Bloomberg News

Accor Plans Asia-Pacific Expansion With 200 Hotels in Pipeline

October 13, 2011

Oct. 14 (Bloomberg) -- Accor SA, Europe’s largest hotel company, is embarking on a push to expand in the Asia-Pacific region, with plans to add more than 200 hotels by 2014.

With 40 percent of its global pipeline of hotels in the region, the Paris-based company will focus on China, India and Indonesia, Michael Issenberg, Asia-Pacific chairman of Accor, said in a telephone interview.

“China and India are very important for us,” Issenberg said. “But we’re also having success in other parts of the Asia-Pacific, like Indonesia. Other growth markets for us are Australia and Vietnam.”

The group, which has 450 of its 4,000 hotels in the Asia- Pacific region, is adding more as demand for travel increases. Asia-Pacific airline carriers will post a profit of $2.5 billion in 2011, up from a June forecast of $2.1 billion, International Air Transport Association said last month.

The company plans to open 63 hotels in India by 2014, including its first Sofitel, its luxury brand; Formula 1, a budget chain, and Pullman, its upscale business hotel, in December, Issenberg said. It also plans to add 35 to its existing network of 40 in Indonesia by 2015, he said.

In China, the group will add 60 hotels to its current 108, and it is seeking to take over the management of more hotels in Australia, where it signed 18 management and franchise contracts this year, Issenberg said.

Accor also plans to reduce the number of hotels it owns globally as part of its “asset-light” strategy, said Issenberg. The company, which owned or leased about 60 percent of the hotels it managed globally in 2004, is seeking to bring that proportion down to 20 percent, mostly by selling hotels in Europe and North America while continuing to manage them, Issenberg said.

--Editors: Linus Chua, Andreea Papuc

To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net


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