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Accor to Grow Luxury/Upper Upscale Portfolio

Thursday March 7th, 2013 - 11:04AM

BERLIN—During the ITB Berlin trade fair, Accor unveiled plans to grow its luxury/upscale portfolio from 300 hotels and 65,000 rooms worldwide to 400 hotels by 2015.

“One can now count on a strong European voice in the luxury and upscale market. Our brands combine the best of international standards and an audacious interpretation of the universal essence of luxury due to our French origins,” Yann Caillère, Accor president and COO, said in a statement. “Our ambition for our brands and their network are immense and we are perfectly tailored to expand rapidly on this market.”

With strong leadership positions in Latin America, Middle East Africa and Asia-Pacific, Accor is well positioned to capture the new and rapidly growing demand from emerging market clients, in quest of a different experience of luxury and high-end hospitality.

Currently, 42% of the Group’s luxury/upscale hotels are located in Asia-Pacific and 35% are in key European cities. Development will be conducted asset light with a prominence of management contracts, the Group’s preferred model on the luxury/upscale segment. Focus will be on emerging markets, including Latin America, Middle East and Asia-Pacific, which counts, on its own, for over 60% of the current pipeline (key countries include China, Vietnam and Indonesia). The segment’s gross revenue has risen by 15% in 2012.

Accor also unveiled a second tailor-made adaptation of the Grand Mercure brand in the world, with the Maha Cipta brand in Indonesia.

“After the successful launch of the tailor-made brand Grand Mercure MeiJue in China, we are launching Grand Mercure Maha Cipta in a market where we are already the leading player,” Grégoire Champetier, Accor global chief marketing officer, remarked in a statement. “We have tailored Grand Mercure for local travelers looking for regional inspirations. Our clients are expecting brands capable of understanding the diversity and the complexity of their identity. To meet these expectations, we intend to continue the development of the Grand Mercure brand in other key regions.”

The first Maha Cipta hotel will be the Grand Mercure Jakarta Harmoni, located in the heart of Jakarta’s central business district. The hotel adapts the Maha Cipta brand signatures to connect with upscale travelers through unique local touches.