Accor Case Study

ACCOR Case Study

VERNIMMEN’S CASE STUDIES

Accor case study

Written by Pascal Quiry

Vernimmen’s case studies:

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ACCOR Case Study

Corporate Profile (source : Accor annual report)

Accor, the European leader and a major global group in hotels, as well as the global leader in services to

corporate clients and public institutions, operates in nearly 100 countries with 150,000 employees. It offers

its clients over 40 years of expertise in two core businesses:

Hotels, with the Sofitel, Pullman, MGallery, Novotel, Mercure, Suitehotel, Ibis, All seasons, Etap Hotel,

Formule 1 and Motel 6 brands, representing more than 4,100 hotels and nearly 500,000 rooms in 90

countries, as well as strategically related activities, such as Thalassa Sea & Spa, Lenôtre and CWL,

Services, with solutions that help to improve the performance of organizations by delivering employee

benefits, public benefits and prepaid services to 33 million users in 40 countries.

End of August 2009, Accor announced that a demerger study between:

its Hotels division,

its Services division

was under way. Then it announced that this project would be submitted to the vote of shareholders during

an extraordinary general meeting on June 2010, 29.

If approved, each Accor shareholder would receive for each Accor share owned a share in the Service

division. Then Accor would become focused on hotels.

© Vernimmen Case Studies 2010

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ACCOR Case Study

Questions

1. What are the main characteristics of the Hotel and Service divisions in terms of size, growth, margins,

working capital, returns, financial structure, value and risks?

2. Would a standard financial analysis of the Accor Group’s consolidated accounts, as a whole, give you a

detailed view of the performance of the group? Why? What then should you do to obtain a detailed

view?

3. What are the operational synergies...