According to a Reuters report, Chief Executive Officer of Accor may be expelled by the company's board by Tuesday due to weak performance of the company shares in the local bourse in the past months. Denis Hennequin, who was the former CEO of McDonald's in Europe, assumed the top position at Accor after the earlier CEO quit back in 2010. The board said that it was Mr. Hennequin's mission to revamp the company and the programs are taking its toll on the company. In February of this year, Accor, Europe's largest chain of hotels, planned to increase its revenue through franchises and hotel management, to grow in emerging markets and to reduce its company costs.
In the Le Figaro newspaper, it was reported that top shareholders, Colony Capital, a U.S. investor and Eurazo, a private equity firm, wanted the chain to increase the sales of hotels it owns in accordance with franchises or management contracts. It was also mentioned in the report that the board will possibly hold a meeting on Tuesday to make its final decisions.
Officials of Accor cannot be reached for their comment while investors, Colony and Eurazo declined to discuss the matter.
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