French hotel group Accor is to be divided into two businesses to improve and grow the company's performance.
This will result in the end of the expansion of the company through leases and there will be no further disposals of company-owned hotels unless they are underperforming.
The new organisation will be built around geography with decision making taken closer to the frontline to provide a more efficient business. A new 10-member executive committee will include five regional heads of operations.
Sebastien Bazin, the new chief executive of Accor who was appointed in August, said: "Accor is a strong and unique group poised to derive benefit from rich opportunities. However, it deserves a much higher ambition to create sustained value. It requires the in-depth, rapid transformation of both its business model and its organization, as well as a clear and long-term vision."
HotelServices will operate nearly 3,600 hotels worldwide, while HotelInvest will start with a portfolio of around 1,400 properties,
Sébastien Bazin appointed as Accor chairman and CEO >>