Camil Yazbeck credits his time working in private equity as one of the biggest stepping stones to his new C-suite position at French hotel company Accor.
Yazbeck was promoted to global chief development officer for Accor's premium, midscale and economy brands on Jan. 6. He joined Accor in January 2020 after more than seven years with Patron Capital as partner and investment director with a focus on hospitality and leisure.
Yazbeck said that prior experience has proved invaluable.
“Being in private equity gave me experience and perspective as an owner, understanding owner’s returns, how they think and what makes hotel deals successful,” Yazbeck said in an interview with Hotel News Now.
Now as a development leader with one of the hospitality industry's biggest brand companies, Yazbeck is putting Accor's objectives into place while leaning on his past experience to empathize with hotel owners.
“One of my key messages to [our] development teams is to always remain focused on the owners’ mindset. As an owner, working with various hotel groups, it was always appreciated when a brand understood our investment profile and proposed a deal that aligned with our objectives. In my experience, that begins with matching the right brand to the right project, matching the owner’s cost-of-capital and return-on-equity expectations,” he said.
Yazbeck added that this approach is universal in its effectiveness with all types of hotel owners.
“This is true whether the owner is a family office, core or core-plus, a high-net-worth individual or a private equity group. Then it is imperative to deliver a level of strength and capacity more powerful than what the owner can achieve independently,” he said.
Similarly, he believes in the importance of human connection to create unique hotel brands that resonate with travelers.
“Although expectations have really evolved in terms of aspects like design and digital technology, guests will remain loyal to the brand and/or hotel that creates a special, personal connection,” he said.
Yazbeck's promotion is another piece in Accor’s reorganization into two distinct divisions dating back to Oct. 1. Deputy CEO and Chief Financial Officer Jean-Jacques Morin lead the group focused on economy, midscale and premium brands; and Accor Group Chairman, and CEO Sébastien Bazin leads the other division, which is focused on luxury and lifestyle brands. Like Yazbeck, Bazin also worked in private equity before he came to Accor in August 2013 from U.S. firm Colony Capital.
With more than 4,800 hotels, Yazbeck’s division represents approximately 85% of Accor's property portfolio and a little less than half of its brand portfolio, which includes Pullman, Swissôtel, Movenpick, Mantra, Novotel, Mercure and Ibis brands.
Yazbeck said that with an increasing number of investors attracted to hotels as an asset class, having two distinct divisions will enable the firm to further drive the performance of projects and owners’ return on investment.
“These brands are key to our success today and tomorrow. [They] are loved by our partners for their strong global awareness, innovative design concepts and profitable and reliable business models. The division is excellently positioned for growth, with an ambitious strategy underpinned by Accor’s vision of augmented hospitality,” he said.
Responsibility and Sustainability
Growth is the focus, but it must be done responsibly and sustainably in response to rising costs, Yazbeck said. For now, the development strategy prioritizes conversions of existing hotels to Accor’s brands.
“Conversion and collection brands are a huge growth driver, accounting for more than 40% of Accor’s worldwide development projects. These projects can be easier on the environment than undertaking new construction, although our new building projects are equally designed to support the achievement of Accor’s strong environmental, social and governance commitments,” he said.
Keeping brand standards flexible for potential conversion candidates is also important for this development push, which include brands such as Grand Mercure, Handwritten Collection and Greet, Yazbeck said.
“We are also seeing that mixed-use projects are now more common, as traditional asset classes continue to be challenged by shifting consumer behaviors,” he said.
“Accor was at the forefront of this movement, reimagining how the population could live, work and play, all within the same building or location. Our projects will continue to include a mixture of elements that drive revenue 24/7. … Our investors appreciate [this] approach to augmented hospitality as an essential way to unlock value and compress their cap rate when these separate businesses are amalgamated together,” he added.
Another part of his new role is to anticipate trends and innovate accordingly, Yazbeck said. A prime example of this is Accor’s January launch of Handwritten Collection, which highlights owners’ inspirations, design and passions.
“We saw the gap in the market . … For independent owners wanting to convert their qualitative hotels, it suits perfectly, providing the option for a franchise agreement and a flexible and cost-effective level of investment,” Yazbeck said.
“For example, one of our owners in France spent 14 years living in Turkey. He shares his passion for the Turkish culture throughout the hotel, through thoughtful touchpoints such as traditional cologne water offered upon arrival for guests to wash their hands, the offering of Turkish specialties like Raki and a selection of books in the library on Ottoman culture,” he said.
The Handwritten Collection brand is off and running with 13 signed hotels in such places as Paris, Madrid, Shanghai and Sydney, Yazbeck said.
“We are currently in discussions with over 110 further hotels, so, indeed, we are seeing that this is an offering that suits owners well,” he added.
Steady as She Goes
Some of Accor's older brands are also part of this development push, Yazbeck said.
“More than 70% of Accor’s development volume is derived from long-standing brands, where franchising is our model of choice, although we do selectively manage some properties in key gateway locations where there is a high density of travelers,” he said.
“Overall, our portfolio brand strategy is driven by market demand. Certainly, there is potential for some of our successful regional brands — such as Mantis, Art Series, Grand Mercure, Peppers, Mantra, Breakfree, Greet, and so forth — to expand into more markets … [but] only where there is guest demand and it aligns with the needs of investors in the market,” he said.
Yazbeck said he is optimistic key macroeconomic factors will sustain long-term industry growth.
“The millennial generation is now entering their 40s with high levels of disposable income. More so than previous generations, they prioritize travel and seek ways to get out and see the world with their families and friends, while also placing high value on taking shorter, closer-to-home breaks,” he said.
Yazbeck said he feels blessed to be working in hospitality.
“I’ve been able to travel the world, visit countries and experience cultures I might not otherwise have been able to see. I’ve met, worked with and made life-long friends with people from all over the globe, and this has been so personally enriching to me,” he said.
“Travel changes a person. It opens doors and new pathways in the mind. Most importantly, it creates a greater understanding and empathy towards people from all walks of life. This is [also] why travel is such a passion for so many of our guests,” he added.