Through 2012, the company will focus on deleveraging and cash flow. Longer term in 2013 and beyond, Accor will shift focus on growth through asset light development and consolidation of corporate leadership.
Accor had 814 hotels under ownership structure at year-end 2009. During the deleveraging phase of 2010-2013, Accor expects to dispose of 450 hotels for cash proceeds of €1.6 billion (US$1.97 billion) for an adjusted net debt impact of €2 billion (US$2.5 billion). In April, the company had secured more than half of the 2010 program with a €450-million (US$552.6 million) target.
Accor expects to invest about €200 million (US$ 245.6 million) in development with 35,000 to 40,000 new room openings per year, with a focus on management and franchising. The Etap and Ibis brands will be the focus in Europe, according to the company’s 19 May Investor Day presentation.
The service-providing sector saw the biggest increase with employment jumping by 30,000, followed by the manufacturing industry where employment increased by 16,000. The goods-producing sector’s employment, however, dropped by 17,000.
The employment numbers are taken from payroll data and measure the change in total nonfarm private employment each month.
Topics covered included royalty fees, guest-loyalty programs, and transparency in procurement programs, according to HotelNewsNow.com’s Jeff Higley.
On the topic of royalty fees, Jim Abrahamson, president of the Americas for InterContinental Hotels Group, told moderator Cheryl Casone of Fox Business Network that IHG is not considering lowering its royalty fees.
“We look at the fees as being one component of business, and we did see our income fee drop precipitously,” he said. “We look at the entire menu. And that is all of the cost of affiliation, which we did take specific steps within our cost affiliation of looking at the other fees that are associated with our business. For example, we lowered our performance marketing fees from 13 percent to 10 percent. So we did definitely drop some fees last year.”
The industry is devising a strategy to deal with negative perceptions of the region as a tourism destination following the massive Gulf oil spill, according to U.S. Travel Association president Roger Dow. USTA is working with other industry groups, including the American Hotel & Lodging Association and units of the Commerce Department.
BP earmarked US$70 million for travel marketing in May: US$25 million for Florida, and US$15 million apiece for Alabama, Louisiana and Mississippi.
The European Commission’s overall Economic Sentiment Indicator, or ESI, rose to 98.7 from 98.4, which surprised economists who had been predicting a decrease to 98. The ESI is a combined measure of business and consumer confidence.
Compiled by Patrick Mayock and Shawn A. Turner.