Accor becomes ‚Äúgame changing” player in China
Accor has signed with Huazhu Hotels Group to create the “most prominent” and “diversified” hotel company in China, boasting over 2000 hotels and the strongest pipeline in the country.
The long-term strategy, according to the hotel group, is to grow the China market with the development of 350 to 400 new Accor branded ibis, ibis Styles, Mercure, Novotel and Grand Mercure hotels under a master-franchise with Huazhu, also known as China Lodging Group.
Accor will also take a seat on the Huazhu board as part of its new 10% stake in the company.
“This ground-breaking collaboration will leverage the strengths of Accor’s global brands with a leading player in Chinese hospitality,” Accor ceo, Sebastien Bazin said.
This major alliance is said to “accelerate” both groups’ expansion in one of the world’s largest outbound travel markets, and marry Accor’s internationally recognised brand to the “strong development capability” of Huazhu Hotels Group in China.
Huazhu currently has a portfolio of over 1900 hotels and was the 13th largest hotel group globally in 2013. Brands include Joya, Manxin, Elan and Starway to name a few.
Accor currently has 144 hotels across China and as part of the transaction, its economy and midscale platform in China will become part of Huazhu while the company becomes Accor’s exclusive master-franchisee operating and developing in Mainland China, Mongolia and Taiwan for the economy, midscale and upscale Grand Mercure brand.
The agreement does not affect Accor’s other luxury and upscale brands in China, including Sofitel and Pullman, which will continue to be owned and developed by the hotel group. All other existing hotels in China will also continue to operate as their own identities and under current brand standards.
Under the new partnership, customers of both loyalty programs (together 47 million card holders) will be given the opportunity to access a network of over 5,600 hotels globally.
“This major step is key to our digital transformation as the agreement will link the power of both groups’ reservation and loyalty platforms, providing an expanded distribution capability,” Bazin said.
“This agreement will provide travellers and loyal members more access and more choice of hotels.”
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