Accor CEO urges hotel owners to ‘openly raise their prices’

Accor’s CEO urged the hoteliers who manage the group’s operations to “openly raise their prices“, to the “regain financial viability” after two years of health crisis and to adapt to “highly inflationary operating costsassociated with rising wages and energy prices.

Present Friday”Highlights 2021During the group’s general meeting, Sébastien Bazin mentioned “the desire to travel (which) only accelerates” and “the pricesof the services of its hotels – Accor has around 5,300 around the world – theare higher than 2019“.

We encourage our owners to raise their prices openly, firstly because they have suffered as much as we have, many of them have liquidity problems“ confirmed the CEO of the sixth hotel group in the world (Novotel, Sofitel, Mercure, Ibis, Fairmont, Mövenpick, Raffles, Jo and Joe…).

The second reason is that running a hotel is very inflationary due to increased wages and energy prices, he added.

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salary agreement

consequently, “The only way for hotel owners to keep margins at 2019 levels is to (…) pay more”said Sebastien Bazin, saying he hopes hotel prices will continue to rise in 2023. A collective agreement between the social partners, since April 1, provides for a minimum wage 5% above the Smic and an average increase of 16.33% of the salary scale, in a branch of Hotel-Cafe-Restaurants (HCR) with historically low levels salaries.

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

On the other hand, CEO Sébastien Bazin’s remuneration for 2021, in which Accor generated a net profit of 85 million euros after suffering a historic loss of almost two billion euros in 2020 due to the coronavirus pandemic Covid-19 with only 79.26% approved.

It includes fixed remuneration of EUR 950,000, plus variable remuneration of EUR 1.42 million and 79,034 performance shares worth EUR 2.37 million, the acquisition of which depends on the achievement of a number of performance criteria.

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