ACCOR

Analysis of Accor share price

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Accor shares are one of the major stocks on the stock market and are among the most popular with investors due to their high volatility. So if you are also planning to buy Accor shares, this article allows you to discover some practical information on the group's activity as well as an analysis of prices on a technical and historical level.

Elements that can influence the price of this asset:

Analysis N°1

First of all, the activities of the Accor group are subject to certain cycles in the hotel sector. The occupancy rate of hotels therefore needs to be part of the figures to be analysed, just like RevPar.

Analysis N°2

You should also keep an eye on the development of activities in Europe, which currently generates 38% of the group's profit and therefore determines the possibilities of growth or recession.

Analysis N°3

The results obtained by the group following the implementation of its digital plan called “on time, on track” will also be important. The main objective of this plan is to increase the number of reservations through the group's online reservation platform and to set up an AccorHotels marketplace as well as developing a loyalty card system and a room reservation system on mobile. All this is of course intended to counter the competition of other online players in the hotel industry.

Analysis N°4

Several other major operations are also expected in the months and years to come and investors are currently speculating a lot about a possible reinvestment by the Colony fund in the subsidiary HotelInvest. This fund is a former shareholder of the group.

Analysis N°5

Finally, the Accor share remains operable despite the strong presence of the Chinese investor Jin Jiang in the capital.

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General presentation of Accor

The French group Accor is known around the world thanks to its international presence. But above all, it has been the leader in the European hotel industry for several years. The activities of the group however, can be divided into different hubs according to the turnover they generate:

The management activities of owned and leased hotels which represent approximately 74.7% of the company's total turnover and which are grouped together under the HotelInvest subsidiary of the group.

The operating activities of hotels under management contracts (franchises) which represent approximately 25.3% of the company's overall turnover and are grouped together under the HôtelServices subsidiary.

In total and through these two distinct subsidiaries, the Accor group operates a large network of over 4,000 hotels around the world, i.e. more than 583,161 rooms in several countries. These hotels are classified by category within the group and go as follows:

  • There are 510 luxury and high-end hotels around the world under the raffles hotels, Fairmont, Sofitel, Pullman, McGalleri, Swissotel, Grand Mercure and The Sebel brands.
  • Mid-range hotels which number 1,281 under the Novotel, Novotel Suites, Mercure and Adagio brands.
  • The 2318 budget hotels which are the Ibis, Ibis budget, Adagio Access, Formule 1 and Hôtel F1 brands.
  • Finally, the 35 multi-brand hotels complete the group's range of hotels.

Regarding the geographical distribution of the Accor group's activities in terms of turnover, first of all there's France which alone generates more than 27.8% of the group's turnover, Europe and Middle East Africa which generate 48.4% of turnover, Asia-Pacific which generates 12.9% of turnover and the Americas which generate 9.5% of turnover. The remaining 1.4% of turnover is spread over other countries and geographic areas. These numerous hotels allow Accor to employ no less than 193,149 people around the world.

The Accor share price is listed on the Euronext Paris market, and is also included in the calculation of the Euronext 100 stock market index.

Analysis of Accor share price
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The major competitors of Accor

If you want to make good forecasts of Accor's share price movements on the stock market, you must first of all know this company well, but also its economic environment. We therefore suggest that you discover here the main competitors of the Accor group in its sector of activity.

Hyatt Hotels Corporation

First of all, we will consider the competitor Hyatt Hotels Corporation. This international hotel chain was created in 1957 and has developed rapidly to the point where it is now present in many countries throughout the world. Its headquarters are currently based in the United States, in Illinois, in a skyscraper in Chicago.

Hilton

Another direct competitor of Accor is the Hilton hotel group, which is an American group created at the beginning of the 20th century by Conrad Hilton. Today, this group ranks as the second largest hotel group in the world with more than 4,278 hotels and 700,000 rooms in more than 85 countries. One of the group's successes is its loyalty programme, Hilton Honors, which has more than 29 million members worldwide and several million new members each year.

Intercontinental Hotels Group

Still among Accor's major competitors is of course Intercontinental Hotels Group or IHG which is a UK-based multinational hotel group. Its operations currently include several major hotel brands and it is headquartered in Denham, Buckinghamshire near London.

Marriott International Inc

Of course, there is also competition from Marriott International Inc. which is an American hotel group specialising in luxury hotels and is one of the major players in this market worldwide.

Wyndham Destinations

Finally, the last competitor of Accor that we will mention here is the Wyndham Destinations group which was formerly known as Wyndham Worldwide Corporation. It is an American hotel group with its headquarters in Parsippany-Troy Hills, New Jersey, and is also present on many continents.


The major partners of Accor

Dubai Emaar Properties

In 2006, the Indian subsidiary of the Dubai real estate group Emaar Properties set up a joint venture with the Accor group with the aim of opening around 100 low-cost hotels in India. The joint venture has invested 300 million dollars in this project. It will launch 50 "Formula 1" type hotels in less than 5 years. It also intends to invest in many projects in the Arab world and in South Asia.

TravelCar

In 2015, TravelerCar, a company offering a car-sharing and car rental service between individuals, developed its presence in intramural Paris through the establishment of a strategic partnership with the Accor group.

Rixos Hotels

In 2017, AccorHotels and Rixos Hotels signed a strategic partnership aimed, for the AccorHotels subsidiary, at developing its presence in the luxury and very high-end market, through the development of its hotel resorts internationally.

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The factors in favour of a rise in the Accor share price:

The positioning of the Accor group on the global market for its sector of activity is of course the company's main asset. Keep in mind that Accor is currently number 6 in the hotel sector worldwide and that it's the leader in this sector in Europe. In total, Accor holds over 40% of the market share in Europe and outside France, where it holds a third of the market share. The group is establishing its presence around the world through various brands and labels including Fairmont, McGallery, Pullman, Raffles, Sofutel, Swisshotel, the Steble in the luxury sector as well as Adagio, Mercure, and Novotel for the mid-range and finally Formula 1 and Ibis for the most economical segment. This is how Accor manages to reach all socio-economic levels.

The fact that the group separates its activities into two large distinct hubs. The HotelServices hub with regard to the hotels under franchise or owned by the management and which represents 10% of the company's turnover and the HotelInvest branch for the hotels it owns which is also an asset for the group, as it benefits from low risk exposure.

The geographical distribution of the Accor group's activities also shows certain advantages, including an attractive balance. Although 37% of the group's activities are carried out in Central and Northern Europe with 14% in France, the rest of the world is also well represented with 20% of the group's activities carried out in the Americas, 16% in Mediterranean countries, the Near East and Africa and 4% in Asia-Pacific. Once again, this gives the group a certain kind security in the face of local economic and tourist risks.

Investors are also very appreciative of the strategy implemented by the group, the main objective of which is a sustainable expansion of activities with more than 170,000 rooms opening in the near future. The Asia-Pacific market is specifically targeted by this strategy since the group intends to carry out more than 44% of its future projects there. Of course, the other emerging countries outside of South America also represent a privileged target for the group with 28% of future projects.

Accor is also banking on hotel consolidation with parallel growth in new activities. It particularly occupies a leading position in several new activities, such as renting luxury private residences or offering digital concierge services. By taking over a few companies such as Fastbooking or OneFineStay, Accor is also trying to position itself in the Travel fast sector. The group also expects significant growth in its activities on the Chinese market with partnerships created with local companies Huazhu and Jin Jiang as well as with the company Hotelinvest.

Finally, it's important to point out the significant strength of the financial structure of the company, which has recently been boosted by the HotelInvest subsidiary. This stability is considered a true guarantee of strength for investors around the world.

The factors in favour of a drop in the Accor share price:

We know that the Accor group is highly exposed to risks with regard to the high-end and mid-range sectors despite the security provided by its economic segment. This risk is due to the current economic situation around the world in particular. With regard to the French market, the recent attacks also had a negative impact on tourism which naturally had repercussions on bookings.

The group is also threatened by a new form of competition with the growth and very strong development in recent years of Online Travel Agencies also called OTAs, which currently generate more than 20% of room bookings. The group takes this threat very seriously since it has put in place a strategy to win back with leading digital hospitality. Other groups such as Airbnb also continue to grab market shares.

As the activities of the Accor group are highly internationalized, it's also highly exposed to negative exchange rates, which must also be taken into account depending on the situation of the foreign exchange market.

Finally, after its latest acquisitions, the group is currently showing a higher level of debt than in the past, which is discouraging investors down somewhat.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

On which markets and indices is the Accor stock listed?

The Accor share price is listed on the French stock exchange Euronext Paris continuously. So, you can follow its stock quote live and in real time on this market. But the company is also part of several benchmark stock indexes including the French national stock market index CAC 40 as well as the secondary stock market indices CAC All Shares, CAC All Tradable, CAC Large 60, Euronext 100, PEA and Stoxx France 50.

Who are the main shareholders of the Accor group?

The capital of the Accor group is divided between various major investors and floating shareholders. Therefore, 66% of the company's capital is floating on the market. The group's largest shareholder is Jing Jiang International Holdings, which holds 11.5% of the capital of the Accor group. Next comes Qatar Investment Authority with 10.9% of the capital, Kingdom Holding Company with 6.1%, Huazu Investments with 3.1%, the shares of managers and directors for 1.4% and employees for 1%.

Can I trade Accor shares online?

Trading Accor shares online is of course entirely possible thanks to CFD trading platforms. You can speculate on the rise or drop of the price of this stock by registering on this type of platform. It's not a question of buying Accor shares but betting on the price trend of this security over a given period.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500