Accor Financial Analysis Reveals Strengths and Opportunities

1
Organizational Analysis of Accor
Trinity Western University

MBA 684
By Mengfei Wang (Fred)

Zhuo Hu (Mark)
15thNovember 2022
2
Executive Summary
Accor company is one of the largest and most successful operating in most parts of the world.
Through financial analysis in the company that is done regularly, the company has been able to
maintain its good annual returns, boosting one of the best globally. The financial analysis makes
it possible for the company to identify its areas of weak points and work on them for its
betterment. For instance, the line-item comparison in the financial analysis highlights various
issues that can occur with an entity, including liquidity, operational competence, and
productivity. The financial statement provides the basis for the company's financial information.
Although the company is one of the best in the region, it faces stiff competition from other
companies. Some of the main competitors to the company include Hyatt Hotel Corporation and
Marriot International.
Accor company is one of the largest and most successful operating in most parts of the world.
Through marketing analysis, Accor has been able to improve its performance by improving the
way it promotes its products. The customers will therefore increase and hence increase its
productivity. The product comparison table shows that the company performs better than its
rivals. As a result, their products are of high quality, and the company offers the best warranty
services. Additionally, through R&D, the company will be able to achieve its goals and thus
ensure high customer satisfaction.
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Table of Contents
Cash Assessment.........................................................................................................................................5
Working capital as a percentage..............................................................................................................6
Current ratio.............................................................................................................................................6
Quick ratio...............................................................................................................................................7
Accounts receivable turnover..................................................................................................................8
Inventory turnover...................................................................................................................................8
Long-term debts/owner's equity...............................................................................................................9
Cash from operations...............................................................................................................................9
Profitability Assessment............................................................................................................................10
Return on Assets (ROA)........................................................................................................................10
Return on Equity (ROE)........................................................................................................................11
Assets turnover......................................................................................................................................12
Total assets/owner's equity....................................................................................................................12
Gross profit margin................................................................................................................................12
Operating income..................................................................................................................................13
Income before tax..................................................................................................................................13
Recommendations for Investors................................................................................................................14
Marketing Analysis....................................................................................................................................15
Industry Analysis...................................................................................................................................15
Target Market........................................................................................................................................16
Customer Profile....................................................................................................................................16
Major Competitors and Participants.......................................................................................................17
Market Segmentation.............................................................................................................................17
Projected Market Growth and Market Share Objectives........................................................................17
Product and Service Offering.................................................................................................................18
Product and Service Uniqueness............................................................................................................18
Product and Service Descriptions..........................................................................................................18
Competitive Comparisons......................................................................................................................20
Research and Development....................................................................................................................22
Patents and Trademarks.........................................................................................................................23
Recommendations to the Company...........................................................................................................24
Conclusion.................................................................................................................................................24
4
Financial Analysis.....................................................................................................................................24
Marketing Analysis....................................................................................................................................25
References.................................................................................................................................................26
Appendix...................................................................................................................................................29
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Accor Financial Analysis

Accor company is one of the largest and most successful operating in most parts of the
world. The financial statement provides the basis for the company's financial information.
Analysis of a company's financial status is critical and should be conducted as frequently as
possible1. It provides the company with immense information concerning its revenue, expenses,
output, commitment weight, and capability to achieve its long-term financial obligations. It
allows the company to budget for the future2. Company financial analysis is also crucial as it
guides investors interested in putting in their finances. A company with good returns will attract
more investors. Even after Covid-19, challenges being faced by the hospitality industry, in
general, will continue3. Therefore, companies should develop sustainable strategies to ensure
that, despite the challenges, they can generate as many returns as possible.
Cash Assessment
Accor Marriott International Hytta Hotels
2018 2019 2020 2018 2019 2020 2018 2019 2020
Working 20.30 52.11 46.51 -17.97 -16.93 -27.69 6.4 12.4 76.4
capital
(%)
Current 1.24 1.72 1.26 0.420 0.468 0.491 1.27 1.57 2.60
ratio
Quick 1.24 1.71 1.25 0.382 0.431 0.461
ratio
Account 5.85 6.24 3.04 4.11 3.8 3.48 11.46 11.83 5.6
s
receivabl
es
turnover
Payable 192.19 209.24 135 22.27 24.66 28.32 468.88 622.35 539.33
Turnove
r
Inventor 127.7 102.3 55.5 68.6 70.5 53 248.2 339.8 229.7
y
turnover
Long- 64810 69250 63880 214710 244380 242710 39660 44500 591500
term 00 00 00 0 00 0 00 00 00
debts
Cash 12550 25740 29870 - - - 12630 15630 157800
from 00 00 00 182400 227700 294800 00 00 0
operatio 0 0
ns
1
Eva Stichhauerova, Miroslav Zizka, and Natalie Pelloneova, “Comparison of the Significance
of Clusters for Increasing Business Performance,” Journal of Competitiveness 12, no. 3
(September 30, 2020): 172–89, https://doi.org/10.7441/joc.2020.03.10.
2
Daft, Richard L & Armstrong Ann. Organization theory and design. Third Canadian Edition
Nelson Education, 2015
3
Ibid
6
Source: Excel spreadsheet (Yahoo!, 2020; Yahoo!, 2021; Business Wire, 2020)
Working capital as a percentage
Working capital implies the disparity between a company's current assets and its current
liabilities. It measures a firm's interim operative liquidity and replicates the corporation's
capability to pay its current debts and continuing operating outlays4. A corporation with a lot of
working capital can handle its short-term obligations, including unanticipated expenditures. A
firm with a trivial sum of working capital may struggle to remunerate its debts and may be in
jeopardy of default5. A company's working capital is an essential indicator of its financial health.
According to the company's financial statements, Accor's working capital was 20.3% of total
assets in 2018, 52.11% in 2019, and 46.51% in 20206. This increase in 2019 in working capital
as a percentage of total assets indicates that the company was using its working capital more
efficiently. The decreased in 2020 working capital to 46.51%7. This indicates that the company's
performance decreased in 2020 as of 2019, which might have been attributed to the company's
sales reduction. The same trend is witnessed in Marriott but in a negative pattern even though its
working capital percentage increased slightly in 20208. In Hytta Hotels, working capital trends
increase from 6.4% to 12.4% to 76.4% for three years consecutively without any decrease9.
Current ratio
The current ratio of Accor Company indicated an increasing trend from 2018 to 2019 by
0.48 times10. In 2020 the decline was slightly felt as it declined to 1.26. This trend is
unpredictable even though the company's status is in good condition. In 2018, 2019, and 2020
the company's current assets were 3,779,000, 5.035,000, and 3,684,000, respectively11. However,
the current ratio remains above 1, which indicates that the company can pay off its debts using
the current ratio. The current ratio for Marriott International keeps increasing from 0.420, 0.468,
and 0.491 from 2018 to 2020, respectively, indicating the company is significantly improving12.
However, since the current ratio is below 1, the company will acquire more loans to settle its
debts. According to the estimated current ratio, Hyatt Hotels Corporation's current ratio margin
4
Irma Christiana, “FINANCIAL RATIO in the ANALYSIS of EARNINGS MANAGEMENT,”
International Journal of Accounting & Finance in Asia Pasific 3, no. 1 (February 29, 2020): 8–
17, https://doi.org/10.32535/ijafap.v3i1.714.
5
Ibid
6
Yahoo! Finance, “Accor SA (AC.PA) Balance Sheet - Yahoo Finance,” finance.yahoo.com,
2021, https://finance.yahoo.com/quote/AC.PA/balance-sheet?p=AC.PA.
7
8
Marriott International, inc. Marriott International. (n.d.). Retrieved October 6, 2021
9
Business Wire, “Hyatt Reports Third-Quarter 2020 Results,” www.businesswire.com,
November 4, 2020, https://www.businesswire.com/news/home/20201104005618/en/Hyatt-
Reports-Third-Quarter-2020-Result.
10
11
Reuters Staffs, “Hotel Group Accor Checks in for Recovery after Smaller H1 Loss,” Reuters,
July 29, 2021, sec. Business News, https://www.reuters.com/article/us-accor-results-
idUSKBN2EZ0JG.
12
Ibid
7
increased in 2020 over the last three years13. The company had the highest current ratio margin,
which was 2.60. This higher current ratio margin indicates that Hyatt Hotels Company has a
reliable and adequate amount of existing assets to deal with short-term conventional financing
while maintaining everyday activities.
Quick ratio
The quick ratio is a measure of a corporation's capability of repaying its current obligations
deprived of having to vend its inventory14. A ratio of 1.0 or higher is considered healthy. Accor's
quick ratio improved from 2018 to 2019 but declined in 2020. In 2019, the ratio increased to
1.72; in 2020, it attained 1.2615. In 2018, the quick ratio for Accor was 1.2416. This means that
the business had $1.24 in quick assets for each dollar of current liabilities. Thus, the company
could pay its short-term obligations in 2018 with 1.24 times its available cash and cash
equivalents17. The increase in the quick ratio from 2018 to 2019 was due to the company's
acquisition of numerous hotels and the consequent enhancement in its financial performance18.
The decrease in the quick ratio in 2020 was because Accor purchased various hotels. The
acquisition added additional debt and liabilities to the corporation, which stalled its capability to
recompense its standing obligations19. The decline of quick from 2019 to 2020 also contributed
to the pandemic, which harshly impacted the hotel and hospitality.
Even though Accor's quick ratio dropped from 2019 to 2020, it is still doing better than
competitors Hyatt and Marriott. Thus, Accor is still better positioned to pay its short-term
obligations than its competitors20,21. If Accor's quick ratio falls below 1.0, the company needs to
take some actions to improve its financial performance. This can include selling off assets,
reducing expenses, or increasing revenues. To maintain a quick ratio above 1.0, Accor must
improve its financial performance every year22. This is not an easy task, but it is essential if the
13
14
15
16
17
Ibid
18
Accor, “The History of Accor,” Accor.com, 2019, https://group.accor.com/en/group/who-we-
are/our-history.
19
Ibid
20
21
Yahoo! Finance, “Marriott International (MAR) Stock Price, Quote, History & News - Yahoo
Finance,” finance.yahoo.com, September 21, 2021, https://finance.yahoo.com/quote/MAR/.
22
8
company wants to stay in good standing with its creditors.

Accounts receivable turnover
Accounts receivable turnover is a significant financial indicator for businesses to follow
to make well-versed strategic choices concerning operations and development. Operating profit,
for instance, can be impacted by changes in receivables23. When there are numerous receivables
may show that the corporation is not gathering payments swiftly enough and may encounter
liquidity problems. On the contrary, when there are too limited receivables may indicate that the
company is not selling products or services to its customers24. Accounts receivable turnover is
significant that firms can use to measure their success. Generally, it is a decent measure of a
firm's liquidity and capability to meet its short-term financial obligations.
Inventory turnover
It is the kind of inventory that is obtained, vended, and procured by the corporation. Due
to the vast nature of inventory turnover, there is a substantial variance between the turnover of
inventory that is acquired and the turnover of inventory that is offered25. Inventory turnover can
be a good sign that sales are up and inventory is restoring to normal. This shows that the demand
for the product or service is solid, and sales are recovering. Accor has been doing well with its
inventory turnover decreasing from 127.7 in 2018 to 102.3 in 2019; that turnover was a sign that
sales were improving, but it dropped to 55.5 in 202026. An inventory deterioration of this
magnitude is usually a sign of buyer's remorse. This may have contributed to the COVID-19
pandemic, which resulted in the company's decrease in sales27. The decrease in inventory
turnover of Accor Hotel, in comparison with 2020, is an indication that the corporation may have
some issues with its inventory.
Payable turnover
Even though Accor’s current payable period is controlled at 135 days at the end of 2020,
the ordinary payable turnover period was preserved between 192.19 and 209.24 days in 2018 and
2019, respectively28. Accor’s balance sheet shows that the two primary payables
are trade/accounts payables and other payables, consisting of 38.63% and 29.38% of the total
account payables29. Therefore, Accor can maximize its time to pay other payables and as well
extend its cash holding period. This will reduce the cash cycle and also uphold a talented
23
24
25
26
27
Ibid
28
29
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financial position to solve unexpected situations.
Long-term debts/owner's equity

Long-term debt/owner's equity refers to the variance between the asset's value and the
corporation's equity in the asset30. It is the interest remunerated on credit, contrasting to the
credit's principal. Long-term loans typically have an initial interest rate and a term31. The interest
rate is set at the time of the first payment. When a loan is paid off, the interest and principal are
paid with the money borrowed. It is vital to comprehend why long-term credits are significant.
An investment is a loan with a fixed interest rate32. The credit is refunded over a certain number
of years, and the interest and principal are paid with the money lent. Nevertheless, these loans
have fixed interest rates, and the interest rate is set at the time of the first payment.
Cash from operations
Cash from operations shows the sum of money a firm fetches from its continuing, consistent
business actions like an offering of services to the clients33. The cash from operations does not
incorporate investment or capital expenses and expense. It only concentrates only on
fundamental business actions. Cash flow from operating activities represents the cash inflow or
outflow from the multinational's operations toward its financial statements34. The corporation's
cash flow from operating activities is a function of its operating expenses, the quantity of cash
that exists for investment, and the right to use the income to cover the other things on the
statement.
The cash from the operation of Accor increased from 1255000 in 2018 to 2987000 in 2020.
This indicates that the corporation has continued to improve for the past three years since 201835.
Nevertheless, there is assurance that the growth rate of the cash from the operation would persist,
and thus the stockholders ought not to rely on the cash from their operation as a gauge of Accor's
prospective performance. Compared to other competitors in the industry, Marriot had a negative
cash flow from its operation, whereby it had a -2948000 in 202036 and Hytte had a cash flow
from operations of 1578000 in 202037. This indicates that Accor company performs better than
30
31
32
Ibid
33
Nelson Education, 2015.
34
35
36
37
10
its competitors. When Accor hotels corporation is struggling to compete in the market and seeing
their cash flow from operating activities going down, they need to increase operating profits and
increase their cash flow from the operating activities.
Profitability Assessment
Accor Marriot Hytta Hotels
2018 2019 2020 2018 2019 2020 2018 2019 2020
ROE 34.70% 6.65% - 1.06% 1.81 - 27.16 24.67 0.002
47.81 0.621 % % %
% %
ROA 17.29% 3.34% - 0.08% 0.051 - 12.8% 11.2% -
18.85% 0.011 109.5
% %
Profit 61.86% 11.6% - 17.7% 15.3% 13.8% 21.98 18.8% 0.48%
margin 122.64 %
%
Asset 0.28 0.29 0.15 0.88 0.84 0.43 0.58 0.62 0.23
turnover
Total 129170 139040 105460 236960 250510 24010 13450 17060 25630
assets/own 00 00 00 00 00 00 00 00 00
er's equity
Gross 6.5% 16.8% -138% 12.9% 9.5% 0.2% 23.1% 21.5% 40.2%
profit
margin
Operating 13.6% 15.8% 28.6 11.3% 8% 16% 7.7% 7.9% 29.6%
income
margin
Income 169500 140300 456000 367400 342200 14590 97900 94300 -1000
before tax 0 0 0 0 00 0 0
EPS -9.48 1.74 8.71 5.16 3.82 -0.81 6.68 7.21 -6.93
Source: Excel spreadsheet (Yahoo!, 2020; Yahoo!, 2021; Business Wire, 2020)
Return on Assets (ROA)
Return on Investment (ROI) is the financial return on an investment likened to the
venture cost38. It is not a direct return on the investment, but the return on the investment is
somewhat equated to the venture amount39. It is a ratio of the investment's net present value to
the net present value of the return. The net current worth of the investment is the asset's current
value after the investment has been remunerated40. The ROA of Accor indicates how the
corporation utilizes its assets resourcefully by quantifying the sum of money the investor and
creditors have placed on the firm41. In 2018, Accor had the greatest ROA of 17.29% but a drastic
38
39
Marshall Hargrave, “How to Use Return on Assets When Analyzing a Company,”
Investopedia, March 5, 2022, https://www.investopedia.com/terms/r/returnonassets.asp.
40
Ibid
41
11
decline of ROA in 2020, with the lowest negative ROA of -18.25%4243. Nevertheless, the other
two rival companies, Marriott and Hytta also had a ROA decline in 202044. Hence, for the
corporation to generate the greatest ROA, it ought to increase its total returns.
Return on Equity (ROE)
For any investment to be successful, the investor ought to pay a rate of return more
significant than those in the market45. ROE is a notion that is frequently used to illustrate the
valuation of all businesses based on their market value, which is the total market value of all the
stocks of businesses divided by the sum quantity of shares remaining46. It is the return a specific
investment is projected to offer the investor, less the risk of loss. The more the ROE is expected
to increase, the more successful the investment will be47. The Accor Hotels corporation displayed
a decline in ROE whereby it was 17.29% in 2018, decreased to 3.34%,and further sharply
decreased to -18.85% in 202048. The negative decline of Return on Equity indicates that Accor is
becoming less competent at generating profits and enhancing stockholder value. The ROE also
decreased for the two firms, Marriot and Hytta, which could translate to the industry being
unfavorable4950. Thus, for the firm to create value for its investors, Thus, for it must be able to
achieve higher returns than it has in the past. Accor has to increase its profitability; thus, this is
considered a primary objective for the firm.
Profit Margin
Profit margin refers to the amount of an organization profitability and it normally stated in
terms of percentage and gauges the amount of money the services or sales that an organization
will save from its incomes51. The trend in Accor’s profit margin decreases tremendously from

42
43
44
45
Jason Fernando, “Return on Equity (ROE),” Investopedia, June 27, 2022,
https://www.investopedia.com/terms/r/returnonequity.asp.
46
Ibid
47
48
49
50
51
12
61.86% in 2018 to 11.6% in 2019 and lastly to -122. 64% in 202052. This indicates that the
company is using more resources in settling their debts such that for it to continue with its
operations it needs to borrow more53. Similarly, the same trend is witnessed in its competitors
profit margin even though they do not go beyond the zero level of profit margin.
Assets turnover
The total asset turnover ratio demonstrates how efficiently Accor Company uses its total
assets.to increase income. A slight increase was reported from 2018 to 2019, from 0.28 to 0.29.
However, in 2020, it decreased to 0.1554. In the past three years, the value was less than that of
Marriott, and Marriott has the most turnover55. As a result, the Marriott Company provides Accor
with stiff competition among competitors56. Furthermore, the three companies operated on
average total asset turnover at comparable levels. The highest total asset ratio indicates that both
businesses used to maximize revenue from their assets for sustainability.
Total assets/owner's equity
Total assets represent all commodities an individual or a business owns after considering
all the liabilities and assets. The total assets for Accor Company increased from 2018 to 2019 but
decreased in 202057. This trend was not only witnessed in Accor but also in the financial
statements of its competitor Marriott. However, Hytta had a continuous growth in assets.
Gross profit margin
The gross profit margin allows managers in every company to see how much money is
left over after deducting COGS from the income. It also displays the percentage of a company's
revenue. Accor Company's gross profit margin significantly increased from 6.5% in 2018 to
16.8% in 201958. However, in 2020, Accor Company experienced a different case as its gross
profit margin decreased to a negative percentage which is (138%)59. As for Marriott, the trend
decreased from 12.9% in 2018 to 9.5% and 0.2% in 202060, but significantly lower than Hytta,
which has received 23.1%, 21.5%, and 40.2% consecutively over the last three years61.
52
53
54
55
Ibid
56
Ibid
57
58
Ibid
59
idUSKBN2EZ0JG.
60
61
13
Operating income
Operating income was the amount of finances one organization or industry earned before
expenditure and interest, divided by segment. The elementary constituents of operating income
encompass net proceeds, net wealth, and dutiable income62. Operating income is the summation
of net income parted by the number of personnel. To compute operating income, start with a base
of the company's net income63. Then add all the costs and interest expenses. Finally, to calculate
operating income, divide the net income by the number of employees64. The operating income of
Accor increased from 13.6% in 2018, then 15.8% in 2019 and 28.6% in 202065. The Marriot
operating income was 11.3 percent but declined to 8 percent and drastically increased to 16
percent in 2020. On the other hand, Hytta increased from 2018, which was 7.7 percent, to 29.6
percent in 202066.
Income before tax
This is the amount of money that a business organization or individual receives before it
is subjected to tax for deductions67. Accor began with a profit of around 169500 in 2018, but this
quickly reduced over the next two years. According to Accor's annual report, the business model
has improved since the company's inception in 201168. Since its beginning, gross revenue has
grown significantly. However, over the past three years, the system has dramatically changed.
Therefore, there is no guarantee that the previous growth rate will continue, and investors should
not rely on revenue as an indicator of Accor's future performance69. There is a risk that Accor
will not consistently generate enough total revenue to generate positive cash flow from
operations or profitability at any time. Because of its short operational history and volatile
nature, it is difficult to assess its current performance and prospects70. Accor's lack of operational
experience is the most critical indicator of the company's ability to generate net income.
According to Accor's income statement, operating expenses as a percentage of gross profit
decreased from 16.8% (Gross profit) in 2019 to (138%) in 202071. Such data confirms what
Accor stated in its annual report: Accor is constantly optimizing and improving its operations.
62
ALICIA TUOVILA, “Operating Income,” Investopedia, April 1, 2022,
https://www.investopedia.com/terms/o/operatingincome.asp#:~:text=Operating%20income
%E2%80%94also%20called%20income.
63
Ibid
64
Ibid
65
66
67
68
ibid
69
70
idUSKBN2EZ0JG.
71
Daft, Richard L. Organization theory and design. Cengage learning, 2015.
14
EPS
The EPS shows the amount of income a company receives from each share of stock. Accor
Company re-counted an increasing EPS from -9.48 in 2018 to 8.71 in 2020 which was the
highest throughout the three years as well as with its competitors72. The opposite trend was also
witnessed in Marriot. However, it was different when it came to Hytta Company as it had a
varying trend in its EPS, recording even negative values
Recommendations for Investors

After analyzing the ratios and financial statements of the companies, I have generated
commendations for investors with enough reasons as to why they should invest or not invest in
specific companies at the moment. Currently, Accor company's financial statement is not in a
good state73. The company is analyzing more leveraging due to the high debt rates. This puts the
company in a risky financial state hence unsuitable for investors as they are likely to pay a lot of
interest in an attempt to close up the high operational costs that Accor is currently experiencing74.
As per the 2020 annual report, Accor's company investment was nonviable due to the significant
losses that the company went through throughout the year. In 2020 and 2021, the company's
inclusive fiscal state, especially its profitably, significantly reduced75.
Hyatt Hotel Corporation is not different from Accor in terms of its financial well-being.
Throughout the latest annual reports of the hotel and the ratios, it is evident that the company has
no signs of improving its financial state. Hyatt's liquidity state is enough evidence to show the
economic struggles it has been going through over the last three years76. The company's running
of assets is another strong evidence77. Although there was a significant improvement in the
running of support in 2019, the last two years have shown the failure of the company to exploit
its capability to organize its assets78. The company's receivable revenue, account, fixed resources,
and total revenue have reflected negative values over the last three years. The company is also
facing a barrier as it cannot secure long-term loans due to the unstable financial margins that
have been continuous for some years79. For all these reasons, finding or convincing investors to
put their financial support into such a company becomes challenging.
Marriot International, unlike Accor and Hyatt companies, is showing significant
improvements. However, it has undergone numerous challenges, especially in the Middle East,
72
73
Ibid
74
Salama Alkhyeli et al., “Financial Analysis and Performance Evaluation of Pfizer,” SSRN
Electronic Journal, 2021, https://doi.org/10.2139/ssrn.3896385.
75
Ibid
76
77
Jan Horas Veryady Purba and Muhammad Rayno Septian, “Analysis of Short Term Financial
Performance: A Case Study of an Energy Service Provider,” Journal of Accounting Research,
Organization and Economics 2, no. 2 (August 31, 2019): 113–22,
https://doi.org/10.24815/jaroe.v2i2.14632.
78
Ibid
79
Ibid
15
where the company faces adverse terrorization from aggressive mental attacks on its premises80.
In response to these threats, there has been a significant reduction in the number of visitors
moving into the region, creating more risks. The company experienced one of its worst financial
breakdowns in 2020, and it learned to utilize the available resources onwards, leading to the
generation of reasonable profits81. This was a game-changer for the company; with more effort, it
could improve its income. The company's net profit margin has risen above 1.4%, portraying an
excellent signal to all investors82. The company's equity returns are another achievement. It
stands at 2.7%, a higher rate than average83.
I recommend investors put their finances into Marriot International from the three
companies. Unlike the other two companies, the company shows significant financial
advancements and a high generation of returns. No one would want to put their money into a
company that will give nearly no returns, and therefore Marriot is the best company for
investing.
Marketing Analysis
Industry Analysis
The hotel industry is a large and growing industry. There are many different types of
hotels, from small, independently-owned businesses to large international chains. Accor hotel is
a large multinational chain with hotels in many other countries. The size of the hotel industry is
challenging to estimate, as there are many kinds of hotels and businesses within the industry.
However, according to the American Hotel & Lodging Association, the total revenue of the US
hotel industry was $170 billion in 2017. This is a large and growing market. Accor hotels have a
significant market share in the hotel industry, with over 4,000 hotels in 100 countries. However,
there is still room for growth84. In the US, Accor hotels have a market share of around 5%. This
leaves 95% of the market to be captured85. Therefore, the growth prospect for the hotel industry
is good, and as the market increases, Accor hotels' market share is likely to increase. Longer
term, Accor hotels can expand its markets by opening more hotels in different countries. It can
also enter new markets, such as the vacation rental market86. Additionally, Accor hotels can
expand its market share in the US by opening more hotels and increasing its marketing efforts.
80
Asdullah, M. A., and Z. U. Rehman. "A comparative study on financial performance of hotel
industry in Pakistan (Sarena hotel & Marriott hotel)." Journal of Tourism, Hospitality and
Sports 8, no. 2015 (2015): 42-54.
81
82
Ibid
83
Ibid
84
Damnjanović, V., Lončarić, D., & Dlačić, J. “TEACHING CASE STUDY: Digital marketing
strategy of Accor Hotels: shaping the future of hospitality”. Tourism and Hospitality
Management, 26(1), 233–244.
85
Tawfik Jelassi and Francisco J. Martínez-López, “AccorHotels’ Digital Transformation: A
Strategic Response to Hospitality Disruptor Airbnb,” in Strategies for E-Business (Springer,
2020), 665–89.
86
KHAN, Y. H., HAKEEM, S. M. A., & NAUMOV, N. “The use of branding and market
segmentation in hotel marketing: A Conceptual Review”. Journal of Tourism Intelligence and
Smartness, 1(2), 12–23.
16
Target Market
The Accor hotels group has a wide range of hotels catering to different market segments,
from luxury to budget. The group's target markets include business and leisure travelers,
families, and groups. Business travelers account for a significant portion of Accor's business, and
the group has a strong presence in key business markets such as Paris, London, and New York.
Leisure travelers are also a significant target market, with the group's resorts and vacation
properties catering to this segment87. Families are another key target market, and Accor's hotels
offer a variety of amenities and services to appeal to this group. Finally, groups are also a
significant target market, and Accor has a dedicated sales team to cater to the needs of this
segment.
Customer Profile
Accor hotels are used by people who are looking for a place to stay while they are
traveling. They may be looking for a place to stay for business or pleasure. They may be looking
for a place to stay that is close to their destination, or they may be looking for a place to stay that
is comfortable and affordable88. To sum up, Accor hotels are located in major cities worldwide to
attract a diverse range of customers 89. As a result, hotels are typically used by business travelers
during the week and leisure travelers on the weekends. Furthermore, these customers want a
clean hotel with all the amenities they need, such as a swimming pool, a gym, and a restaurant.
Therefore, they are willing to pay a little bit more for a hotel that meets their standards.
Major Competitors and Participants
As the hospitality industry has become more globalized, the number of competitors for
Accor hotels has increased. Accor hotels' main competitors include Marriott, Hilton, and Hyatt.
Marriott and Hilton are both vital in the United States, while Accor is more substantial in
Europe. Hyatt is a newer competitor but is multiplying. However, Marriott, Hilton, and Hyatt
have more robust brand recognition globally, and Marriott and Hilton, in particular, have more
diverse product offerings90. Accor is also competing with several smaller regional hotel chains.
Precisely, these companies are all much larger than Accor hotels and more profitable. Accor
hotels do have some competitive advantages, though91. For example, Accor hotels are the largest
hotel operator in Europe and have a strong presence in emerging markets.
Accor hotels have a robust loyalty program and are known for its high-quality customer
service. Also, Accor hotels have a competitive advantage in its pricing and international reach.
As a result, the market for hotel accommodations is very competitive92. The hotel industry is very
Daft, R. L., & Armstrong, A. “Organization theory and design (Third Canadian b.)”. Toronto:
87
Nelson.
88
Syed Ali Raza Hamid and Muhammad Kamran Naqi Khan, “Value Co-Creation as a Strategic
Tool of Social Marketing: Analysis of a Social Service Branding Process in Developing
Economy,” Is Ahlakı Dergisi 12, no. 2 (2019): 155–76.
89
Damnjanović, V., Lončarić, D., & Dlačić, J. “Digital marketing strategy of Accor Hotels:
shaping the future of hospitality”. Tourism and Hospitality Management, 26(1), 233-244.
90
KHAN, Y. H., HAKEEM, S. M. A., & NAUMOV, N. “The use of branding and market
segmentation in hotel marketing: A Conceptual Review”. 12–23
91
Jelassi and Martínez-López, “AccorHotels’ Digital Transformation.”
92
João Henrique de Paiva Costa and Yákara Vasconcelos Pereira, “The Dynamic Capabilities of
17
competitive, but there are barriers to entry, such as the need for a large amount of capital to build
a hotel. The barriers to entry into the hotel industry are relatively high, as making a hotel requires
significant capital investment93. Accor hotels have a market share of approximately 4 percent.
Marriott, Hilton, and Hyatt all have significantly larger market shares. However, Accor hotels
are the fourth largest hotel operator globally, behind Marriott, Hilton, and Wyndham.
Market Segmentation
The target customer for Accor hotels is business and leisure travelers. Business travelers
are primarily male and travel for work purposes, while leisure travelers are mostly female and
travel for leisure purposes. The typical customer is between the ages of 25 and 54, has a college
education, and has an annual income of $50,000 or more94. In addition, the customer is most
likely to be married and has children95. Accor hotels are located in major cities around the world.
The hotel's location affects the target segment because business and leisure travelers are likelier
to stay in a hotel in a town they visit for work or pleasure96. The businesses that purchase
products from Accor hotels are travel agencies, companies that host events, and businesses that
book hotel rooms for their employees. These businesses have a sales volume of $1 million or
more and have 100 or more employees.
Projected Market Growth and Market Share Objectives
The social, geographic, and demographic trends that support the market forecasts for Accor
hotels are as follows:
i. Social: The increased travel and tourism trends are expected to continue in the coming
years, benefiting hotel companies like Accor97. Additionally, the trend of using social
media and online reviews to research and book travel accommodations is expected to
grow, giving Accor a more extensive potential customer base.
ii. ii. Geographic: Accor hotels are in many different regions worldwide, giving the
company a broad customer base98 Additionally, growth in emerging markets like Asia
and Africa is expected to continue, providing Accor with expansion opportunities.
iii. Demographic: The trend of an aging population is expected to continue, and this
demographic is typically more likely to travel than younger people99. Additionally, the
movement of people having more disposable income is expected to grow, providing
Accor with customers who are willing to spend more on travel accommodations.
AccorHotels in Brazil,” Journal of Hospitality and Tourism Insights, 2019.

93
Damnjanović, V., Lončarić, D., & Dlačić, J. “Digital marketing strategy of Accor Hotels:
shaping the future of hospitality”. 233-244.
94
Accor. The history of Accor.
95
Denis S. Ushakov et al., “Organization of Network Basis for Transnational Tourism Activity,”
2021.
96
Ibid
97
Ibid
98
Damnjanović, V., Lončarić, D., & Dlačić, J. “ Digital marketing strategy of Accor Hotels:
Shaping the future of hospitality”.233–244.
99
18
Product and Service Offering

Accor hotels offer comfortable and convenient accommodations for business and leisure
travelers. This includes hotel rooms, apartments, and other places people can stay. The needs that
these service addresses are the need for a place to stay and the need for a place to sleep.
Additionally, the rooms are of different classes with different budgets100 . Accor hotels are
located in major cities and tourist destinations worldwide, and they offer a variety of room types
and amenities to suit their guests' needs101. They also have a loyalty program, Le Club
Accorhotels, where members can earn points to redeem for free stays, upgrades, and other
benefits.
Product and Service Uniqueness
Accor hotels' unique features are how they are delivered, priced, or packaged. It is a
commodity, but it can be differentiated by how it is delivered, priced, or packaged. To succeed,
Accor hotels must provide their prospective customers with an apparent reason to buy their
product or service over that of their competitors102. Being different from their competitor is
essential, but this difference must provide a tangible benefit to the buyer. Accor hotels have a
proprietary advantage that can be clearly stated. There is a quantifiable benefit that can be
associated with the product. It takes a relatively short time for the product to pay for itself.
Product and Service Descriptions
Accor hotels offer a wide range of products and services that are designed to meet the needs
of business and leisure travelers. Some of the benefits of Accor hotels include: -Flexible booking
options that allow travelers to book rooms for short or long stays;
i. A variety of room types to choose from, including suites, deluxe rooms, and standard
rooms103.
104
ii. On-site restaurants and bars offer a variety of dining options105
100
Ibid
101
Alastair M. Morrison, Hospitality and Travel Marketing (Taylor & Francis, 2022).
102
Ibid
103
Ibid
104
Google. (n.d.). Google search. Retrieved November 14, 2022,
105
19
106
iii. Fitness centres and spas offer a place to relax and rejuvenate 107.
108
iv. Business centres that offer a place to work and hold meetings109.
110
v. Concierge services that can help with making travel arrangements and booking activities
111
.
106
Google.(n.d). Google Search. Retrieved November 4, 2022, from
107
108
Google.(n.d). Google Search. Retrieved November 4, 2022
109
110
111
20
112
Competitive Comparisons
Marriott International Hilton Worldwide
Accor Hotels
Inc Holdings Inc
Product Quality High, Durable High quality High quality
Pricing for products

and services at Accor
Prices for these
hotels will vary Rooms cost $89 per
products and services
depending on the night in the USA and
Price vary depending on the
hotel's location, €149 per night in
location, time of year,
product or service Europe114.
and demand115.
type, and time of
year113.
Favourable- The
company offers a wide Positive- They are
range of quality known for providing Positive-They is a
products and services high-quality products well-known and
116
. However, there and services117.They respected company,
Image
have been some issues have a strong and their products and
recently, such as the reputation for being a services are high
data breach in 2018, reliable and quality.
which may negatively trustworthy company.
impact the brand.
112
113
114
Marriott International, Inc. “ Marriott International”.
115
Guanglei Zhou, Bingwei Chen, and Yuxuan Wu, “Managerial Overconfidence, Research and
Development, and Earnings Management: Perspective from Capitalization and Expense,”
Research and Development, and Earnings Management: Perspective from Capitalization and
Expense (May 30, 2020), 2020.
116
117
Marriott International, Inc. “ Marriott International”.
21
Business travellers, as Business and leisure

well as leisure travellers who are
travellers belonging to looking for high-
Target user Business travellers
the luxury, upscale, quality
mid-market, and accommodations at
economy segments118 reasonable prices
Online- website
Offline- travel agents
or through the Accor
Hotels call centre. Online channels, Travel agents, global
while others may be distribution systems,
Distribution Third-party channels- distributed through direct online and voice
online travel agencies, brick-and-mortar reservations, and
metasearch engines, locations. group sales
and other websites
that offer Accor
Hotels products and
services119.
Accor Hotels warrants The company warrants Hilton Worldwide
that the products and that its products and Holdings Inc. offers a
services provided will services meet the limited warranty on its
be free from defects usual standards and products and services.
and meet the any expressed This limited warranty
specifications outlined warranty they make covers materials and
in the agreement about specific workmanship defects
between the parties120. products and services. for one year from the
Accor Hotels further If they don't, the date of purchase123.
Warranty warrants that it has the This limited warranty
company will either
right to provide the fix the problem or does not cover
products and services provide one with a damage caused by
to the customer prorated refund122. abuse, misuse,
following the deal121. This is its sole accidents, or normal
This warranty is warranty and is wear and tear. Hilton
instead of all other expressed or implied Worldwide Holdings
warranties, express or instead of any other Inc. will repair or
implied, including, but warranty. replace any defective
not limited to, the product or service free
118
119
Ibid
120
Ushakov et al., “Organization of Network Basis for Transnational Tourism Activity.”
121
Ibid
122
Marriott International, Inc. “Marriott International”.
123
Damnjanović, V., Lončarić, D., & Dlačić, J.“Digital marketing strategy of Accor Hotels:
shaping the future of hospitality”. 233-244.
22
implied warranties of
merchantability and
of charge124.
fitness for a particular
purpose.
The promotion of
products and services
for Accor hotels will
vary depending on the
specific products and
services being offered
and the target market
for those products and
services. However,
some common
promotional strategies Through advertising,
Through advertising,
that could be used for public relations, direct
Promotion public relations, and
Accor hotels include marketing, and social
direct marketing.
advertising in relevant media125.
media (such as travel
magazines or
websites), using social
media to reach
potential customers,
and partnering with
other businesses in the
travel industry to
cross-promote
products and services.
Research and Development

Accor hotels R&D process: The first step in the Accor hotels R&D process is to identify
a need or opportunity for a new product or service. This can come from internal sources, such as
customer feedback or market research, or external sources, such as the latest industry trends.
Once a need or opportunity is identified, the next step is to design the new product or service.
This includes developing specifications, drawings, or prototypes. Once the design is complete,
the next step is to test the product or service126. This can be done through laboratory, field, or
customer beta testing. After the product or service has been tested, commercializing it is next.
This includes mass production, marketing, and sales.
However, the company has been investing heavily in innovation in recent years. For
124
Zhou, Chen, and Wu, “Managerial Overconfidence, Research and Development, and Earnings
Management.”
125
Marriott International, Inc. “Marriott International”.
126
Damnjanović, V., Lončarić, D., & Dlačić, J.“Digital marketing strategy of Accor Hotels:
shaping the future of hospitality”.233-244.
23
example, in 2018, Accor hotels launched an innovation lab called the AccorHotels Arena. The
lab is designed to incubate and test new ideas and technologies that can be implemented across
the company's vast portfolio of hotels. In 2019, Accor hotels also launched a new mobile app
called Accor Live Limitless, which allows guests to book rooms, access hotel services, and earn
rewards points all in one place127. These investments suggest that Accor hotels are committed to
innovating and improving the guest experience.
Some potential research and development priorities for Accor hotels could include the following:
i. It is developing new hotel room designs that are more comfortable and stylish for guests
while also being more efficient in cleaning and maintaining for staff.
ii. It enhances the guest experience through technology, such as developing apps that make
booking a room and check-in accessible or providing in-room tablets with information
about the hotel and local area128.
iii. It is conducting market research to understand the needs better. It wants guests so Accor
hotels can continue providing an excellent experience that meets or exceeds customer
expectations.
The business does require substantial R&D to be successful. Accor hotels invest a lot in
R&D to create new products and services and improve the existing ones. Some key milestones of
the company's R&D activities are Prototypes of new products and services, lab results, and
product testing results129. However, the company plans to continue investing in R&D to maintain
its leading position in the hospitality industry.
Patents and Trademarks
There are a few things to consider when discussing patents and trademarks in Accor
hotels. First, it is essential to understand what a patent is and what it covers. A patent is a legal
document that gives an inventor the exclusive right to make, use, and sell an invention for a
certain period. The government grants this right, usually valid for 20 years. A patent covers the
invention itself, not the idea behind it130. This means that someone else can patent a similar
invention if it differs from the already patented one. Trademarks, however, are used to protect
brands and logos. A trademark is a sign that distinguishes the goods or services of one company
from those of another. A trademark can be a word, phrase, symbol, or design. It can also be a
combination of these elements. Trademarks are used to protect the investment that a company
has made in its brand. They also prevent other companies from using a similar brand or logo,
which could confuse consumers.
Regarding patents and trademarks, Accor hotels do not have patents or trademarks issued
for the company's products. However, they have a few things to consider. First, they need to
make sure that a patent covers their inventions. This will give them the exclusive right to make,
use, and sell the invention131. Second, they must ensure that a trademark protects their logo and
brand. This will prevent other companies from using a similar logo or brand and confuse
127
128
Ibid
129
Ibid
130
Zhou, Chen, and Wu, “Managerial Overconfidence, Research and Development, and Earnings
Management.”
131
Ushakov et al., “Organization of Network Basis for Transnational Tourism Activity.”
24
consumers. However, the company has a full assignment of all the patent rights and has entered
into several licensing agreements with other companies to use it.
Recommendations to the Company

When targeting consumers, Accor hotels need to consider potential customers'
demographics. This would include age, income, location, and interests. Accor hotels need to
tailor its marketing efforts to appeal to these demographics. When targeting businesses, Accor
hotels would need to consider the type of businesses that would be interested in their services.
This would include factors such as size, industry, and location. Accor hotels need to tailor its
marketing efforts to appeal to these businesses.
Conclusion
Financial Analysis
Although Accor's financial state is not one of the best at the moment, the company is one
of the leading in Europe with one of the best economic situations. Several factors have
contributed to the company's financial instability, Covid-19 being one of the sole reasons in the
past three years. as a result of the Covid-19 measures, the company has undergone one of the
worst profit and financial well-being declines. Accor should adopt operative approaches to
conquer challenges in the adverse hospitality market and the financial crisis caused by numerous
factors. Through the use of technology, the company can be able to utilize every available
opportunity to maximize its returns. Incorporating online services such as check-ins and check-
outs will reduce direct contact between the company's workers and guests. This will be crucial in
reducing risks of contracting the Covid-19 virus from workers to guests and vice versa. The
effects of Covid-19 have not left out Hyatt Hotels Corporation. Therefore, the company should
protect its workers and guests from getting infected, like Marriot International. Hyatt is setting
the pace, the company is continuously expanding its branches even in these hard Covid-19 times,
and after all the losses, the company is providing a promising future for its revenue generation.
For Marriot International, investors will have the best profitable opportunities soon. The
company has dealt with the Covid-19 situation with the proper strategies and has been able to
generate more and more revenue.
The company still has many opportunities yet to be exploited by willing investors that
will even lead to further revenue generation. The increase in the steadiness of the liquidity ratios
over the last three years is a good signal towards more significant advancements in the future.
This indicates the company's ready finances that could be used to adventure into new markets,
and therefore it is not wholly dependable on outside investors. Also, if the company is
necessitated to pay debts, its current liquidity ratio allows it to do this easily. With the current
standings of the net profit margin and equity return, Marriot company can cover any extreme
financial situation putting it in a safer state. Therefore, every company should strive to gain
financial stability to sustain adverse waves in the market full of opportunities, although
accompanied by numerous challenges. The best company gets to stand through all the challenges
exposed to it and continue generating more and more returns.
Marketing Analysis
Accor hotels have a significant market share in the hotel industry, with over 4,000 hotels
in 100 countries. The group's target markets include business and leisure travelers, families, and
groups. It can also enter new markets, such as the vacation rental market. Accor hotels are
25
located in major cities worldwide to attract diverse customers. The hotel industry is very
competitive, but there are barriers to entry, such as the need for capital. Businesses that purchase
products from Accor hotels are travel agencies, companies that host events, and businesses that
book hotel rooms for their employees. Accor hotels offer a wide range of products and services
that are designed to meet the needs of business and leisure travelers. Some of the benefits of
Accor hotels include flexible booking options, a variety of room types, concierge services, and
on-site restaurants and bars. The company warrants that its products and services meet the usual
standards. If they don't, the company will either fix the problem or provide one with a prorated
refund.
26
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29
Appendix
Accor 2018 2019 2020
Company
Cash
Assessment
Ratio Formula
Working (Current assets - ((3,779,000 - ((5,035,000 - ((3,684,000 -
capital as a current 3,046,000)/3,610, 2,925,000)/4,04 2,930,000)/1,621
percentage liabilities)/gross 000)*100% = 9,000)*100% = ,000)*100% =
sale*100% 20.30% 52.11% 46.51%
Current Ratio Current 3,779,000/3,046,0 5,035,000/2,925 3,684,000/2,930,
Assets/Current 00 = 1.24 ,000 = 1.72 000 = 1.26
Liabilities
Quick (CA-Inventory)/CL (3779000 - (5035000 - (3684000 -
ratio/Acid test 15000)/3046000 = 20000)/2925000 21000)/2930000
1.24 = 1.71 = 1.25
Accounts (Revenues/Accounts 2535000/433500 43345000/6946 1520000/500000
receivable receivables) = 5.85 300 = 6.24 = 3.04
collection
period
Inventory Cost of goods 1915000/15000 = 2046000/20000 1165000/21000
turnover sold/inventory 127.7 = 102.3 = 55.5
Long-term Total liabilities 6481000 6925000 6388000
debts/owner's
equity
Cash from change in working 733000 + 2110000 + 754000 +
operation capital + net income (1988000) = 464000 = 2233000
(1255000) 2574000 =2987000
Payables cost of 680737/3542 = 1408604/6732 = 47790/354 = 135
turnover revenues/accounts 192.19 209.24
payable
Profitability
Assessment
ROE Net income/ 2233000/6436000 464000/697900 1988000/415800
shareholders' equity = 34.70% 0 = 6.65% 0 = (47.81%)
ROA Net income/total 2233000/1291700 464000/139040 1988000/105460
assets*100% 0 = 17.29% 0 = 3.34% 00 = (18.85%)
Profit margin Total revenue- 3610000 - 4049000 - 1621000 -
COGS)/total 1915000/3610000 2046000/40490 1165000 -
revenue = 61.86% 00 = 11.46% 456000 =
(122.64%)
Assets Net sales/ total 3610000/1291700 4049000/13904 1621000/105460
turnover assets 0 = 0.28 000 = 0.29 00 = 0.15
Total current Assets + 12917000 13904000 10546000
assets/Owner' long-term assets
30
s equity
Gross profit (Gross 236000/3610000) 680000/404900 (2237000)/
margin profit/Sales)100 100% = 6.5% 0 = 16.8% 1621000))*100 =
(138%)
Operating Operating 491000/3610000 641000/404900 463000/1621000
income income/net sales = 13.6% 0 = 15.8% = 28.6%
margin revenue
Income Sales - COGS 3610000 - 4049000 - 1621000 -
before tax 1915000 = 2046000 = 1165000 -
1695000 1403000 456000
EPS Net income - 2233000 - 464000 - 1988000 -
preferred 27040000)/28849 24100)/23400 = 1164000)/94604
shares/outstanding 0 = -9.48 1.74 = 8.71
shares
Marriott 2018 2019 2020
International
Cash
Assessment
Ratio Formula
Working (Current assets - ((2706000 - ((3127000 - (2825000 -
capital as a current 6437000)/207580 6677000)/20972 5752000)/10571
percentage liabilities)/gross 00)*100% = 000)*100% = 000)*100% =
sale*100% (17.97%) (16.93%) (27.69%)
Current Ratio Current 2706000/6437000 3127000/66770 2825000/575200
Assets/Current = 0.457 00 = 0.468 0 = 0.491
Liabilities
Quick (CA-Inventory)/CL 2706000- 3127000 - 2825000 -
ratio/Acid test 249000)/6437,000 252000)/ 172000)/575200
= 0.382 6677000 = 0 = 0.461
0.431
Accounts (Accounts 21074000/512749 21197000/5578 11448000/32896
receivable receivable/Credit 0 = 4.11 160 = 3.8 55 = 3.48
collection sales)
period
Inventory Cost of goods 17084000/249000 17755000/2520 9112000/172000
turnover sold/inventory = 68.6 00 = 70.5 = 53
debts/owner's
equity
Cash from change in working (3731000 + (3550000) + (2927000) +
operation capital + net income 1907000 = 1273000 = (21000) =
(1824000) (2277000) (2948000)
Payables cost of 17084/767 = 17755/720 = 19370.88/684 =
turnover revenues/accounts 22.27 24.66 28.32
payable
Profitability
31
Assessment
ROE Net income/ 1907000/2225000 1273000/70300
shareholders' equity = 1.06 0 = 1.81 (267000)/430000
= (0.621)
ROA Net income/total 1907000/2369600 1273000/25051 (267000)/
assets*100% 0*100% = 0.080 000 = 0.051 24701000 =
(0.011)
COGS)/total 17084000/207580 17755000/2097 9112000/105710
revenue 00 = 17.7% 2000 = 15.3% 00 = 13.8%
turnover assets 00 = 0.88 1000 = 0.84 000 = 0.43
s equity
Gross profit (Gross 2685000/2075800 1993000/20972 (21000)/
margin profit/Sales)100 0*100 = 12.9% 000*100 = 9.5% 10571000)*100
= 0.2%
Operating Operating 2357000/2075800 1685000/20972 1639000/105710
income income/net sales 0 = 11.3% 000 = 8% 00 = 16%
margin revenue
before tax 17084000 = 17755000 = 9112000 =
3674000 3422000 1459000
EPS Net income - 1907000 - 1273000 - (267000) -
preferred 949000)/185659 = 657000)/150000 1890000)/26629
shares/outstanding 5.16 = 3.82 63 = (0.81)
shares
Hytta Hotels 2018 2019 2020
Cash
Assessment
Ratio Formula
Working (Current assets - ((1345000 - (1706000 - (2563000 -
capital as a current 1061000)/445400 1086000)/50200 984000)/206600
percentage liabilities)/gross 0)*100% = 6.4% 00)*100% = 0)*100% =
sale*100% 12.4% 76.4%
Current Ratio Current 1345000/ 1706000 2563000/ 984000
Assets/Current 1061000 = 1.27 /1086000 = 1.57 = 2.60
Liabilities
Quick (CA-Inventory)/CL 1345000 - 1706000 - 2563000 -
ratio/Acid test 14000)/1061000 = 12000)/ 9000)/984000 =
1.27 1086000 = 1.57 2.6
Accounts (Accounts 8213000/716660 893000/75480 1207000
receivable receivable/Credit = 11.46 = 11.83 /215500 = 5.6
collection sales)
period
32
Inventory Cost of goods 3475000/14000 = 4077000/12000 2067000/9000 =

turnover sold/inventory 248.2 =339.8 229.7
debts/owner's
equity
Cash from change in working 284000 + 979000 620000 + 1579000 +
operation capital + net income = 1263000 943000 = (1000) =
1563000 1578000
Payables cost of 199743/426 = 487924 / 784 = 354876/658=
turnover revenues/accounts 468.88 622.35 539.33
payable
Profitability
Assessment
ROE Net income/ 979000/3677000 943000/396700 (1000)/3214000
shareholders' equity = 27.16% 0 = 24.67% =0.002%
ROA Net income/total 979000/1061000 943000/170600 (1000)/2563000
assets*100% = 12.8% 0 = 11.2% = (109.5%)
COGS)/total 3475000)/445400 4077000)/50200 2067000)/20660
revenue 0 = 21.98% 00 = 18.78% 00 = 0.48%
turnover assets = 0.58 00 = 0.62 0 = 0.23
s equity
Gross profit (Gross 1027000/4454000 1081000/50200 (832000)/
margin profit/Sales)100 )*100 = 23.1% 00 = 21.5% 2066000 =
40.2%
Operating Operating 341000/4454000 396000/502000 (611000)/
income income/net sales = 7.7% 0= 7.9% 2066000 =
margin revenue 29.6%
before tax 3475000 = 4077000 = 2067000 =
979000 943000 (1000)
EPS Net income - 979000 - 943000 - (1000) -
preferred 30000)/142066 = 23000)/127601 6548000)/94502
shares/outstanding 6.68 = 7.21 2 = (6.93)
shares

Accor Financial Analysis Reveals Strengths and Opportunities

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Accor Financial Analysis Reveals Strengths and Opportunities

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Organizational Analysis of Accor

Trinity Western University

By Mengfei Wang (Fred)

Accor Financial Analysis

company wants to stay in good standing with its creditors.

financial position to solve unexpected situations.

Long-term debts/owner's equity

Nelson Education, 2015

Recommendations for Investors

AccorHotels in Brazil,” Journal of Hospitality and Tourism Insights, 2019.

Product and Service Offering

ii. On-site restaurants and bars offer a variety of dining options105

Product Quality High, Durable High quality High quality

Pricing for products

Business travellers, as Business and leisure

Research and Development

Recommendations to the Company

Google.(n.d). Google Search. Retrieved November 4, 2022, from

Inventory Cost of goods 3475000/14000 = 4077000/12000 2067000/9000 =

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