AccorHotels, a multinational hospitality company, is aiming to double its EBITDA (earnings before interest, tax, depreciation and amortization) between 2017 and 2022, to reach €1.2 billion ($1.36 billion), its chairman and CEO said.

“AccorHotels has gone through a major transformation over the last few years. This was evidenced by numerous acquisitions of brands and new ancillary business activities, the strengthening of our digital platforms, and the shift to an asset-light model with the sale of a majority stake in AccorInvest,” explained Sebastien Bazin.

“These major steps behind us, we are now focused on executing on our strategy to unleash the Group’s full potential. Our targets are ambitious yet achievable. AccorHotels is more agile, more profitable, and more global, with a well-balanced brand portfolio.

“These assets are unique in the industry. Combined with a rigorous management, this will enable the Group’s to create sustainable value for our shareholders, our clients and our employees,” he added.

Bazin explained that the Group’s target to double its EBITDA by 2022 will be driven by:

•    The integration and ramp-up of recent acquisitions
•    Solid revenue growth, reflecting both sound business levels in the Group’s key markets and the continued increase in development, supported by the upscaling of its brand portfolio
•    Operating margin improvement, thanks to strict control of central costs
•    Operating performance enhancement, combined with stable CAPEX will lead to sharp increase in recurring cash-flows, and hence the Group’s dividend per share.

In the context of its Capital Market Day to be held in Paris today (November 27), AccorHotels reaffirmed the key components of its strategy and presents its midterm targets for value creation.

As the Group’s transformation into an asset-light model comes to completion, AccorHotels now builds on many strengths:

•    The richest portfolio of iconic brands in the industry, covering all segments & niches

•    Leading positions in the highest-potential markets, with number one position in Europe, Asia-Pacific, Middle-East & Africa and Latin America

•    Accelerating development pattern, with an increasing share of upscale and luxury hotels, delivering a continuous 5 per cent net system addition per annum, among the industry highest

•    State-of-the-art distribution tools, with emphasis on personalization, usage and loyalty.

The execution of this strategy will be fostered by two initiatives:

•    The public tender offer for 47 per cent of the share capital of the Polish company Orbis that AccorHotels does not own today, with a view to replicate of the active asset management strategy implemented by AccorHotels for several years

•    The alignment of the Group’s support functions with its new economic model, notably in Europe, in order to better serve partners and clients, while optimizing central costs, expected to remain stable over the midterm. – TradeArabia News Service