What led Accor to establish the Pinnacle Program?

The Pinnacle Program really comes from our three main diversity initiatives:  workforce diversity, workplace diversity and marketplace diversity.  Each initiative has key components, and under the marketplace diversity initiative we have four key points: industry partnerships, franchise diversity, supplier diversity and philanthropy.  The Pinnacle Program came out of our franchise diversity initiative.  There’s a history with that.  What is now the Pinnacle Program began several years ago as the Ambassador Program.  I’ve been with Accor for two years, (and shortly after I arrived) we began looking at that program and asking our customers questions about what was lacking.  We just started listening to what potential franchisee owners said they needed.   They told us that they were looking for opportunities to start in the industry.  They were looking for training and support.  They also wanted a partnership; and they wanted financing relationships.  They raised questions about staffing, employment and what Accor was doing in terms of forming partnerships and relationships with the community.  From that information we birthed the Accor Pinnacle Program.

Yes, we started doing this last summer.  Part of my strategic initiative is to have a very aggressive diversity strategy over the next three to five years.  I looked at each of the components under our three main diversity initiatives and when I looked at franchise diversity, I saw an opportunity for us to take it to the next level.  We have clients and customers that are of all ethnic groups.  We are in (ethnically diverse) communities.  We have properties in those communities.  Our employees work in those communities, and they participate in those communities.  So, we want (our franchisees) to mirror what our customers look like.  The hospitality industry is booming, but when you start looking at hotel properties and you are ready to invest, you realize that everyone doesn’t have huge investment sums.  Economy products are an excellent way to enter into the entrepreneurial market.  You can stack (an economy product) and grow it into larger type properties under our other brands.

When you were soliciting feedback about the Ambassador Program, did prospective franchisee owners say they wanted to start with economy products?

I’m not saying people wanted to start with economy products specifically, but I am saying economy products are a good way to get started.  What happens with many aspiring entrepreneurs is they want to become an entrepreneur and own a hotel, but they don’t have the funding.  They don’t have the monies to build a $50 million property.  They have to start somewhere in the industry.  Economy products are a great place for entrepreneurs to start with an investment that offers a great return.  It opens the door for someone to get into the hotel industry and learn the business.  The message we heard from people was that they were interested in education, in learning about how to run a hotel.  Economy products let them do that.

The very first thing we do is qualify you to ensure that you or your partners have the financial wherewithal the make the investment.  We also want to make sure you have land available.  Many times entrepreneurs who are interested in hospitality  already have a property in mind.  It might have been in their family for years, or it might be a spot that is undeveloped and they have been eyeing a long while.  So, the pre-qualification process involves discussing your land as well as your finances.

Is there a size threshold to get started with a property ?

Yes, the minimum is a 62 room property; and the investment one has to make will vary on the size of the property and the partnership.  But let me say this, if someone is really interested in participating in the Pinnacle Program, then I would encourage them to pick up the phone.  We want to have a personal relationship with each participant.  In fact, our philosophy and focus is on developing a personal relationship with each franchisee.  That’s very important to us.  Many times leads don’t just come from the business community, they come from our participation in diversity events in the community.  I may be in the community talking with someone who is interested in a hotel and I will have the opportunity to talk about the Pinnacle Program.  If the person is a strong candidate, I will partner with our franchise department, and that’s when the rubber will hit the road.

So, the annual NABHOOD (National Association of Black Hotel Owners, Operators and Developers) Conference is the kind of event where you would discuss the Pinnacle Program?

Yes.  In fact, we previewed the Pinnacle Program at NABHOOD in July.  Last year was my first NABHOOD Conference, and I came back excited because I saw an opportunity for us to form a partnership with the organization.  Accor is a member of NABHOOD, and the partnership serves both sides.  We have been able to educate NABHOOD about our economy-brand product and what we offer; and they have been able to educate us about the needs of potential entrepreneurs who come to them.  They host a wonderful conference that provides opportunities for potential entrepreneurs to meet successful entrepreneurs, to look at all of the (hospitality) brands, to preview educational opportunities, to discover supplier diversity opportunities and network.  The conference provides attendees the opportunity to learn much more about the industry than what one could get from a brochure or magazine.

What are the most important attributes for a prospective franchisee to possess in order to succeed with Accor?

The first thing is a desire to enter the hospitality industry at the entry level.  Accor has a range of properties that starts with economy and goes up to five-star properties – our Novetel and Sofitel brands.  The Pinnacle Program is targeted for the person who wants to come in at the entry-level of the hospitality industry.  Next, the person needs to have a site or area that would be an ideal location of a Motel 6 or Studio 6 property.  And there’s one more thing that they must possess, a work-ethic.  Just like any entrepreneurial venture, it takes hard work, commitment and dedication to succeed in the hospitality industry.  Truly, we look for that.  Now, there are some people who want to own and manage a property, and there are others who want to own a property as an investment and have someone else manage it.  Accor can handle both scenarios.  We can establish management service agreements with potential clients where we provide on-site management, or we can train and develop an individual to become a successful owner/manager through our Pinnacle Program.

We previewed the Pinnacle Program this summer at NABHOOD and we are continuing to put the finishing touches on it.  We’re out in the community talking about it, which has generated a lot of interest - so, we’re excited.  We’ll do some advertising as we complete the program; and we’ll be updating our website over the next few months.  The new site will contain information about the program. 

If I’m serious about the Pinnacle Program, will I need to schedule some time at your headquarters in Dallas, Texas?

Yes.  We want our potential franchisees to spend a day at corporate.  It’s a “Discovery Day” where you get an education about our brands, our training programs, and specifically the Pinnacle Program.  You don’t just sign a set of documents and don’t see us again.  It truly is a partnership.  We’re right there with you every step of the process. 

Sure.  The Accor Pinnacle Program has five, well, really six key phases. 

The process begins with a discussion of a proposed project between Accor and a potential minority franchisee.  That’s the first step towards building relationship.  We want to get to know the entrepreneur’s goals.

Next, the Accor development team mentors the franchisee through the process, including site selection and financing parameters, commitment level and cash flow feasibility.

The third phase has each franchisee visiting Accor North America’s headquarters for a “Discovery Day.” Each franchisee receives a complete orientation on Accor, its brands and training programs

The actual training phase takes place at The Accor Académie, located at our corporate headquarters in Dallas.  This phase provides franchisees with in-depth collegiate-level training on how to become a successful property owner.  Since the Academie is at our headquarters, attendees have access to high level executives and their expertise.  Courses cover a number of relevant subjects, including leadership, communication, finance, people management and computer education.  In addition to the training courses at corporate headquarters, Accor Académie online offers hundreds of business and management courses, including custom content that is specific to the franchisee’s brand.  

The next phase involves hands-on learning.  The Pinnacle Program offers new franchisees the opportunity to visit existing properties and to spend time with the properties’ general managers.  Beyond that, Accor provides ongoing assistance by placing corporate managers at new franchisees’ properties for up to five years to help manage the property.  

I guess you can say that the sixth and final phase of the process never really ends because corporate support of franchisees and training at the Accor Academie are ongoing. 

Based on that overview, it would appear that you have fashioned a program that not only prepares African Americans and other minorities to succeed in the hospitality industry, but a program that also helps to reinforce Accor as a diversity leader. 

Last year, I came back from NABHOOD on fire.  We began to develop the Pinnacle Program and got management’s commitment to move forward - to make diversity a key initiative of our corporate strategy.  Our commitment is to  help Accor mirror the communities where we own and operate properties.  I feel we have a strong brand, and it’s a wonderful brand, especially if you want to get into economy lodging. The Pinnacle Program makes entry into the hotel industry affordable for the entrepreneur that has money to invest, and the return on that investment is extremely good.  It also offers a great way to learn the business.  It's a wonderful opportunity, and I’m really excited about the potential benefits to Accor and to minority entrepreneurs.

Thank you for sharing this information with us. 

Thank you.