Jean-Jacques Morin

Welcome to this first LinkedIn #newsletter. I wanted to share with you our progress, address our challenges and occasionally offer perspectives on topics generating discussion in the #hospitality industry.

First things first - Let's explain Accor organization The new Accor organization has been set up early 2023 with three main objectives:

focus and upskill teams & brands

simplify & optimize operating model and processes

expand & deliver profitable growth

To achieve this objective, we have organized the Group into two divisions, each comprising dedicated brands and prioritizing distinct strategic objectives aimed at solidifying our leadership position. Below is a brief overview of our rationale:

Two divisions to improve our profitability I am spearheading the Premium, Midscale & Economy division (PM&E), which encompasses teams distributed across three regions worldwide.

Europe North Africa

Middle East, Africa, Asia-Pacific

Americas

Noting that Greater China is shared between our two divisions

Our division encloses popular brands like Pullman Hotels & Resorts , Novotel Hotels , ibis, ibis Styles, ibis budget , and TRIBE Hotels , alongside conversion-ready brands such as Mercure Hotels , greet hotels , Mövenpick Hotels & Resorts , and Handwritten Collection .

Without any further ado, I wanted to share with you my first takeaways leading PM&E:

Celebrating one year for the PM&E division! After more than one year, I am proud of the team's commitment to excellence and execution . Our 2023 results speak for themselves: we have made significant strides toward our objectives. This is not about pride; it is about acknowledging hard-earned results and the solid foundation we have built with the entire team. The PM&E division operates on a large scale. Effectively managed by geography, it ensures uniformity and adherence to methodology throughout.

Overview of the Accor PM&E division How did we achieve this success?

Focus on brands: we have reduced hotel detractors and enhance our customers' journey every day through our interactions with them

Focus on markets : for example, in Japan, we are doubling the size of our network by integrating the Daiwa Resorts portfolio as we collaborate with our partner JHRA.

Focus on operational excellence , as it has proven to be beneficial, as evidenced by the 2023 results we published end of February ⤵️

Our accomplishments in 2023 are just the beginning of a transformative journey .

This collaborative effort is crucial as we align our collective ambitions and energies towards a shared vision. Now, as we look ahead, let's elevate our goals, and harness the power of our global community to reach even greater heights!

Pullman in the spotlight Pioneering • Conscious • Invigorated Premium brands are one of our focus areas. I propose a focus on the oldest brand in our group, Pullman, which carries a bold ambition for the upcoming years . Named after the Pullman railway coaches, the Pullman Hotels brand was established in the late 1980s. It boasts a rich pioneering history that introduced numerous progressive ideas to the world.

Pullman has a strong legacy as a trailblaze Recent highlights include:

The opening of the first two Pullman hotels in Singapore, featuring Pullman Singapore Hill Street, which embraces the iconic theme of travel and trains 🇸🇬

The launch of the 50th Pullman hotel in Greater China 🇨🇳

A substantial expansion in complementary offerings, particularly in MICE (meetings, incentives, conferences, exhibitions) and hybrid working environments 🧑💻.

Pullman's global footprint has reached 155 hotels. Its expansion is poised to continue, driven by its sophisticated blend of innovative work and event spaces with lively social experiences catering to business, leisure, and local guests. We have over 50 hotels in our pipeline!

📸 I take pride in showcasing the exceptional experiences our properties offer. The enclosed images are a glimpse into the unparalleled service and exquisite environments we provide:

Pulman Singapore The Orchard - Singapore Pullman Phuket Arcadia Naithon Beach - Thailand Pullman Maldives Maamutaa - Maldives Pullman Cape Town City Centre - South Africa Pullman Lyon - France Pullman Sao Paulo Ibirapuera - Brazil

Deciphered: ESG x hospitality Those who know me are aware of my attachment to the press review. This exercise is key to ensure we are not self-centered and to decipher the upcoming trends.

A Hospitality Investor article written by Ifeoluwa Taiwo caught my attention in late December. 'How Ignoring ESG Could Hurt Hoteliers’ Finances in 2024':

👉 https://www.hospitalityinvestor.com/esg/how-ignoring-esg-could-hurt-hoteliers-finances-2024

https://www.hospitalityinvestor.com/esg/how-ignoring-esg-could-hurt-hoteliers-finances-2024 I will comment on three selected excerpts:

"From January 2024, banks will be required to publish their Green Asset Ratio (GAR) for the 2023 financial year, which will lay bare the ratio of their assets that finance and are invested in EU Taxonomy-aligned economic activities."

→ Taking ESG (Environmental, Social, and Governance) issues seriously is no longer optional, but an absolute priority. That is why Accor is paving the way in that regard, we have been recently awarded the A-grade from the Carbon Disclosure Projec t.

“If you’re a private investor and sustainability comes with a massive bill attached to it, how do you pay for it? Until they feel like it will impact the business, they will put it on the backburner.” - Carine Bonnejean, ISHC , managing director hotels at Christie & Co.

→ Indeed, it will impact the business. We must continue our educational efforts with our owners and business partners, as it is crucial for them to be as convinced as we are! I am deeply committed to gathering feedback directly from the field to understand any concerns or suggestions.

“The businesses that start to work on their ESG programs sooner rather than later are going to be the ones who are the winners. Those who fail to do that and keep postponing the decision are most likely to be the ones who will be the losers” - Ufi Ibrahim , CEO Energy & Environment Alliance

→ Absolutely true! But, once again, we need to follow the right METHOD (hence the name of this newsletter; once an engineer, always an engineer!). Investing without the ability to accurately measure our performance and progress, learn from them, and sustain our efforts poses a significant risk of inefficiency and fragmented endeavors. We need to establish common, transparent metrics and shared methodologies for measurement, and that's the path we are endeavoring to lead all players in the hospitality industry toward.

🔎 To delve deeper, it is crucial to acknowledge that a significant portion of the hospitality industry's Environmental, Social, and Governance (#ESG) impact stems from its suppliers.

Serving as the primary link to supply chains, procurement functions and organizations play a pivotal role in fostering more sustainable practices. At Accor, procurement is integral to many of the Group's sustainability commitments. Our achievement in eliminating single-use plastic products from the guest experience exemplifies this commitment. We accomplished this by globally and locally sourcing alternatives to plastic, and by motivating our suppliers to embrace change and innovation.

And to extend our positive impact, we co-founded the “ Hospitality Alliance for Responsible Procurement ” (HARP), in partnership with four global hotel groups – Hilton, IHG Hotels & Resorts, Marriott International, Radisson Hotel Group, alongside two global hospitality group purchasing organizations – Avendra and Entegra, and sustainability rating agency EcoVadis.

This is the valuable work conducted by Caroline Tissot , Brune Poirson and the operational teams all around the world.

Thank you for your attention, let's continue the conversation in the comments and see you in a few weeks for the next issue of METHOD!

Jean-Jacques

Jean-Jacques Morin

Paris et périphérie

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