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

Accor Group Update: 'Asset-Right' Strategy On Track

Since I highlighted shares of Accor Group (OTCPK:ACRFY), a French hotelier undergoing a business model change to an "asset-right" strategy, the shares have risen 18% relative to a 12% return for the S&P 500. All things considered, I'm happy with the recommendation, and I still believe there is meaningful upside after the recent pullback and additional clarity provided by management around Accor's strategic vision.

(click to enlarge)

ACRFY data by YCharts

The investment thesis continues to rely on a couple of key points which remain true today:

  • A move away from an "asset-heavy" operating model, whereby the capex-heavy activities, such as hotel maintenance are outsourced in return for high-margin, sticky and recurring royalties and/or management fees for
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