gift certificate packages for Accor brands in select markets. Early adopters who have used GroupSync Optimize for housing and voucher sales have seen a 25 percent increase in revenue with little to no extra effort.
The challenges of digital transition Increased competition from digital players and new consumption patterns of travelers in one of the most digitalized sectors poses many technological challenges. A prolific vector of innovation, digital technology pervades all of the Group’s activities, f rom its range of services to its IT and booking inf rastructure and communication methods... It also enhances the comfort of hotel rooms, brings the Group closer to travelers through tailor-made solutions, thereby optimizing their experiences.
STRONGER DISTRIBUTION CAPACITIES To keep up-to-date with the latest market innovations available and enable its guests to take advantage of them, Accor collaborates with technology partners who are leaders in their areas. For the past few years, Accor has been customizing its offerings by applying the power of deep learning to its databases in order to accurately identify future buyers of its offers and to control the marketing pressure exerted on them by adapting to their needs and tolerance of marketing drives. The Group uses artificial intelligence to maximize the overall performance of its marketing campaigns, which must be personalized and efficient. Its messages, whether they concern destinations, lifestyle themes or niche products such as luxury hotels, have gained commercial efficiency, and guests have better experiences with brands thanks to carefully dosed marketing pressure.
PARTNERSHIP WITH ALIBABA TO DEVELOP JOINT INITIATIVES TO DIGITIZE GLOBAL TOURISM In 2019, Accor entered into a strategic par tnership with Alibaba for the development of a range of digital apps and loyalty programs aimed at improving the consumer and traveler experience. The partnership leverages nearly 700 million consumers across the various Alibaba marketplaces by offering Chinese travelers better access to Accor’s international offers.
PARTNERSHIP BETWEEN THE RUGBY WORLD CUP FRANCE 2023 ORGANISING COMMITTEE AND RESAEVENTS Developed for Rugby World Cup 2023, the company relies on operational teams f rom the hotel world and uses a n i n n ova t i ve b o o ki n g p l a t fo rm to market this major sporting event. Under the guidance of the organising committee, ResaEvents will operate the off icial hotel booking platform for the entire event, building on a new platform developed in collaboration with Gekko, subsidiar y of Accor, a B2B specialist in hotel distribution and loyalty platforms. Thanks to its thorough operational and f inancial monitoring ability, hoteliers marketed on the platform can maximize their revenue and occupancy rates during the tournament. More than 700 independent and chain hotels are already listed on the platform. T h e t e c h n o l o g y d e v e l o p e d b y ResaEvents for Rugby World Cup 2023 will in the future benefit other major event organisers, notably due to its fast interface with existing IT environments and its ability to enhance guest-hotel relationships.
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To strengthen its distribution, build its guests’ loyalty and give its brands an indelible impact throughout the world, Accor unveiled a new promise in February 2019. The new “ALL – Accor Live Limitless” program will combine the Group’s distribution platforms with a new experiential loyalty program. Program members access a comprehensive range of services and experiences that represent more than just a night’s stay, combined with advantages par tnerships with other players, including AEG, IMG, the Paris Saint Germain football club, etc. These partnerships, applauded by the Group’s guests, formed with some of the biggest names and guaranteeing high exposure, are designed to increase the international visibility of Accor’s loyalty program and brands, and to augment the efficiency of its distribution networks.
STRONGER CUSTOMER RECOGNITION AND PERSONALIZATION In 2018, Accor started rolling out the Accor Customer Digital Card database, which enables all group hotels to share their knowledge of guests (consumption habits, special expectations in terms of reception, service, etc.), creating a powerful tool to personalize its relationship with them by understanding their aspirations.
A UNIFYING LOYALTY PROGRAM ALL-ACCOR LIVE LIMITLESS For several years now, loyalty club members have wanted more f rom their programs: simplicity, immediacy, variety and tailor-made offers.
INTEGRATION OF THE FAIRMONT, RAFFLES AND SWISSÔTEL LOYALTY PROGRAMS The integration of the Fairmont, Raffles and Swissôtel loyalty programs into the Accor program increased the opportunities to earn points and extended the range of privileges, rewards and exceptional experiences offered to members.
PARTNERSHIP WITH HUAZHU TO STRENGTHEN TIES WITH CHINESE TRAVELERS In addition to Accor’s development in China through Huazhu since 2014, the strategic alliance between the two Groups strengthens the Accor d i s t r i b u t i o n s y s te m a n d l oya l t y program among Huazhu’s Chinese customers.
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PARTNERSHIP WITH AIR FRANCE-KLM TO TARGET THE AIRLINE’S CUSTOMERS Serving people who travel by air and stay in hotels, Accor and Air France-KLM decided to strengthen their partnership by offering their respective members a dual reward system in Points and Miles during their travels and their stays. Points and Miles, allow members to capitalize on both Groups’ international geographic footprints.
PARTNERSHIP WITH AEG WITH ACCESS TO AEG SPORTING AND CULTURAL EVENTS Accor and AEG, the world leader in sporting events and concerts, strengthened their partnership following an agreement covering a number of AEG-operated venues, festivals and events. This partnership comes on the heels of the 10-year naming contract concluded with the AccorHotels Arena in Paris in 2015, and gives Accor access to AEG’s various international assets.
PARTNERSHIP WITH GRAB FOR EASIER ACCESS TO GRABREWARDS ADVANTAGES Accor concluded a strategic partnership with Grab, the largest loyalty program in south-east Asia, to offer both ALL and Grab members access to various rewards and benefits when traveling. Grab offers a range of services via its super app, including ride-hailing, deliveries, digital payments, etc. Thanks to this partnership, Grab members can use their GrabReward points to access the full range of Accor offers: hotels, bars, nightclubs, sporting events, entertainment and food festivals. Similarly, ALL members will have access to the numerous GrabRewards benefits.
PARTNERSHIP WITH VISA AND BNP PARIBAS, OFFERING NEW PAYMENT POSSIBILITIES Around the world, card payments are expanding rapidly, especially with the advent of “contactless” payment for small value amounts and e-commerce transactions. In response to changing banking practices, Accor is meeting customers’ needs and supporting their everyday lives by launching a payment card through its loyalty program.
The ALL-VISA payment card is a real driving force for strengthening the Group’s “Augmented Hospitality”, a holistic vision of hospitality and bespoke services for everyday life that extends beyond hotel stays. The card represents a key asset for Accor in customer engagement, where new services shall further leverage the position of the Group’s ALL loyalty program as a lifestyle companion with new services. This partnership with BNP Paribas puts one of the cornerstones of Accor’s loyalty-building strategy into practice. The launch of this payment card will also diversify the Group’s revenue streams.
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A business model designed to deliver augmented hospitality
BUSINESS MODEL
A sustainable value-creation model, based on multiple growth drivers
Accor’s business model is unique in the travel industry. Operating 5,300 hotels in 110 countries, the Group is the leader everywhere in the world other than the United States and China.
Boasting unique expertise in hotel operations and high value-added services, Accor has the market’s most comprehensive portfolio of brands, all segments combined, and builds its success on the guest experience.
The experiences offered to travelers match the vision of augmented hospitality that the Group has been developing, based on a comprehensive ecosystem and one promise: ALL – Accor Live Limitless.
Accessible via a single platform, the ALL ecosystem combines the full range of offers from the Group and its partners. Its aim is to increase touchpoints with guests as a means of inspiring lasting loyalty to the products and services it offers.
Promoting guest loyalty is an opportunity for Accor to get to know its guests better and to align its offers as closely as possible with their individual expectations. At the same time, the volume of personal and commercial data used by Accor means that it is increasingly required to secure its technological and distribution capacities by establishing partnerships that speed up its technological development and
bring competitive advantages. This in turn makes for faster growth in footfall generated for hotel operators attentive to the level of fees invoiced, and faster analysis of commercial and financial data from hotels etc.
A pillar of the Group’s growth, the loyalty of its guests boosts its appeal with hotel owners. It supports its organic development, but also the appeal of its brands and the growth of its fees, and helps attract the most value-creating business partners.
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BUSINESS MODEL
A business model designed to deliver augmented hospitality
Augmented hospitality
• 5,298 hotels, 777,714 rooms • 110 countries • 3,500 private residences
& 10,000 bars and restaurants
NETWORK, LEADERSHIP IN EUROPE AND EMERGING REGIONS
• Optimized balance sheet and sound financial structure
• €3.4bn in cash and equivalents • More than €2bn in revenue
FINANCIAL CAPITAL
• 232,000 employees • Talent & Culture Expertise • Corporate culture breeding innovation • Accor Academy • Inclusion and diversity
HUMAN CAPITAL, HIGHLY DIVERSE AND INCLUSIVE
• 114 million night stays • Recognized expertise in hotel
development and management
• More than 40 brands across all segments: - hotel activities
(luxury and upscale, midscale, economy)
- Workspitality - Travel businesses - Digital services - Service companies
EXPERTISE
RESOURCES STRATEGY
Live Work
Play at the service
of a unique guest experience and
sustainable tourism
UNIQUE EXPERIENCES NEW LIFE BALANCE
Megatrends
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62 ACCOR — 2021 Integrated Report
ATTRACT AND RETAIN
PROMOTE POSITIVE HOSPITALITY
STEP UP GROWTH WITH THE ASSET-LIGHT MODEL
Network growth Increase in fees Greater exposure to luxury and lifestyle Dynamic and attractive brands Strengthening loyalty & distribution
Preserving natural resources and biodiversity Protecting employees and local communities Promoting local culture, assets and heritage
A loyalty program with unique brand powerhouse Talent acquisition, development and retention Address new trends Create tomorrow’s experiences
• €1.3bn in wages and staff costs in 2021 • €70m pledged to the ALL Heartist Fund
and more than 200,000 direct and indirect beneficiaries of Accor Solidarity
• 2.7 million hours of training
FOR EMPLOYEES
• Planet 21 Acting Here program • Carbon strategy • Plastic commitment • Plant for the Planet program:
7.4 million trees planted
FOR THE PLANET
• Value creation and dividends policy FOR SHAREHOLDERS AND INVESTORS
• Job creation and social climbing • Local services and offers • €0.1bn to public authorities • Training and insertion of local population
FOR LOCAL COMMUNITIES
• €3bn of purchases by Accor hotels • €0.7bn of purchases
by Accor head offices
FOR SUPPLIERS
VALUE CREATION
Three levers To maximize value creation by Accor
DIGITALIZATION SUSTAINABLE TOURISM
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Streamlining the Group’s organization
To align the structure of Accor SA with that of the Group, Accor has undertaken an in-depth review of its processes to map all its activities and identify any that could be reconsidered with a view to making savings. The idea is to streamline needs and resources by automating internal p r o c e s s e s , p o o l i n g e f f o r t s a n d eliminating any tasks that can be without adversely impacting the Company’s operations.
T h i s o r g a n i z a t i o n a l w o r k h e l p s streamline management structures. The Sales, Marketing, Distribution and Loyalty (SMDL) division also agreed to renegotiate its multiple service agreements, especially in the IT sphere. The Group’s target is to generate €200 million in recurring savings by 2022. After a positive EBITDA impact of €20 million in 2020, the incremental impact was €110 million over the full year in 2021. This figure shows an improvement on the initial target of more than €70 million thanks
to i m p l e m e n t a t i o n o f t h e s t a f f redundancy plan and tight control of consultant costs. In 2022, completion of the plan should have a positive impact on EBITDA of €50 million. To become more agile and efficient a n d to b e tte r t ra ck p ro g re s s o n savings within the chosen timeframe, the Executive Committee was also refocused on the regions, around eight regional hubs, to ensure a better flow of information between operations and central functions.
For hotels and their owners, the challenge i s to i n c rea s e t h e e f fe c t i ve n e s s a n d prof itability of the hotel management model the Group offers them, notably with the following solutions: • offering operating solutions to improve
s e r v i c e q u a l i t y, i n c rea s e e m p l oye e commitm ent an d boost th e appeal of the employer brand.
• reducing staff turnover.
ACCOR’S RESPONSE
• The Heartist® project and the employer promise to value the role of the employee;
• new tools and processes for talent management and training;
• mobilization of teams around societal projects as well as development of new recruitment methods such as through social inclusion;
• a new procurement platform and a revised referencing policy with, in particular, the pursuit of greater sales volumes through partnerships – to reduce procurement costs;
• programs to eliminate food waste, cut energy and water consumption and laundry costs;
• optimization of technical and design processes, as well as optimization of the workings of brand standards, to make them more flexible, and less costly to implement.
STEP UP GROWTH WITH THE ASSET-LIGHT MODEL
The ongoing optimization of Accor’s model is synonymous with optimizing the cost structure to suit the asset-light model, and identifying key resources to meet future challenges.
ACCOR’S RESPONSE A transformation plan designed to streamline the Group's organization was put in place at headquarters and at the regional bases, as well as in Europe, in order to bring resources into line with identified needs.
ATTRACTIVE BRANDS & MOMENTUM
NETWORK GROWTH INCREASE IN FEES
STRENGTHENING LOYALTY & DISTRIBUTION
The virtuous circle of an asset-light
model
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64 ACCOR — 2021 Integrated Report
The development of the hotel network has a decisive influence on Accor’s revenue growth. Two drivers have traditionally been used: • network growth, both organic and through acquisitions; • Growth in the RevPAR ratio, by moving towards the
most profitable segments (luxury, lifestyle, resort, etc.) and types of contracts (management), and by increasing the profitability of hotel floor space through concepts and services that generate revenue.
ACCOR’S RESPONSE Highly dynamic organic growth ensuring the expansion and visibility of the Group’s network in key destinations, in particular in emerging markets where growth is strongest; a strategy covering all segments, specifically the most profitable (luxury, lifestyle, resort, etc.); facilitating the conversion of hotels to accelerate its development; acquisition of hotel networks and signing of partnerships to strengthen regional leadership and its brand portfolio (FRHI, Mövenpick, Mantra, Atton, SBE, BHG, Ennismore, etc.).
With this strategy, Accor is consolidating its leading positions in the regions and segments in which it operates, accelerating its expansion in high growth regions, such as China, thanks to Huazhu, and penetrating the US market in a targeted way through appropriate acquisitions in terms of brands and segments. The intensification of development involves careful work on the pipeline to increase the number of hotels in the network, as well as their quality, which leads to higher fees per room.
ACCOR’S RESPONSE A diversification of its revenue base through the acquisition of travel activities, broadening the Group's distribution and giving it access to new segments (VeryChic, Gekko, ResDiary); acquisition of digital services (D-Edge) allowing hotels and restaurants to increase their online visibility and booking levels, or optimize their procurement costs (Astore); acquisition of private home rental platforms (onefinestay), that offer alternatives to hotel stays; acquisition of personalized concierge services thereby improving guest experiences (John Paul); acquisition of entertainment services in the food (Potel & Chabot) and nightlife spaces (Paris Society).
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Another growth driver within the Group is the rapid increase in touch points within its ecosystem. This involves both increasing the frequency of guest interaction and achieving sources of growth that are not linked to hotel fees.
ACCOR’S RESPONSE Whether through its hotel brands, restaurants, coworking offers and private home rentals, its concierge, convenience and entertainment services, its travel or digital services, or indeed its open innovation strategy designed to identify and test pilot concepts and invest in the most promising start-ups, all these services attract guests with very different expectations who are not necessarily aware of the other services offered by the Accor ecosystem, and can thus be made aware of them. The more varied and f requent opportunities for interaction with guests, the more likely it is that the Group will be able to transform these visits into service requests.
Lastly, Accor’s loyalty program is a key driver of its business model. Encompassing all the Group's offerings, it is intended to sustainably increase the number of loyal guests and their average spend in order to secure a growing percentage of Group revenue.
ACCOR’S RESPONSE As a commercial portal, ALL allows members to explore what Accor has to offer in terms of hospitality and mobility. Launched in December 2019, it is intended to build a relationship of trust with them, better understand their tastes, their interests and their hopes in order to spur them to explore other compatible offerings, regardless of how they have come to the ecosystem. ALL is a remarkable growth driver, enabling the Group to both attract new guests and make new suggestions given the wealth of its global offering while retaining members through attractive benefits and fostering their engagement over time. ALL also regularly partners with other players in the leisure, travel, entertainment (PSG, IMG, AEG, Accor Arena) or loyalty spaces. These partnerships enhance the experience of members and offer them the benefits of other loyalty programs. Such partnerships also benefit Accor because the members of those programs spend within ALL, thus generating additional revenue (Eurostar, Air France, Grab, Alibaba, Visa, etc).
STEP UP GROWTH WITH THE ASSET-LIGHT MODEL
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66 ACCOR — 2021 Integrated Report
PROMOTE POSITIVE HOSPITALITY
PROMOTE POSITIVE HOSPITALITY
ACCOR’S RESPONSE Its Ethics & CSR Charter, applicable in all hotels and all Group activities; Planet 21, Accor’s sustainable development program; the diversity and inclusion program; Solidarity Accor, the endowment fund to fight exclusion; the compliance policy and tools (see details in section 3 “Corporate Responsibility”). 2021 was hard hit by health restrictions imposed throughout the world. Given the critical economic situation experienced by the Accor Group, a very significant number of programs or projects related to the Ethics & CSR approach have been suspended or slowed down. Accor has nevertheless shown its responsiveness and willingness during this extraordinary period to reallocate resources and to firstly target the health and social needs created by the pandemic, and by staying on the path of sustainability. Thus, in March 2021, Accor was the first international Group in the hospitality sector to define an approved carbon trajectory backed by scientific data and aligned with the goals of the Paris Agreement. In this way, the Group has committed to net zero carbon emissions by 2050.
Despite the circumstances, and thanks to the hard work of the teams, Accor was able to stay true to its commitments and efforts on major issues with:
• completion of the climate strategy submission to SBTi (Science Based Targets Initiative). This carbon trajectory meets the target of the Paris Agreement to keep global warming under 1.5°C. With the target of achieving carbon neutrality by 2050, Accor set out the trajectory using a roadmap that combines an internal shift to a low-carbon culture across all the Group’s businesses, partnerships with energy experts to improve the energy efficiency of buildings, procurement of energy f rom renewable sources and carbon offsetting. Details of this roadmap can be found chapter 3of the Universal Registration Document 2021;
• ongoing efforts to eliminate single-use plastic f rom the guest experience by end-2022, despite the tendency to use single-use products for health reasons;
• the implementation of an ALL Heartist Fund solidarity program for employees most affected by the pandemic.
Accor can make a positive contribution to society in two big ways: by developing and connecting people, and by creating environmentally f riendly hospitality experiences. Moreover, its overriding belief is that its activities must be developed with the greatest integrity.
In November 2021, Accor also signed the Glasgow Declaration on climate action in tourism, launched by the UN’s World Tourism Organization with the ambitious target of reducing absolute Scope 1 and 2 emissions b y 4 6% a n d S c o p e 3 e m i s s i o n s by 28% by 2030, compared with the 2019 reference year.* Furthermore, right f rom the start of the outbreak of the pandemic a solidarity fund, the ALL Heartist Fund, was set up. S o f a r , t h e f u n d h a s s u p p o r te d 98,000 requests of employees working at head offices or in hotels under the Accor banner.
* GHG Protocol.
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ATTRACT AND RETAIN
Launched in December 2019, ALL – Accor Live Limitless, Accor’s lifestyle loyalty program, is the cornerstone of the conquest, attractiveness and loyalty approach taken by the Group for its guests and partners. Strengthened by the long list of benef its available through the ALL partnerships, and the extremely wide range of hospitality services on offer, ALL aims to increase the long-term loyalty of its guests and to win new ones. The program’s challenges are simple and key to the Group’s long-term growth: • meet the hospitality and mobility needs of travelers, workers and local residents by offering them the broadest range
of attractive benefits and services; • inspire them to explore other Group offerings regardless of their point of entry into the ecosystem, thanks to a single
portal ensuring a seamless browsing experience; • getting to know each guest through a personalized direct, relationship, building loyalty over time; • forging partnerships that provide even more benefits and rewards for ALL members, and generate additional footfall and
revenue (e.g., Eurostar, Air France, etc.), via partner loyalty programs.
MORE choice and offering
ACCOR’S RESPONSE Augmented hospitality, or how to leverage more offerings for guests to cover both a wider variety of accommodation and concepts [lifestyle, resort, youth hostels and private homes, etc.]; coworking spaces of all sizes, differentiated brands, and the implementation of an ecosystem of solutions spanning the entire tourism value chain (food and beverage, entertainment and leisure, transportation, ticketing, specialized distribution sites, etc.), built up through acquisitions and partnerships.
MORE meaningful and unique experiences
ACCOR’S RESPONSE Iconic partnerships (IMG, AEG, PSG, Visa and BNP Paribas, Grab, Accor Arena) and premium statuses (Diamond and Limitless) for experiences that “money can’t buy”; an ecosystem to facilitate access to local activities, especially those that convey genuine authenticity or even a sense of satisfaction (through a community-oriented or environmental dimension); a redesigned loyalty program to increase the sense of belonging and more fully reward brand loyalty.
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MORE fluidity, flexibility and safety
ACCOR’S RESPONSE Continuous improvement of the security and robustness of booking systems and the browsing experience on the distribution website, especially for mobile applications (in all.accor.com); capacity to switch seamlessly between digital and physical experiences, with reception counters replaced by check-in on mobile tools. Commercial flexibility for guests, rates, postponements and cancellations. Ease of conversion for partner hotel owners looking to switch brands. Certification of hotels that comply with the ‘ALLSAFE’ enhanced health and safety protocol and introduction of medical assistance to protect guests during their stays.
MORE personalization
ACCOR’S RESPONSE Both technological, harnessing the power of big data and AI to better grasp and anticipate guests’ needs (ACDC)*, for instance, and at the same time profoundly human, transforming our management methods to encourage individual initiative aimed at providing guests with a tailor-made experience throughout their stay (Heartist®program).
In an asset-light model where brands are essential assets, it is vital to invest in them to unlock their full potential. This increases brand equity, grows hotel RevPAR by heightening brand appeal and facilitates the development of the network by offering compelling brands to owners.
ACCOR’S RESPONSE An extended brand portfolio; in-depth work on the brands’ positioning and value propositions, especially in their sustainability dimension to match the growing aspiration of consumers for purpose-driven brands contributing to society. In 2019, a portion of the marketing spend was focused on boosting the international reputation, visibility, appeal and impact of the brands—especially the most value-accretive—through targeted advertising campaigns and partnerships with front-ranking players worldwide. 90% of the Group’s marketing spend goes to seven global brands (Raffles, Fairmont, Sofitel, Pullman, Mercure, Novotel and Ibis).
* Accor Customer Digital Card.
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Accor, a Group committed to its people and its communities
GROUP COMMITMENT
Accor’s ethical commitment in favor of communities Beyond the ALL Heartist Fund created during the pandemic, the Group’s commitment to solidarity is supported by the Accor Heartist Solidarity Fund, formerly known as Accor Solidarity. In 2021, the Group’s annual donation was maintained at €1 million. In parallel, more and more stakeholders are rallying to the fund raising effort in collecting donations. In an effort to engage with employees and guests, Accor Heartist Solidarity has diversified and digitalized its collection methods without changing its scope of operations, which has proven effective for more than 10 years. Accor Solidarity aims to fight against the economic and social exclusion of disadvantaged people through vocational activities, by supporting projects together with local organizations and NGOs. After
more than 10 years of commitment and contact with the associations at the heart of the projects, the endowment fund has developed real expertise in these areas of action that it now wants to reinforce and complement. The fund also acts in emergency situations and provides assistance to local populations to help deal with the immediate and long-term consequences of natural disasters. Since 2018, the fund has extended its support to projects that respond to other types of humanitarian crises, especially in major cities. Whether they concern extreme poverty, isolation or the conditions for supporting the most disadvantaged populations, they still must deal with the same problems as humanitarian emergencies, which generate economic and social exclusion.
In 2021, despite the health crisis, teams were still extremely active, helping nearly 15,000 people across the globe.
Promoting diversity and inclusion is one of the Group’s key drivers of performance, innovation, and ensuring job satisfaction. This has been the Group’s long-standing and proactive policy and one of the founding principles of managerial ethics to combat discrimination and promote equal opportunities across the organization. We have been implementing our diversity and inclusion approach since it was created back in 2008. Since then, numerous project have been set up to support and steer these commitments with our head office, owned, leased and managed hotel employees.
The commitment of its people has allowed Accor to deliver robust growth over the last 50 years, becoming a global leader in the hotel industry. Accor’s 232,000 employees are central to its daily operations in all their diversity. Hospitality is synonymous with a human touch, and that is why the Group’s people are its most valuable asset.
In terms of diversity and inclusion, the Group’s initiative covers four challenges:
• s o c i a l re s p o n s i b i l i ty : A cco r, a s a responsible employer, has a duty to re f l e c t t h e d i ve r s i ty o f t h e communities in which it operates; thus, for example (as presented on page 29), in Australia, Accor works to promote the inclusion of Aborigines with a specific inclusion and training program in Group hotels.
• employer appeal: Accor is proud of its differences and promotes a positive image externally;
• business performance: making diversity a priority helps Accor design customized solutions to meet guest expectations; For example, in 2021, Accor signed up to the Valuable 500 commitment, to reach two goals: train and raise awareness
of Excom members and increase representation of employees and guests with disabilities in the Group’s communication campaigns;
• operating performance: inclusiveness and social cohesion are important factors for well-being in the workplace and to secure the commitment of all employees.
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Financial performance and ratings
ACCOR’S FINANCIAL AND NON-FINANCIAL RATINGS:
S&P: BB+ with negative outlook Fitch: BB+ with stable outlook
CDP Carbon rating: A- CDP Water rating: B CDP Supplier engagement rating: B ISS ESG rating: Prime Ecovadis rating: Gold level Sustainalytics rating: ESG Risk Rating: 18.3, Low risk Gaïa rating: 75/100 MSCI rating: A Vigeo rating: 67/100
HOTELSERVICES BUSINESS VOLUME
(in €bn)
REVENUE (in €m)
EBITDA (in €m)
NET PROFIT (LOSS), GROUP SHARE
(in €m)
20212020 20212020 20212020 20212020
12 9
1,621
22
2,204
-391
85
-1,988
RECURRING FREE CASH FLOW
(in €m)
NET DEBT (in €m) Cost of debt (%)
AVERAGE MONTHLY CASH BURN
(in €m)
-727
-246 121.7%
2.2%
1,346
1,844
20212020
20212020
20212020
61
20
€7.5bn Stock market capitalization as of December 31, 2021
Accor joins the IMPACT platform and takes part in its launch by publishing its ESG indicators. Accor, CSR champion in its sector for non-financial agencies:
#1 CDP Carbon #1 ISS-Oekom #2 Vigeo #2 Sustainalytics #3 MSCI
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72 ACCOR — 2021 Integrated Report
Governance and risk management_
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A reliable governance to support the strategy
GOVERNANCE
Composition of the Board of Directors
The Company is governed by a Board of Directors composed of twelve members, including two representing employees. Since 2009, the roles of Chairman of the Board and Chief Executive Officer have been combined, enabling the Group to have a greater agility in its governance and management, while also creating a direct relationship between management and shareholders.
The balance of power is ensured thanks notably to the presence of a Senior Independent Director. The diversity of the Board of Directors and in particular the Directors’ complementary technical knowledge and expertise (in finance, marketing, digital, luxury or indeed hospitality) enable the Board to properly identify and understand the challenges facing the Group's activities and facilitate their development.
Independent
Not-independent
Director representing employees.
Vice-Chair and Senior Independent Director
AUDIT, COMPLIANCE & RISKS COMMITTEE
COMMITMENTS COMMITTEE
APPOINTMENTS, COMPENSATION AND CSR COMMITTEE
INTERNATIONAL STRATEGY COMMITTEE
Directors chairing a Committee
MEMBERSHIP OF THE BOARD OF DIRECTORS AT DECEMBER 31, 2021
Sarmad Zok End of term – 2022 AGM
Isabelle Simon End of term – 2022 AGM
Nicolas Sarkozy End of term – 2022 AGM
Iris Knobloch End of term – 2023 AGM
Qionger Jiang End of term – 2022 AGM
Sébastien Bazin End of term – 2023 AGM
Iliane Dumas End of term - 05/02/2023
Sophie Gasperment End of term – 2022 AGM
Christine Serre End of term - 01/27/2024
Sheikh Nawaf Bin Jassim Bin Jabor Al-Thani, End of term – 2022 AGM
Aziz Aluthman Fakhroo End of term – 2022 AGM
Bruno Pavlovsky End of term – 2023 AGM
54 Average age
60% Independence of the Board
40% Women directors
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Work of the Board and its Committees in 2021
Work of the Board of Directors and its Committees in 2021 All information relating to the Company’s governance is provided in the corporate governance report in section 4 of the 2021 Universal Registration Document.
Board Committees
5 meetings • Review and monitoring of various
proposed acquisitions and disposals
• Review of the planned Sustainability- Linked Bond issue
• Review of the investment made by Accor as a sponsor of the SPAC Accor Acquisition Company
Commitments
4 meetings • Interim and full-year accounts• Group financial results• Review of the Statutory Auditors’ fees •Monitoring of the works of the ALL Heartist Fund • Review of the cybersecurity and personal data
protection measures in place
• Monitoring of the Group’s compliance program
Audit, Compliance & Risks
1 meetings • Review of recent international issues
(particularly monitoring the consequences of the health crisis) and their impact the on Group’s operations
International Strategy
5 meetings • Review of compensation• Review of the succession process • Review of the independence of directors• Review of the gender diversity policy
and monitoring of the action plan
• Review of CSR strategy and initiatives• External assessment procedure regarding the operations of the Board
• Review of candidates for the appointment of an independent director
Appointments, Compensation & CSR
Board of Directors
• Monitoring the health crisis and its consequences for the Group
• Monitoring the implementation of the emergency plan and the Reset permanent cost savings plan
• Monitoring of work done by the ALL Heartist Fund
• Issue of a €700m Sustainability-Linked Bond
• Creation of a Special Purpose Acquisition vehicle Accor Acquisition Company of which Accor is the sponsor
• Creation of a lifestyle platform Ennismore
• Review of the composition of the Board and proposal to appoint a new independent director
• 2020 parent company and consolidated financial statements and 2021 interim financial statements
• Review of the independence of directors and consideration of potential conflicts of interest
• Approval of an interim plan • Notice of the Annual
Shareholders’ Meeting
11 meetings in 2021
93% attendance rate
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The Executive Committee is composed of 19 members representing all businesses and regions in which the Group operates and helps manage and anticipate major challenges. It implements the strategic objectives approved by the Board of Directors, reviews key matters and tracks the operating performance in the light of the targets set.
COMPOSITION OF THE EXECUTIVE COMMITTEE AT THE DATE OF THIS UNIVERSAL REGISTRATION DOCUMENT
Sébastien Bazin Chairman and Chief Executive Off icer
Floor BLEEKER Chief Technology Off icer
Brune POIRSON Chief Sustainability Off icer
Patrick MENDES Group Chief Commercial Off icer in charge of Sales, Marketing, Distribution and Loyalty (SMDL)
Jean-Jacques Morin Deputy CEO and Chief Financial Off icer
Steven DAINES Chief Talent & Culture Off icer
Alix BOULNOIS CEO Digital Factory
Fabrice CARRÉ Chief Strategy Off icer
Agnès ROQUEFORT Chief Development Off icer
Heather McCRORY CEO North & Central America
Maud BAILLY CEO South Europe
Gary ROSEN CEO Greater China
Mark Willis CEO Middle East & Af rica
Sarah DERRY CEO Pacif ic
Thomas DUBAERE CEO Latin America
Stephen ALDEN CEO Raffles & Orient Express
Duncan O’ROURKE CEO North Europe
Garth SIMMONS CEO South East Asia
Gaurav BHUSHAN CEO Lifestyle & Entertainment Accor and Co-CEO Ennismore
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General compensation policy Accor has established a global compensation policy that is adapted to each country’s specific practices.
It is based on five principles:
• take into consideration the performance and potential of each employee;
• offer competitive compensation in relation with the relevant market and country;
• ensure that employee compensation is determined fairly;
• encourage employee savings and stock ownership;
• strengthen employee healthcare coverage and other benefits.
More information on talent compensation is presented in section 3 of the 2021 Universal Registration Document.
Compensation policy for the Chairman and CEO The Company’s compensation policy for its Chairman and CEO is determined by the Board of Directors, acting on the recommendation of the Appointments, Compensation & CSR Committee. To this extent, the Board constantly ensures that it complies with the principles of comprehensiveness, consistency with the company ’s other executives and employees’ compensation policy, comparability, motivation, comprehensibility of the rules and measurement, while ensuring that a balance is maintained between the various compensation elements. In making its recommendations, the Appointments, Compensation & CSR Committee, uses compensation benchmarks conducted by external consultants of the practices of companies of comparable size and international hotel Groups. An additional aim of the analysis is to ensure that the Company’s compensation policy for its executive officer complies with the AFEP/MEDEF Corporate Governance Code. The compensation policy of the Chairman and Chief Executive Officer for 2022 along with the items of compensation paid or awarded to him in respect of fiscal 2021 will be subject to the approval of shareholders at the Company’s 2022 Annual Shareholders’ Meeting and are presented in section 4 of this Universal Registration Document.
Compensation of employees and the Chief Executive Officer
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Summary of the overall structure of the Chairman and Chief Executive Officer’s compensation package proposed for 2022
Components Criteria and objectives Amount/Weighting
ANNUAL FIXED COMPENSATION
Determined by the Board of Directors based on the recommendation of the Appointments, Compensation & CSR Committee, taking into account: • Experience; • Responsibilities; • Market practices.
€950,000 Unchanged since January 1, 2016 1
ANNUAL VARIABLE COMPENSATION
Annual variable compensation that varies depending on performance in relation to the following objectives:
The annual variable compensation will represent between 0% and 150% of a reference amount set at €1,250,000, representing between 0% and 197% of his annual fixed compensation
Quantitative objectives: (80% of annual variable compensation):
• financial: actual versus budgeted consolidated EBITDA for 2022, actual versus budgeted f ree cash flow (excluding disposals and acquisitions) after change in operating working capital, achievement of RESET plan savings relative to 2022 budget
• non-financial: organic growth in number of rooms (net of transfers from one brand to another) in line with 2022 budget, CSR criteria: percentage of managed and franchised hotels having eliminated single use plastic (except for drinking water bottles)in the guest experience, percentage of women on Management Committees wordlwide and percentage of hotels with a carbon emissions measurement tool in place
Each qualitative objective, depending on the degree to which it is met, may trigger the payment of between 0% and 160% of the share of variable compensation it represents
Qualitative objectives (20% of annual variable compensation):
• agility and operating adaptation of the business model and talent development
This objective may trigger the payment of between 0% and 120% of the share of variable compensation it represents
LONG-TERM COMPONENTS
Performance share subject to the achievement of performance conditions set by the Board of Directors and conditional to continued presence in the Group
The grants represent a maximum of 250% of annual fixed compensation, determined by the Board of Directors
1 In view of the health crisis and the short-time working measures used in fiscal 2020, the Board of Directors had agreed to the proposal by the Chairman and Chief Executive Officer to reduce his fixed compensation by 25% f rom April 1 to December 31, 2020.
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A structured approach to comprehensive risk management
The approach is based on risk maps, specific to one or several risks (see section 2.2.1 “Risk management”), carried out on the basis of a shared methodology that can nevertheless be adapted to the specific nature of each risk category. Operational and functional units design, implement and run prevention and protection programs in response to risks identified.
Since the end of 2020, risk governance has been based on a new, broader model of consultation and decision-making through a Group Risk Committee that meets quarterly and reports to the Executive Committee.
Material risks The material risks resulting f rom the map of the Group’s major risks are presented below in descending order of importance. The description of these risks and the associated mitigation measures are described in section 2.2.2.
• Deterioration in the geopolitical, health or economic environment
• Climate Risk [SNFP] [TCFD] • Malicious harm to the integrity
of digital personal data [SNFP]
• Unavailability of digital operating data
• Talent attraction and retention risk [SNPF] • Integration of acquisitions • Non-compliance with standards,
laws and regulations [SNFP]
Approach THE GROUP’S RISK MANAGEMENT APPROACH AIMS TO
• identify, assess and reduce risks that could prevent the Group f rom delivering its targets and implementing its strategy, even partially;
• identify, assess and reduce risks generated by the Group’s business with social or environmental consequences and with an indirect impact on the Group’s reputation;
• protect the Group’s employees, data and brands as well as its customer and partner portfolios while implementing the strategy.
RISK MAPPING
Identification/ Evaluation Risk universe Evaluation scales Risk matrix
ANTICIPATORY ACTIONS
REACTIVE ACTIONS
Reaction Activation of crisis management and communication system Activation of business continuity plans
Prevention CSR Compliance Safety and Security Ethics Information system security etc.
Protection Design of crisis management and communication system Design of business continuity plans Internal control Governance Risk transfer policy
EVENT
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ACCOR, Société Anonyme. Share capital: €785,568,804 Headquarters: 82, rue Henri-Farman – 92130 Issy-les-Moulineaux, France
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