AccorHotels reaffirms its ambitions and targets the doubling of its EBITDA by 2022
In the context of its Capital Market Day to be held in Paris today, AccorHotels reaffirms the key components of its strategy and presents its midterm targets for value creation.
As the Groups transformation into an asset-light model comes to completion, AccorHotels now builds on many strengths:
- The richest portfolio of iconic brands in the industry, covering all segments & niches,
- Leading positions in the highest-potential markets, with number one position in Europe, Asia-Pacific, Middle-East & Africa and Latin America,
- Accelerating development pattern, with an increasing share of upscale and luxury hotels, delivering a continuous 5% net system addition per annum, among the industry highest.
- State-of-the-art distribution tools, with emphasis on personalization, usage and loyalty.
The execution of this strategy will be fostered by two initiatives:
- The public tender offer for 47% of the share Capital of the Polish company Orbis that AccorHotels does not own today, with a view to replicate of the active asset management strategy implemented by AccorHotels for several years;
- The alignment of the Groups support functions with its new economic model, notably in Europe, in order to better serve partners and clients, while optimizing central costs, expected to remain stable over the midterm.
Sebastien Bazin, Chairman and CEO of AccorHotels said: AccorHotels has gone through a major transformation over the last few years. This was evidenced by numerous acquisitions of brands and new ancillary business activities, the strengthening of our digital platforms, and the shift to an asset-light model with the sale of a majority stake in AccorInvest. These major steps behind us, we are now focused on executing on our strategy to unleash the Groups full potential. Our targets are ambitious yet achievable. AccorHotels is more agile, more profitable, and more global, with a well-balanced brand portfolio. These assets are unique in the industry. Combined with a rigorous management, this will enable the Groups to create sustainable value for our shareholders, our clients and our employees.
Based on the above, AccorHotels targets the doubling of its EBITDA between 2017 and 2022, to reach 1.2bn, driven by:
- The integration and ramp-up of recent acquisitions,
- Solid revenue growth, reflecting both sound business levels in the Groups key markets and the continued increase in development, supported by the upscaling of its brand portfolio,
- Operating margin improvement, thanks to strict control of central costs.
Operating performance enhancement, combined with stable CAPEX will lead to sharp increase in recurring cash-flows, and hence the Groups dividend per share.
AccorHotels is a world-leading travel & lifestyle group and digital innovator offering unique experiences in more than 4,000 hotels, resorts and residences, as well as in over 2,500 of the finest private homes around the globe. Benefiting from dual expertise as an investor and operator through its HotelServices and HotelInvest divisions, AccorHotels operates in 95 countries. Its portfolio comprises internationally acclaimed luxury brands including Raffles, Fairmont, Sofitel Legend, SO Sofitel, Sofitel, onefinestay, MGallery by Sofitel, Pullman and Swissôtel; as well as the popular midscale and boutique brands of Novotel, Mercure, Mama Shelter and Adagio; the in-demand economy brands including ibis, ibis Styles, ibis budget and the regional brands Grand Mercure, The Sebel and hotelF1. With an unmatched collection of brands and a rich history spanning close to five decades, AccorHotels, along with its global team of more than 240,000 dedicated women and men, has a purposeful and heartfelt mission: to make every guest Feel Welcome. Guests enjoy access to one of the world's most rewarding hotel loyalty programs - Le Club AccorHotels. AccorHotels is active in its local communities and committed to sustainable development and solidarity through PLANET 21, a comprehensive program that brings together employees, guests and partners to drive sustainable growth. Accor SA is publicly listed with shares trading on the Euronext Paris exchange (ISIN code: FR0000120404) and the OTC marketplace (Code: ACRFY) in the United States.