1. The ACCOR Group

2. Our Team
Besset Sophie
Darras Marianne
Menut Agnès
de Lamaze Hortense

3. ACCOR Group presentation
Historical data
Business
The hotel activity
Products
Company Values
Implantation
strategy
Constraints
Evolution
perspectives
Advices for
foreign
implantation

4. The ACCOR Group Historical Data
SIEH founded in France in 1967 ; first Novotel in Lille.
First implantation in Brasil in 1976
SIEH became ACCOR Group in 1983
Partnership program (SNCF, Air France) starts in 1998
Wide program of SOFITEL opening in 2002
Historique
1967 Paul DUBRULE et Gérard PELISSON fondent la SIEH (Société
d’Investissements et d’Exploitation d’Hôteliers).
Premier hôtel Novotel à Lille.
1974 Ouverture du premier Ibis à Bordeaux.
1975 Rachat de Mercure.
1976 Mise en place d’une structure au Brésil.
1980 Reprise de Sofitel (43 hôtels et 2 centres de thalassothérapie).
1981 Introduction en bourse de SIEH.
1982 Prise de contrôle de Jacques Borel International (chef de file européen
de la restauration collective et leader d’émission de Ticket Restaurant.
1983 Le Groupe Novotel SIEH – Jacques Borel International devient Accor.
1985 Création de Formule 1 : nouveau concept d’hôtellerie.
Acquisition de Lenôtre (restaurant gastronomique).
Création de l’Académie Accor : 1ère université d’entreprise.
1989 Association avec Lucien Barrière.
1990 Acquisition de la chaîne Motel 6 aux Etats-Unis.
1991 OPA sur la Compagnie Internationale des Wagons-lits et du
Tourisme.
1993 Création de Accor Asie Pacifique Corporation.
Lancement du label Coralia.
1994 Partenariat entre Carlson et Wagonlit Travel.
La stratégie d’internationalisation du groupe Accor DESS CAAE
1995 Lancement d’un programme de formation dans le domaine de la
protection de l’environnement.
1996 Avec 144 hôtels dans 16 pays de la zone Asie-Pacifique et 56 projets
en chantier, Accor devient numéro 1 de l’hôtellerie de cette région.
1997 Accor se dote d’une nouvelle structure de direction : Paul DUBRULE
et Gérard PELISSON deviennent Présidents du Conseil de
Surveillance ; Jean-Marc ESPALIOUX est nommé Président du
Directoire.
Lancement du projet « Accor 2000 ».
1998 Développement de la politique de partenariat : Air France, SNCF…
nouveaux hôtels soit une croissance de 22 % du parc, due
notamment à l’acquisition de Redroof Inns aux Etats-Unis.
2000 Partenaire des Jeux Olympiques de Sydney.
Ouverture de 254 nouveaux hôtels dont 12 Sofitel.
2001 Lancement de Suitehôtel.
2002 Plan exceptionnel d’ouvertures de Sofitel en 2002.

5. The ACCOR Group BUSINESS
CA : 6828 Millions Euros in 2003
Employees world wide :
158 023 persons
Accomodation :
12 095 persons
Services :
4039 persons
Other activities :
32 000 persons
Foreign Implantation for Services too, but the main constraint for services is legal more than cultural.
What are the Services : Restaurants tickets…
Services : Performances improvment :accentiv
Health care development  : childcare vouchers
Others : Accor casinos
Restauration : restaurants tickets, Lenôtre
Govoyage
Trains restauration services
Carlson wagonlit voyages

6. The Hotel Activity CA : 4827 Millions of euros 4th mondial group all
Management systems included
65% Businessmen
35% Leisure
Who are the company's clients?
65%=> Business men
35%=> Leisure
The market is divided in 50% for the leisure and 50% for business, which could represent a leverage element for the business of ACCOR, as well as the utilization of the internet.
What are their expectations?
First class hotels : Wealthy individuals clients and companies
Foreign travellers =>middle class
Local travellers : economic class
How will a French presence help or hurt the company's ability to satisfy client demands?
French presence help in the hotel business:
Quality, hospitality, gastronomy, decorating = French “Art de vivre”

7. Products First class : Sofitel Middle class : Novotel, Mercure
Economic class : Ibis, Redroof Inns, Etap hôtel,
Formule 1, Motel 6, Studio 6.
First class 8%
Middle class 36%
Economic class 56%
Accor owns three main type of products :
First class hostels, which are mainly visited by wealthy client and businessmen
Middle and economic class : for tourist and local travellers.
The economic class is the most profitable, as the running cost are lower and it touches the leisure sector where people spend more money.
Moreover the return on investment are quicker for the middle and economic class hostel than for the first class hostels.

8. Company values 2 MAIN LINES Respect humans rights
Facilitate local economy
The core values of ACCOR are :
trust
responsibility
professionalism
transparency
Innovation
“facilitate professional evolution”
For ACCOR the respect of the Human rights is primordial.
In Birmania Accor had to withdraw hotels because of non respect of the human rights

9. Competitors First class : Intercontinental, MARIOTT, Hilton
Middle and economic classes : Local competitors. Examples : Spain : Sol Melia France : Envergure, Campanile, Concord,
Usually, the competitors tend to follow Accor in their new implantations
For the first class hotels, the competitors are mondial group such as Intercontinental, MARIOTT, Hilton, and for the middle and economic classes, the competitors are mainly locals.
For some countries, the competitors represent a real barrier to the entry of the market. For example, in Great Britain, the competitors have so much invested the market that it is nearly impossible for the ACCOR Group to enter the market.
And in USA, it’s impossible to invest the market with middle class hotels, the market is covered by american companies.

10. Implantation strategy (1)
Objectives: being present everywhere in the world
and long term development
Country selection criteria
Economic and middle class accommodations
Leisure flows (tourists and locals)
Need of developed Communication and Infrastructures
First class accommodation
International flows, Airway communication well developed, main international towns…
But in China, for the building of a new first class hotel, there wasn’t any communications and infrastructure, but in one year chinese had built the road, the telecomunication, and the hotel, because of the cheap employment.
The selection of a country to implant a product could depend on variaus factors:
Ex: No implantation of Etap hotel in place where Accor can’t secure employees and clients (During the night, there is no employees in the hotel)

11. Implantation strategy (2)
Products adaptation
Once the commercial positioning is defined,
the concept of the product remains the same
& is applied in every country
 IBIS example
The adaptations concern decoration, food, architecture,
room size, bathroom…
The concept is the same Example of Ibis : : it is a 24-hour-service-hotel, there is no mini-bar in the rooms, it is sold directly to the customer.

12. Implantation strategy (3)
Financial strategy
The investment strategy has to
meet the rentability objectives
of ACCOR
Management and franchised dealer : 37 %
Rental : 42 %
Property : 21 %
The franchised system is mainly used in France as the ACCOR group is sure it can trust the owner of the Franchise.
When a country presents a high country risk, ACCOR prefers using the maagement system in order to limit their investment.
This choice allows them to stay in the country even if the risk becomes higher, as they don’t own the porperty. On the other hands, Americans who invest in the new countires, escape the country as soon as the risk increase to avoid loosing all their investment.
Usually local governments are quite grateful of this attitude, and offer the ACCOR group greater development possibilities thant to the other groups.
Franchised dealers are owners of the hostel and use the brand of ACCOR. The manager of the hostel can be different of the owner. ACCOR gets a pourcentage of the sales.
In a case of a contract management, ACCOR is not the owner of the hostel but manage it and gets an insentive part of the sales. ACCOR does’nt own the walls.
ACCOR can as a strategy acquire other hotel societies and then increase their brands number. This is the Acquisition strategy.
More over a new implantation won’t be made if the rentability criteria are not met. For example, a Sofitel is profitable if the ration rent/sales is lower than 30% of the sales. On an other hand, an economy class hotel will be profitable if the ration rent/sales is lower than 20%.

13. Implantation strategy (4)
Ressources management
First Implantation  French Manager
In the long term, the aim is to develop as much as possible jobs
in the host country (Except for Sofitel, French Manager automatically)
70% of the employees sent on formation courses per annum
Evolution and instillation of Accor values
Values applicable to all countries
by a local manager who knows the local culture.
Collaboration between the Accor Group and the local manager
is essential for the successful implantation of the group in the country.
Someone who knows perfectly well the Accor culture have to be the first manager of a new hotel. Then Local managers are employed. This change is due to the desire of integrate local employees in the group and avoid expensive expatriate.
Accor motive their emplyees with great career opportunities.

14. Constraints
Property rights specifics to each country and sometimes difficult to understand Legal hences,
humans rights,
social laws
Infrastructures constrains,
taxes law
Culture
Competitors presence (GB)
Losses of market / constraints
Yes: Birmania project lost
Germany, Spain : project delayed
Example:
In Germany, the project was delayed because of legal problem. The law did not allowed the toilets to be outside of the bedroom. Or the economy ACCOR hotel were conceived without enough space in the room to include the toilets.Because ACCOR did not want to change the concept of their hotels, they waited for the law to change in Germany before exporting their economy class hotels.

15. Evolution perspectives
Global brand not well known  Associate the name
Of Accor to the different products (Sofitel…)
Implantation in priority in Europe (GB, Spain, Italy),
and China
75 international main cities to be, and only 55 where
ACCOR possesses hotels. (San Francico, Boston, Beijin)
Develop Internet market
The market is divided in 50% for the leisure and 50% for business, which could represent a leverage element for the business of ACCOR, as they only have 35% of leisure in their business.
Internet as a way of booking rooms is as well a leverage factor.
In fact, traveling agency were barriers for most people who did not dare booking their holidays through them, considering that it was a way reserved to wealthy people.

16. for a foreign implantation
Advices
for a foreign implantation
Study of the economical context, market potential
Understanding of the legal frame
Management and product adaptation to the local culture
Tax law
Specific to France:
Heavy tax system
Social management (35 hours)

17. We Thank Manager 1: RAGOZIN Serges, , Tour Montparnasse,
Manager 2: HERVE Bertrand, telephone interview

18. Bibliography
Stratégie d’internationalisation
Site