Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Accor Group: Transformation To 'Asset-Right' Strategy Makes Shares Undervalued

Accor Group (OTCPK:ACRFY) ("Accor" or "the company") is the world's largest hotel operator (by revenue) and headquartered in Paris, France. Many US-based investors may not be familiar with Accor, given the company is largely devoid of any business activity in the United States after selling its Motel 6 brand to Blackstone (NYSE:BX) in 2012.

Accor, however, is going through a business model transformation, moving towards an "asset-right" operating model, whereby Accor is selling its hotels and entering into franchise and management contracts with hotel owners for use of its extensive brand portfolio.

It is a similar strategy to that undertaken by InterContinental Hotel Group (NYSE:IHG) and Marriott International (NYSE:MAR). Each of those...

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