Accor has big ambitions in China


At the opening of the meeting held this Friday, the Chairman and CEO of Accor, Sébastien Bazin, said to himself ” very happy to meet the shareholders for the general meeting “. He obviously returned to the rebound of the hotel group last year, after a year 2020 marked by the pandemic. However, the context remains uncertain, particularly with regard to the situation in China and inflation, which is significantly increasing operating costs.

Slower restart for international travel

Sébastien Bazin first detailed the group’s expectations in terms of the resumption of domestic and international travel, which plays a driving role in the group’s growth. In the first place, international travel, of which the leader fears ” that they do not fully return to the pre-pandemic level on business travel “. International tourists should be more numerous than before the pandemic only in two years, due in particular to the restrictions imposed in Asia. Domestic travel should return to 2019 levels more quickly.

The manager also returned to the cash flow difficulties faced by hotels in this inflationary context. Sébastien Bazin specifies, indeed, that the operating costs have increased sharply ” both on wages and on energy costs “.

Strong ambitions in China despite the current uncertainty

The situation in China has raised doubts among shareholders, as health restrictions could burden hotel activity in this part of the world. The CEO, responding to a question, reaffirmed the group’s desire to stay in China for the long term. He clarified that ” the Chinese hotel market, probably the largest in the world, is expected to overtake the American in five to seven years a significant potential. In this sense, the group’s ambition is illustrated with its Jo & Joe brand, which will lead to the construction of more than 100,000 rooms in China within 15 years.

The war in Ukraine raises other concerns. On this subject, the group recalled its commitment in favor of refugees, by welcoming them in the hotels it owns in the region and by launching a hiring plan for Ukrainians who wish to go to another European country.

Predictions confirmed

However, this uncertain environment should not limit the group’s commitments in terms of social and environmental responsibility. Brune Poirson, former Secretary of State and now responsible for sustainable development at Accor, detailed the company’s strategy for green growth. She insisted on the “Planet 2021″ program, which allowed the group ” to initiate an environmental transformation over the last ten years, and to become a leader on these commitments “.

More concretely, Accor plans to eliminate single-use plastic in all its hotels by the end of the year, 80% of its establishments having already done so. Sustainable growth will also involve reducing the group’s carbon impact, which is aiming for neutrality by 2050. The company intends to act in particular on the food front, by accelerating the reduction of waste as well as the share of meat products in menus from 2023. Finally, these efforts cannot go without a social commitment and in particular on gender parity. The group is thus aiming for a target of 30% women on its management committees this year.

The hotel group has finally reaffirmed its forecasts after a very good start to the year. Accor confirms its hotel net growth target of 3.5% in 2022 and the focus has been on increasing revenue per room (business health indicator).

Place for the results of the vote, which are now revealed. The allocation of results for the 2021 financial year, which does not provide for a dividend, was approved by 99.93%. The ex-post compensation of the Chairman and Chief Executive Officer for 2021 was adopted with a lower score of 79.2% of the votes. The ex-ante remuneration, for the following years, was voted by just over 95% of the votes.




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