Accor's Two-Track Strategy: Luxury for Growth, Economy for Profit

Accor on Thursday reported an 11% revenue increase for 2024 - a jump that largely came from its luxury division. The company's luxury and lifestyle segment grew 19%, more than triple the 5% growth rate of the mainstream business.

The Paris-based hotel operator also said it's focusing its expansion in high-growth markets, including South America, China, India, and the Middle East.

The board asked Group CEO Sébastien Bazin to remain in his role until he reaches the company's mandatory retirement age of 65 in late 2027.

Ahead of Thursday's earnings results, Skift spoke with Group Deputy CEO Jean-Jacques Morin about the company's strategy and his management style.

Morin joined Accor in late 2015, first as CFO and quickly added the title of Group Deputy CEO. In 2013, he added the job of CEO of the company's "premium, midscale and economy" division.

Morin spoke with Skift about Accor's strategic pivot in key areas, including brand quality, geographic focus, business models, and technology.

Accor has recently exited dozens of properties to maintain brand standards, particularly focusing on legacy mid-market brands like Novotel but also legacy luxury brands like Fairmont.

Morin said consistent quality across the portfolio matters more than the short-term loss of fee revenue.

He gave some context: Since 2023, Accor has run a so-called "Pure" project that empowers its leaders to remove what it calls "detractors," or underperforming pro