As one of the biggest names in the hospitality sector, Accor wanted to maintain its lead in the industry. The company achieved this goal by changing their business model fundamentally. Accor made important investments in both hospitality (e.g. FRHI) and services companies (e.g. John Paul, Very Chic) to speed up the pace of trading. A separate entity, AccorInvest, was created to hold the group’s assets: hotels. BearingPoint played an important role in the divestiture of the group by performing the IT vendor due diligence work.
The company wanted to stay ahead of their historical competition and face the emergence of Online Travel Agencies and private rental companies by switching to an asset-light business model and making substantial investments in loyalty programs, new acquisitions and marketing. To generate the necessary capital for this transformation, they decided to divest the majority of the hotels they owned.
AccorInvest, a separate legal entity, was created for handling the real-estate transactions. To separate AccorInvest from Accor, a series of complex activities were carried out, including IT vendor due diligence. This exercise was integral to understanding and mitigating any risks in order to present an attractive risk profile and insure business continuity to external investors.
BearingPoint began the IT vendor due diligence task with a complex assessment of the IT landscape. A detailed IT separation plan was developed, including a separation budget. BearingPoint also defined the target IT organization together with the target budget (Capex/Opex) and articulated the implementation approach for all key functions. Legal matters around IT supplier contracts were also addressed. This resulted in no further inquiries from investors.
The quality of the IT vendor due diligence, along with the seamless execution of the IT carve out substantially contributed to the smooth separation of AccorInvest. As a result of the divestiture, Accor raised €4.7 billion to leverage in purchasing new assets. The capital raised and the focus on new hospitality companies acquisitions, combined with investments in loyalty and additional well-being services, enabled Accor to consolidate its position as a global leader in the hospitality industry.
Accor is a global leader in hospitality with a portfolio of over 33 brands that range from luxury to economy 4800 hotels in 100 countries.