French hotel and corporate services group Accor plans to raise its network of hotels to 5,000 by the end of 2010, the company said during a presentation to investors of a new business plan for its hotels division.
French hotel and corporate services group Accor plans to raise its network of hotels to 5,000 by the end of 2010, the company said during a presentation to investors of a new business plan for its hotels division.
Accor said its current network of about 4,000 hotels will be optimised through divestments, re-brandings and renovations and revitalised with the addition of over more than 1,500 new hotels over the 2007-2010 period. Chief executive Gilles Pelisson said the percentage of wholly-owned hotels would decline to about 23% in 2010 from 50% at end 2006, in favour of management contracts and franchises that are seen as giving Accor more flexibility.
Pelisson said the company plans to increase market-share in Europe's mid-range hotel sector, while strengthening the Motel 6 chain in North America. At the same time, Accor plans to grow in budget and mid-range hotels in high-growth emerging countries like China and India. In China, Accor plans on increasing the number of budget and mid-range hotels to 125 by 2010 from 18 in 2006 and expects a total of 180 hotels in China by 2010 when high-end hotels are considered in India, the company expects to have 40 budget and mid-range hotels by 2010, up from just one in 2006.
