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Accor CEO urges hotel owners to "raise their prices frankly"

2022-05-20T12:53:19.288Z

The CEO of Accor called on the hoteliers who manage the group's establishments to "frankly raise their prices", to "find capacities...



The CEO of Accor called on the hoteliers who manage the group's establishments to "

frankly raise their prices

", to "

regain financial capacity

" after two years of health crisis, and to adapt to "

very operating costs inflationary

" linked to rising wages and energy prices.

Presenting on Friday "

the highlights in 2021

" at the group's general meeting of shareholders, Sébastien Bazin spoke of "

the desire to travel (which) is only accelerating

" and "

the prices

" of the services of its hotels - Accor has some 5,300 worldwide - which "

are higher than 2019

".

"

We are pushing our owners to frankly raise their prices, first because they have suffered just as much as us, many of them have cash flow difficulties

," said the CEO of the world's sixth hotel group (Novotel, Sofitel , Mercure, Ibis, Fairmont, Mövenpick, Raffles, Jo and Joe...).

The second reason is because the operating costs of a hotel are very inflationary, due to the increase in wages and energy prices, he added.

Salary agreement

As a result,

"the only way for hotel owners to keep margins equivalent to those of 2019 is to (...) pay more

," said Sebastien Bazin, saying he hopes hotel prices will continue to rise .

in 2023. A wage agreement between the social partners has established since April 1 a minimum wage 5% higher than the minimum wage and an average increase of 16.33% in the wage scale, in a branch of hotel cafes restaurants (HCR) historically low salaries.

Friday the shareholders of Accor renewed for three years the mandates of four directors, including that of the former President of the Republic Nicolas Sarkozy with 95.48% of the votes cast.

On the other hand, the compensation of CEO Sébastien Bazin for the year 2021, where Accor generated a net profit of 85 million euros after having suffered in 2020 a historic loss of nearly two billion euros due to the coronavirus pandemic. Covid-19, was approved with only 79.26%.

It includes a fixed compensation of 950,000 euros, to which are added a variable compensation of 1.42 million euros and 79,034 performance shares with a value of 2.37 million euros - the acquisition of which is subject to achievement of several performance criteria.

Source: lefigaro

All business articles on 2022-05-20

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