BERLIN — Accor’s Chairman and CEO Sébastien Bazin is on a mission to bring more passion to the hotel industry, though a combination of his firm’s loyalty program All; its many brands; and the knowledge and joie de vivre of staff members.

Speaking with Hotel News Now during the International Hotel Investment Forum, Bazin said one initiative in Eastern Europe has proven successful and might be scaled up.

“We gave staff members a little money to redesign a room, and they were free also to use their own belongings. They put their names above the doors, and they gained great self-esteem and pride in that, and the guests loved it, too,” he said, adding that staff are a huge untapped resource to allow guests to learn about a destination.

"Some might say this is gimmicky, but it was a huge success,” he added.

The importance of individuality extends to hotel deals too, Bazin said. While some other hotel companies have concentrated on conversions during the pandemic, Bazin said he has concerns about the industry losing individuality.

“Yes, conversions are fueling the engine. Independent owners got a great deal of help, which has masked ... the economic reality, but I have told my teams not to take advantage," he said.

“Allow them to remain independent. We need independent businesses as without them it is harder for a place to retain its differences and characteristics. I have told my teams not to be vultures,” he added.

He said some markets in Europe, like Italy, could remain very fragmented in terms of hotel brand affiliation as they have been for hundreds of years, and they could be better off for it.

That doesn't mean Accor hasn't seen solid rooms growth, though. Bazin noted 50% of all signings in Northern Europe during the pandemic have been with Accor, and the company launched a new conversion brand during IHIF called Emblems, the company's 42nd brand.

Luxury and boutique hotels are another focal point for Bazin. These hotels are now wrapped up within its division Ennismore, formed in November 2020, following buys of Ennismore, which owned The Hoxton and Gleneagles brands, SBE and other hotel brands and firms.

He believes that luxury division will soon account for 30% of the company's overall revenue.

“We’ll have 99 hotels [within Ennismore] by the end of the year, and 120 more signed in the next 18 months. There are another 80 in negotiation between 18 and 36 months, and there are 150 standalone bars and restaurants,” he said.

The Rixos and Orient Express brands also excite the Accor CEO.

Accor in 2017 acquired a stake in the all-inclusive resort company Rixos, and in the luxury train-travel company Orient Express.

“In terms of scalability, Rixos is a phenomenal success. There are now 25, and 25 more will be signed or open in the next 18 months,” he said, adding 80% of its guests, many of whom are Russian, come via six tourism agencies.

Some of the brand’s villas sell for 4,000 euros ($4,750) a night, he added.

He said the brand dearest to him is Orient Express; the iconic train-travel brand's first hotel properties are set for Rome, on the fabled Piazza de la Minerva, and Istanbul.

“It is the closest to my heart as I bought it. It is unique, and when we asked a broad set of people what the brand meant to them the sentiment was vast,” he said.

Bazin said he thought the industry would be blessed for at least the next 50 years.

“But it will be different. My 40% leisure share will improve dramatically, with longer lengths of stay and more connection with the environment. I have been looking for this over the last five years, and now it will come,” he said.

He said he was more worried about the 20% drop in international business travel he predicts, which he added might be as deep as a 25% dip.

“I hope I am wrong. Pretty much for the last 15 years we’ve concentrated on 95% on people coming internationally or from the next town for business travel,” he said.

He said he does not foresee a full-scale return to the office, since many people working from home will not want to.

“We have to reconfigure [hotel] spaces for them, and one upside is that [online travel agencies] will not be involved. The new requirements are fun, discovery and meeting people,” Bazin said.

He added people have spent the pandemic reflecting that they do not want to think about or do things the same way they did before

“It starts with my stomach, my guts, then it goes to my heart, and then the brain only tells you what is the timing of each decision,” he said.

At a keynote session during IHIF, Bazin said the one overriding lesson he learned during the pandemic was humility.

“It’s been tough. For the first time in my life, I have had to accept I am blind. You know you have to make decisions, and you do not know if the government has made the right decisions. You are not in control. You are no longer in charge of much,” he said.

“When you do not know much, that is when the most difficult decisions had to be made,” he said.

March 23, 2020, was one such day, the very worst day, he said.

“I had two hours to make a decision to send an email to 290,000 people that from 1 April we had to close shop, and it was terribly unfair, especially to our large staffs in Africa, South America, Southeast Asia, where government is not strong in welfare, where after only four days they suddenly have no salary. And that was my fault,” he said. “I sent [the email] at 1 p.m., and I had a board meeting at 5 p.m. to vote on the dividend that had already been relayed to the market. I told the board, of which I am chairman, that ‘we have to suspend it,’ and pleaded with them to give me 25% of that 280 million euros dividend to form a fund, Heartist, to help those employees in need,” he said.

He added so far 110,000 people have asked for subsidies, at around 400 euros per person.

“For some who earned 4 euros a day, it has changed everything,” he said.

He said there have some silver linings coming out of the pandemic.

“I should never say it, but I have enjoyed [this period]. That moment in which you have time to reflect, to be generous, to be humble, to get closer to local managers. I now know their names, and I certainly know their abilities. My job is the strategy, the vision, the balance sheet, but I have learned to give [the managers] the keys,” he said.

The 2,000 people in Accor’s Paris headquarters were whittled down to 12 during the darkest days, with approximately 1,000 working from home or on furlough.

“Most are back now, and there is no shortage of staff," he said. "They are back on 100% salary, but some who put money aside during the pandemic, well, maybe one-third are not likely to come back. They are trying to work out who they are on the other side of the pandemic.”

Bazin said that while the main focus is on having the right number of people on site to welcome guests, he no longer can impose on staff working always on weekends.

“Often, it is always the same people at weekends,” Bazin said.

He added finding 200 million euros in savings was far easier than the people piece.

“Fortunately, 95% of the savings have been in corporate offices where people are more educated and have more opportunities to find new jobs,” he said.

He also found time to strengthen relationships with owners.

“My priority is to safeguard the Accor ship. We have never been so close to the owners than we have been in the last 18 months, and it is better now,” Bazin added.

Bazin said the numerous rules, regulations, tests and proof of tests and vaccinations required at varying levels across Europe is part reassuring and part stupid.

“We just have to accept them in order to open borders, but I certainly do not think that it hints at any fragility of the European Union," he said. "I am amazed at how the 27 EU countries banded together in regard to Brexit. I think the EU has become strengthened during the pandemic.”