Despite the global health crisis, investing in hospitality remains a good long-term strategy. Thinking about investing in Accor? Take a look at our article.
Accor is one of the leaders of the hotel industry. The international group, which operates in a wide range of industry-related business lines, is popular with investors. Read on for more information about the company and its stock.
In 1967, Gérard Pélisson and Paul Dubrule founded the Société d'investissements et d'exploitation hôteliers (SIEH), which quickly became a renowned hotel chain.
Throughout the 1970's, the group expanded to include several companies such as Ibis, Courtepaille, Mercure, Sofitel and Jacques Borel International. The name Accor was adopted in 1983 following these acquisitions.
Since then, the group has undergone several restructurings, refocusing, expansion into new markets, company buyouts and the sale of subsidiaries. The Accor group has become a hotel group that franchises hotels, resorts and vacation homes, alongside those it manages and owns.
Accor is the leader in the European hotel market and is ranked sixth worldwide.
Accor’s business segments can be grouped into three main areas: hotel operation under management contract, management of owned and leased hotels and other services and more recent activities, such as the rental of luxury private residences, concierge services and digital hotel services.
The company operates under several brands in all areas of hotel services. The Accor group possesses 39 hotel brands, with a total capacity of more than 753,000 rooms in 5,139 hotels.
These brands include:
The group is present in more than 100 countries around the world, with 280,000 employees on five continents.
Accor’s main shareholders include:
Accor’s multiple partnerships have enabled the company to expand globally. Companies with whom it has partnership agreements include Rixos Hotels, TravelCar, Dubai Emaar Properties, SNCF, Mantis Group, Katara Hospitality, FRHI Hotel & Resorts, Banyan Tree, SBE Entertainment Group, Mantra Group, 25hours Hotels, Ennismore Company, Visa and BNP Paribas.
Direct competitors of Accor include the multinational hotel groups Hyatt Hotels Corporation, the Hilton group, Intercontinental Hotels Group or IHG, Wyndham Destinations, and the Mariott International group. Online travel agencies such as AirBNB should also be followed closely.
Accor's revenue suffered considerably from the Covid-19 global health crisis in 2020. The group posted 2020 revenue of €1,621 billion after record figures of €4,049 billion in 2019. Accord reports a net loss group share of €1,988 billion for 2020.
Accor's revenues break down geographically as follows:
Accord shares are included in the CAC 40 benchmark index of the largest French companies. It is listed on the Euronext Paris stock exchange, in compartment A, in the Hotel sector. The market capitalization of Accor shares is more than 8,667 billion euros. The number of shares outstanding is 261,382,728. The share is eligible for PEA and SRD.
The global health crisis is having an impact on the group's financial results and thus on Accor's share prices. The group is actively seeking to implement related strategies. The effects of these strategies, but also the recovery plans for the resumption of activities, are to be followed closely.
Covid-19 management measures in various world nations, such as lockdowns, vaccination programs, or the opening of borders, can influence stock prices.
As the crisis is affecting the entire industry, it is important to follow the restructuring and developments of the group's competitors in the race to regain market share.
The performance of new activities such as the digital concierge services Fastbooking or OneFineStay influences the share price.
The foreign exchange market also influences Accor share prices, as it is an international group.