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Accor : “What we promise is getting delivered, this is really for us an element of pride”

May 15, 2024
in General
Accor : “What we promise is getting delivered, this is really for us an element of pride”
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In a year of unprecedented success, Accor has not only achieved a historic EBITDA of over 1 billion, marking a considerable jump from the 800 million in 2019 but also solidified the effectiveness of our business model. This achievement is a testament to the resilience and adaptability of our organization, especially when considering the backdrop of the past financial challenges. Jean-Jacques Morin discusses the critical elements that contributed to this outcome and how the company’s strategic reorganization has delivered on promises and expectations.

Financial Highlights and Cash Conversion

The financial robustness is evident in the top-line growth, with a remarkable 23% increase in revenue per available room. Moreover, a key financial indicator – the cash conversion ratio – stood at 59%, signifying not only robust EBITDA performance but also efficient conversion into cash, allowing for significant returns to shareholders.

Strategic Priorities and Operational Efficiency

When discussing strategic priorities, Jean-Jacques Morin emphasizes the importance of operational efficiency. Post-pandemic learning has led to a cost variation strategy involving a shift of the company’s ecosystem to the cloud. This move is not merely for cost-cutting but also enhances quality, security, and operational performance across the board.

Empowering Brands and Rethinking Standards

Investment in brand equity has been a pivotal part of the company’s strategy. By revising and reducing brand standards, for instance, a 70% reduction for Novotel, the company has streamlined operations, allowing for a focus on what truly matters and enhancing brand performance. Jean-Jacques Morin underscores the commitment to maintaining a high-quality network, with rigorous decisions being made to uphold brand integrity.

Future Focus: Upcoming Initiatives for 2024

Looking ahead, Accor plans to unveil further initiatives for brands like ibis, Novotel, and Pullman in 2024, information yet to come that will delve into these developments.

A People-Centered Organisation and Defense Against Digital Disruption

Jean-Jacques Morin firmly believes that the company’s success is rooted in its people-focused approach. Amidst a landscape prone to digital disruption, the best defense lies in the strength of the company’s team. Efforts to foster diversity and inclusion are highlighted, with a notable increase in the representation of women in management roles, which now stands at 42% and growing.

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Accor

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