HAT303 Hotel Operations Management: Accor Group Portfolio Analysis

This case study provides a property portfolio analysis of Accor Group, comparing and contrasting four of its brands: Novotel Hotel Resorts and Grand Mercure Hotel & Resorts (luxury category), and Mercure Hotel and Adagio (budget category). The analysis focuses on provided facilities, services available, room rates, revenue streams, housekeeping functions, food & beverage outlets, and supplementary services. The document highlights the differences in target markets, operational strategies, and service offerings between the upper-scale and budget-scale brands within the Accor Group, revealing how each brand caters to specific customer needs and market segments. This assignment is contributed by a student and is available on Desklib, a platform offering a range of study tools for students.

Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
Contents
Introduction................................................................................................................................3
Upper Scale................................................................................................................................3
Novotel Hotel Resorts V/S Grand Mercure Hotel & Resorts (Luxury Category).....................3
Provided facilities...............................................................................................................3
Novotel Resorts...................................................................................................................3
Grand Mercure Hotel & Resorts.........................................................................................4
Service available.................................................................................................................4
Novotel Hotels and Resorts................................................................................................4
Grand Mercure Hotel & Resorts.........................................................................................4
Room Rates.........................................................................................................................4
Novotel Resort....................................................................................................................4
Grand Mercure Resorts.......................................................................................................5
Revenue Streams.................................................................................................................5
Housekeeping Functions.....................................................................................................5
Food & Beverage Outlets...................................................................................................6
Supplementary Services......................................................................................................6
Budget Scale...........................................................................................................................6
Mercure Hotel V/S Adagio.....................................................................................................6
Provided facilities...............................................................................................................6
Mercure Hotels...................................................................................................................6
Adagio.................................................................................................................................7
Service available.................................................................................................................7
Mercure Hotel.....................................................................................................................7
Adagio.................................................................................................................................7
Room Rates.........................................................................................................................7
Mercure Hotel.....................................................................................................................7
Adagio.................................................................................................................................7
Revenue Streams.................................................................................................................8
Housekeeping Functions.....................................................................................................8
Food & Beverage Outlets...................................................................................................8
Supplementary Services......................................................................................................9
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
Bibliography.............................................................................................................................10
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
Introduction
Accor group of hotels is an international brand operating in more than 100 countries with a
total room strength of around 4000 rooms. Based in France this group has a diversified
portfolio to cater to the needs of “Luxury hotel accommodations” and “Budget hotel
accommodations (Sturman, 2018).” In order to maintain a variety in its offering, with a
passage of time the Accor group has floated more than 15 brands. Each brand has a different
set of signature and services (Saha, 2918). This brand has maintained a variety in the
offerings while following the norms of star category ratings as they are prevailing for the
accommodation industry (Esan, 2018). In the current assignment, we are comparing four
different brands of this group falling under two different categories on the lines of a Property
Portfolio analysis. We will compare and contrast these properties on six different criteria.
Upper Scale
Novotel Hotel Resorts V/S Grand Mercure Hotel & Resorts (Luxury Category)
Provided facilities
Novotel Resorts
Most of the hotel and resorts working under the flagship of the Novotel brand are in
compliance with five-star amenity standards. Gradually they are integrating other brands in
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
the service and adding a luxury value to the amenities. Gym facility, Spa and recreation
facilities are present in most of the properties (Enfield, 2018).
Grand Mercure Hotel & Resorts
Their travel desk is functional 24x7 and if you are business traveler then prompt bookings are
always on their tips. Rooms are fitted with ironing facility, coffeemakers. A work desk is
present in every room.
Service available
Novotel Hotels and Resorts
Standard services like doctor on call, bell boy, travel desk, pick up and drop are available on
the demand of the customer. High-speed internet service, continental breakfast and gym can
be availed as a part of the package or on the basis of independent hiring.
Grand Mercure Hotel & Resorts
The focus of this brand is more on business tourism, they provide the services like work
centers and conference halls with their regular services. You can also plan conventions and
business meets in these properties after paying an additional cost.
Room Rates
Novotel Resort
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
The room tariff of Novotel resort shows little variations during various seasons. The property
in Berlin is available at $ 150 per night on a twin sharing basis. This is the minima. On the
higher side we have Montreal property of the same chain; here you need to pay $440 for a
night. Amsterdam property shows a big variation, during the peak season it touches the mark
of $1000 per night and tumbles down to $ 400 in regular seasons (Chamberlin, 2015).
Grand Mercure Resorts
When we check various properties across the world than on an average room tariff with a
variation ranging from $ 350 to $450 prevails.
Revenue Streams
In the year 2015, the Accor group adopted the technology of Total revenue stream
optimization and management. They discarded the traditional revenue management systems
ahead of the dot.com boom in the business (Ting, 2017). All the 15 accommodation based
properties and five ancillary properties were amalgamated in pre-designed and tailor-made
and pre-designed packages. This exercise formed a composite revenue model for all the
luxury offerings of the company. However, based on the previous year data and general
projection of the properties we can state that Novotel mainly caters to the leisure travelers for
the revenue streams whereas Grand Mercure is dependent on business tourists (Ballard,
2018).
Housekeeping Functions
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
When it comes to the housekeeping facilities, both the properties claim to provide five-star
facilities under four-star rates. The Grand Mercure also enjoys a compliance with five-star
rating systems approved by the international bodies.
Food & Beverage Outlets
Novotel is a brand designed for the style leaders; all the Novotel properties and creates a
distinction for them. Grand Mercure is designed for the business leaders and the food and
beverage outlets follow standardized menus so that they can cater to business travelers.
Supplementary Services
Most of the supplementary services spa and gym, parking and laundry are aimed to entertain
the leisure travelers. Grand Mercure on the other hands is more focused on convention
centers, business centers and other such services that are essential for business travelers.
Budget Scale
Mercure Hotel V/S Adagio
The business model of the Mercure hotel follows the traditional lines whereas Adagio works
along the lines of paying guest or home rentals. Adagio is a new concept, however, it caters
to the lower strata of the budget travelers and provides them long haul stay on the basis of a
package (Chetwynd, 2018).
Provided facilities
Mercure Hotels
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
Most of the properties are four-star category hotels, standard facilities like a pickup, doctor
on a call and travel desk are available. All the properties have separate restaurant facilities
and gyms. Certain properties also have a swimming pool attached to them.
Adagio
Vacation rental apartments are available the supply of the facilities is a subject between the
owner and the guest. A standardized format is available, however; the delivery of the
facilities may vary from place to place.
Service available
Mercure Hotel
Room service, high-speed internet, fridge in the room, dining space, working table and other
necessary services attached to the four-star category rooms are at the disposal of the guests.
Adagio
There is no standardization of the services, in general terms, a guest can use the kitchen of the
host, and standards of the services may vary from place to place because every country of the
world follows different standards of the services (Foxx, 2018).
Room Rates
Mercure Hotel
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
On the scale of a median, we can say that most of the properties of Mercure hotel group offer
a price range of $ 100 to $200 for a day depending on the location of the hotel and rate of the
inflation in the city.
Adagio
The rate of the vacation rentals may vary from place to place, it is more of a package, the
bigger the package the lesser the amount for a day. Early bird discounts along with surprising
deals can amaze the travelers sometimes.
Revenue Streams
The revenue streams connected to the Adagio are more informal in nature. Its operational
areas are limited and the reach is also limited. They are bound to share a big sum with the
actual service providers because they are not the owners of the property (Caswell, 2018).
Mercure on the other hands moves on the traditional business model of travel agents and tour
operators. A big chunk of their investment also comes from direct internet bookings as well.
Housekeeping Functions
Mercure offers a standardized service palate, anything that you should expect in a four-star
hotel or a three-star hotel. All the hotels maintain a housekeeping staff and most of the
facilities are available in-house. The rentals available under Adagio offer various packages.
Some facilities offer a housekeeping staff whereas in some cases tourists only get a place and
the necessary items, they are required to manage housekeeping activities on their own
because they are availing the services of a home vacation rental.
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
Food & Beverage Outlets
Mercure hotels provide continental plans, American plans and local cuisines that are
available in the restaurants attached to their facilities. While hiring with Adagio, you can
have choices, you can hire a kitchen along with the properties, and some vacation rental
owners also provides homemade food on the lines of a paying guest. The facilities of
restaurant and bars are not a part of most of the properties that are attached to the Adagio.
Supplementary Services
Properties marketed under Mercure and Adagio offers facilities like laundry and others at a
price. Some properties can offer you free parking as well. Certain Properties under Adagio
are pet-friendly and you can have pets after paying extra money.
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Running Head: PROPERTY PORTFOLIO ANALYSIS OF ACCOR GROUP PROPERTIES
Bibliography
Ballard, S. (2018). Spotlight on: AccorHotels. abtmag, Viewed on 7-9-18.
http://abtamag.com/2018/09/03/spotlight-on-accorhotels/.
Caswell, M. (2018). Aparthotel Adagio unveils The Circle concept. Business Traveller,
Viewed on 7-9-18.
https://www.businesstraveller.com/business-travel/2018/08/02/aparthotels-adagio-unveils-
the-circle-concept/.
Chamberlin, C. (2015). The Accor Plus program for Aussie business travelers. Australian
Business Traveller, Viewed on 7-9-18. https://www.ausbt.com.au/the-accor-advantage-plus-
program-for-aussie-business-travellers.
Chetwynd, C. (2018). Serviced apartments: blurred lines. Buying Business Travel, Viewed on
7-9-18. https://buyingbusinesstravel.com/feature/2927766-serviced-apartments-blurred-lines.
Enfield, L. (2018). Why Novotel London Canary Wharf boss never holidays in hotels. In
Your Area, Viewed on 7-9-18. https://www.inyourarea.co.uk/news/why-novotel-london-
canary-wharf-boss-never-stays-in-hotels/.
Esan, N. (2018). Hotels: Trading Places. Buying Business Travel, h Viewed on 7-9-
18.https://buyingbusinesstravel.com/feature/2329239-hotels-trading-places.
Foxx, J. T. (2018). Operators seek new European markets for serviced apartments. Hotel
Management, Viewed on 7-9-18.https://www.hotelmanagement.net/development/operators-
seek-new-european-markets-for-serviced-apartments.
Saha, P. K. (2918). India is barely discovered in terms of true tourism: AccorHotels’ Michael
Issenberg. LiveMint, Viewed on 7-9-18.
https://www.livemint.com/Companies/olvXPUf7t8ADzN9kPv4ZuO/India-is-barely-
discovered-in-terms-of-true-tourism-AccorHo.html.
Sturman, C. (2018). Top 10 biggest hotel chains. Business Chief, Viewed on
7-9-18.https://www.businesschief.com/top10/7293/Top-10-biggest-hotel-chains.
Ting, D. (2017). Accor CEO: We Want to Transform the Way Everyone Uses Hotels. Skift,
Viewed on 7-9-18. https://skift.com/2017/02/23/accor-ceo-we-want-to-transform-the-way-
you-use-hotels/.
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