French hotel giant Accor has appointed a new CEO as it reported a 22 per cent fall in operating profits for the first half of 2013.
Sébastien Bazin, formerly of property investment firm Colony Capital, has taken over as Accor’s CEO from Yann Caillère, who has left the company after seven years.
Accor’s operating profit fell from €190 million to €148 million for the first six months of the year despite revenue rising by 1.8 per cent to €2.69 billion.
The group’s “upscale and midscale” hotels (which includes Sofitel, Pullman, M Gallery, Novotel and Mercure) saw a 1.7 per cent decline in revenue year-on-year while distribution costs also rose due to its new digital strategy.
The company is currently in the first year of a three-year strategic plan which aims to cut costs by €100 million and reduce debt, as well as expanding the number of hotels in its portfolio, particularly in the Asia-Pacific region and through its Ibis budget brand.
Accor said it had 117,700 rooms in its development pipeline with 84 per cent of these under management or franchise contracts – 50 per cent of these rooms are in Asia-Pacific and 47 per cent will be under the Ibis brand.