Rooms Hotels

Accor’s Asset-Heavy Strategy Should Reap Long-Term Benefits

Excerpt from Hotel News Now

Dec 05, 2013 11:30 am

Skift Take

At the same time that Accor reversed course and vowed to pursue an asset-heavy ownership strategy, Hilton Worldwide is poised to execute an IPO, with the CEO touting its asset-light strategy, which amounts to taking investment risk with other people’s money. It should be an interesting dynamic to see how the conflicting strategies work out.

— Dennis Schaal

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Accor’s leadership is making a pretty big bet that asset heavy is the way to go. While shareholders today are punishing the company for going against the grain, I believe those investors over the long term will be quite pleased with the change in direction.

Accor, the company that had been a major proponent of “asset right” is getting back to the business of owning and investing. The move is an attempt by newly minted CEO Sebastien Bazin to shake up the organization.

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