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.