PARIS—Accor has released its 2018 full-year results along with a new lifestyle loyal program for guests.
Among the result highlights:
- Revenue up 16.9% to €3,610 million ($3,184 million) (+8.8% L/L)
- EBITDA up 14.5% to €712 million ($628 million) (+8.0% L/L)
- Recurring free cash flow of €529 million ($466.65 million)
- Net profit, group share of €2,233 million (1,969.8 million)
- 588 hotels and 100,000 rooms developed
“Accor 2018 results reflect a profound transformation, marked foremost by the sale of our real estate division and a large number of acquisitions,” said Sébastien Bazin, chairman/CEO of Accor. “Our results are clearly improving, with EBITDA, free cash flow generation and organic development all once again at record highs. They are also perfectly in line with our medium-term objectives. Accor’ growth continues: we are increasing our global market share and consolidating our balance sheet. In 2019, the group will continue along this path. With the launch of ALL, Accor gives life to its augmented hospitality model servicing both its customers and partners. This ambitious and unique initiative in the hotel industry will help promoting the group and its brands, increasing customer loyalty and optimize its mid-term performance.”
In 2018, Accor benefitted from solid business momentum in most of its markets and continued its transformation toward an asset-light model through the disposal of 64.8% of AccorInvest and the swift redeployment of the cash proceeds from core acquisitions. Capitalizing on a record organic increase of its network with 43,905 rooms opened (300 hotels), the group ended 2018 with a hotel portfolio of 703,806 rooms (4,780 hotels) and a pipeline of 198,000 rooms (1,118 hotels), 78% of which in emerging markets and 49% in the Asia-Pacific region alone.
Accor Intros Loyalty Program
Accor has shifted its loyalty program into a fully integrated global platform integrating rewards, services and experiences. The new lifestyle loyalty program will recognize, understand, cherish, communicate with and reward guests like never before giving access to “ALL of Accor.” It will open doors across a portfolio of more than 30 hotel brands as well as a collection of bars, restaurants, nightclubs and “money can’t buy” experiences. This new lifestyle loyalty program will be delivered through a new app and website that will allow members to access the world of Accor from the palm of their hands.
The new guest promise of this new lifestyle loyalty program will address four strategic stakes:
- Introducing new premium status to reward the most loyal members
- Enriched benefits according to its augmented hospitality strategy
- A worldwide connected experience to earn and burn points across a range of brands
- a new digital app delivering value across work, live and play.
Partnerships and Experiences
Far beyond the stay, partnerships anchor ALL in member’s day-to-day, on the move and everywhere. Following a study, three main passion points resonate with loyalty members: Entertainment, Dining and Culinary & Sports. Accor has three main partnerships to illustrate those passion points:
- Accor extends its partnership with AEG beyond the AccorHotels Arena to include premium venues providing more than 60 000 tickets and private suites for our loyalty members in Latin America, Asia and Europe.
- Accor is the world’s leading sports and live entertainment company, with more than 100 million guests a year, delivering innovation that inspires athletes, teams, artists and fans.
- The group has signed a new partnership with IMG, which will unlock access to chef master classes and culinary encounters for members courtesy of its loyalty program. Starting in 2020, members will enjoy the best of Taste Festivals in London, Paris, Sao Paulo, Hong Kong and Toronto, with growth and expansion of the partnership into new cities over the next three years.
IMG is a global actor operating in more than 30 countries in sports, events, media, fashion and especially culinary with immersive food experience.
Accor and Paris Saint-Germain Football Club have signed a global multi-year partnership agreement. ALL, Accor Live Limitless, Accor’s new lifestyle loyalty platform, will become the Principal Partner and official jersey sponsor of the club starting from the 2019/2020 season.
To reflect the ambition of the group to engage guests in their daily lives and to embody the premium nature of its portfolio of brands, Accor launched a new premium visual language including a new corporate logo. The two distinctive brands, Accor and ALL, will utilize the same ‘iconic A’ monogram that represents the seal of excellence of the group and which fuses the letter A with the bernache which is the historical emblem of the group.
These initiatives are designed to increase the global visibility of the brands to strengthen the efficiency of distribution networks and to offer guests an attractive and unique loyalty program in the industry. To support these initiatives, the group will invest €225 million ($254 million) of the €4.8 billion ($5.4 billion) generated by the Booster operation, with the financial objective of creating €75 million ($84.97 million) per year of gross operating surplus in the medium term.
