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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76.4% of retail investor accounts lose money when trading CFDs with this provider.

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:

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.


 

Knowing Accor shares competition:

With a franchise strategy aimed at reducing its assets on the balance sheet and developing in countries such as Brazil, Russia and China, the Accor group is still one of the leaders in the hotel industry worldwide. But competition which drives more and more drops in prices is causing damage and is likely to take some of its market shares. To fully understand how the Accor share price is likely to evolve over time, it's important to know this competition. That's why we suggest you check out the main hotel groups worldwide, those being the main competitors of Accor:


 

The strategic alliances set up by the Accor group:

 

The strengths and advantages of Accor shares as a stock market asset:

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 weak points and disadvantages of the Accor share as a stock market asset:

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.

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.

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Trade the Accor share!
76.4% 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.