International Hotel Group

Business Challenge

In late 2002, a leading global hospitality group’s parent company proposed separation of the group’s hotels and soft drinks businesses from the retail business, and the return of $700 million of capital to shareholders.  Also at this time, the company’s leadership ability was being questioned by analysts and investors on its ability to grow a profitable hospitality company.  The company’s leadership team faced disjointed brands, regions and operational teams.

Accelare team members engaged with the company’s leadership team to break through these obstacles.  The effort included a rapid design phase to overhaul the company’s operating model and 6 month detailed design and implementation period.  As a result, the joint effort produced a aligned and streamlined global organization.

Outcome

The hospitality group was able to deliver a more efficient organization with 30% decrease in its cost structure.  Also, the leadership team was able re-establish its ability to investors and analysts as evidenced by a 75% share price increase in a span of 10 months.

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