Accor, a French hospitality giant operating brands like Ibis and Pullman, aims to open a hotel weekly in Asia this year due to rising demand. The company, focusing on core brands like Novotel, Pullman, and Ibis, plans significant expansion, including notable signings like the Fairmont Agra and Novotel Bengaluru Airport. With India's aviation sector booming, Accor remains optimistic despite high room rates. Accor, encouraged by hospitality growth, particularly in emerging markets like India and Indonesia, observes increased developer interest in hotel construction. Last year, it signed 65 hotels in Asia, with plans for further expansion, reflecting the region's promising hospitality industry outlook.
Accor, a renowned French hospitality giant known for its brands like Ibis and Pullman, has set its sights on an ambitious goal for the Asia region: to unveil a new hotel every week this year, responding to what it perceives as a remarkable surge in demand. In 2023 alone, Accor signed deals for 11 new properties and inaugurated 20 across India, with its primary focus resting on expanding its core brands?Novotel, Pullman, and Ibis?constituting about 70% of its overall business. Noteworthy additions to its portfolio last year included the prestigious Fairmont Agra, a Pullman establishment in Amritsar, a Novotel property at Bengaluru Airport, and a Grand Mercure establishment in Jaipur.
Garth Simmons, the company's Chief Operating Officer for Asia overseeing its premium, mid-scale, and economy divisions, recently visited India and expressed optimism about the country's hospitality sector, despite the prevailing high room rates. Simmons highlighted that room rates are reflective of demand-supply dynamics, noting that demand levels are particularly high at present. Accor shows its confidence in the sustained growth of travel demand by collaborating with InterGlobe Hotels in India to develop Ibis properties, bolstered by substantial aircraft orders from Indian entities, particularly Tata Group-owned Air India and IndiGo.
Simmons emphasised that while hotel rates have increased, this trend is not isolated but rather mirrors broader economic shifts. He pointed out India's resilience compared to other Asian markets, such as Vietnam, which has faced challenges due to the absence of Chinese tourists. On the contrary, Indonesia's domestic market, akin to India's, has displayed resilience. The hospitality boom, especially in emerging markets like India, Vietnam, and Indonesia, has encouraged Accor to observe a rise in developer interest in building hotels, a trend less prominent in more developed markets where hotel refurbishments prevail.
Accor's expansion plans include opening a 60-key hotel in Chandigarh, adding 230 rooms across two hotels in Goa, and introducing an additional 125 rooms in Delhi. Furthermore, it aims to launch a Novotel property in Bhubaneswar featuring 117 rooms and an Ibis Styles establishment in Mysuru with 142 rooms. According to a report by JLL India released in September 2023, India's hospitality sector is meant for significant growth, particularly in tier-II and tier-III cities where the demand for affordable accommodations is driving expansion. The report highlights that while tier-I cities witness upscale hotel developments, the midscale segment dominates in smaller cities, reflecting the growing demand for budget-friendly lodging options in these markets.
Accor is a leading global hospitality group that operates in over 110 countries with 5,400 properties, 10,000 food and beverage venues, wellness facilities, and flexible workspaces. With a diverse portfolio of more than 40 hotel brands ranging from luxury to economy, including Lifestyle with Ennismore, Accor is dedicated to upholding business ethics, responsible tourism, sustainable development, community engagement, diversity, and inclusion. Established in 1967, Accor SA is headquartered in France and is publicly listed on Euronext Paris.
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