Page 74 - Forbes - Asia (March 2020)
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customer base,” says Bazin. “It costs so much to
acquire customers that whenever they stay with
you, make sure you follow them and give them
whatever they want outside of the hotel.” Starting
this year, Accor will introduce a revamped loyal-
72 ty program across all its properties called ALL—
standing for Accor Live Limitless.
With typical French flair, ALL will offer what
Bazin calls “money-can’t-buy” experiences—ex-
clusive gallery exhibitions, private dinners host-
ed by Michelin chefs and backstage concert pass-
es. In Asia, the program—for now —offers mostly
room discounts and wine-tasting dinners.
To ensure ALL lives up to its promises, Accor
is investing €400 million to buy into companies
that operate restaurants, nightclubs and exclu-
sive lounges so that Accor has its own in-house
resources to wow guests. It also has tieups with
the likes of talent management company IMG
and sports and entertainment firm AEG. How-
ever, a €50 million deal in early 2019 to sponsor
French football team Paris Saint-Germain did
Paris. In 1997 Bazin became head of the Euro- “Every brand we add raise a few eyebrows.
pean business of Los Angeles-based property in- gives us another op- Some investors and analysts questioned how
portunity to seduce
vestment firm Colony Capital. At Colony, he led an owner,” says the large sum paid will provide a return on its
Sébastien Bazin.
several hotel acquisitions, including a €1 billion investment. “Our concern is that the decision to
investment in Accor, before representing Colony sponsor may not have been made in the best in-
on Accor’s board in early 2006. In August 2013, terest of shareholders,” Thomas Beevers, founder
Bazin was appointed chairman and CEO of Ac- and CEO of London-based equity research firm
cor (and left Colony). StockViews, wrote in a report last March.
In 2015, he led Accor’s $2.9 billion purchase of Bazin counters that these investments are all
Canada-based FRHI Hotels & Resorts (the “R” designed to dazzle guests and to transform Accor
in FRHI originally stood for Raffles). The group into a lifestyle operator. Loyalty programs have
was studded with luxury gems, such as the Raffles been an increasingly important revenue source
chain, the Fairmont chain, the Savoy in London for the big chains—Marriott’s Bonvoy generates
and the Plaza Hotel in New York. Accor bought a roughly 6.5% return on investment and 50%
FRHI from its three owners, Colony, Saudi Ara- of the chain’s hotel booking. Bazin aims to grow
bia’s Kingdom Holding, and the Qatar govern- earnings from its loyalty program to more than
ment. In the transaction, Accor paid $840 million €100 million. “It’s not good enough, but it’s so
in cash and 46.7 million new shares that left King- much better than €6 million right now,” he says.
dom and Qatar holding respective stakes of 5.8% Despite headwinds in Accor’s key Asia Pacif-
and 10.5% in Accor (now 6.1% and 10.9%). Raf- ic markets, including the trade war, Hong Kong’s
fles, which had been bought by the Qatar govern- unrest, and now the coronavirus outbreak, ana-
ment in a separate deal, remained 100% owned by lysts are generally optimistic on Accor’s prospects
the Qatar government’s Katara Hospitality. in Asia. “The trade war may actually be benefi-
To further woo luxury travellers, Bazin needs cial for the French company if you think that Chi-
to beef up Accor’s membership program, simi- na may limit access to its market to the likes of
lar to what Marriott has been doing with its Bon- [U.S. companies] Marriott, Hilton or Hyatt,” says
voy program. “What we want to do is retain our Thomas Sineau, senior intelligence analyst at
New York-based analytics firm CB Insights.
Bazin is already planning Accor’s next move— MUHAMMAD FADLI FOR FORBES ASIA
In Asia, a new Accor property to partner with major digital players such as Ali-
baba, Amazon and Google. “Those guys respect
opens every three days. size,” he says. “Scale matters even more today than
it mattered 20 years ago.”
F ORBES A SIA MAR CH 2020
