Accor’s strategic shift to premium hotels is expected to generate half of the new properties it signs in 2024. This will allow the Paris-based hotel company, which has traditionally focused on budget-focused segments, a chance to diversify away from their traditional roots and focus on higher-growth sectors in higher-growth countries.
Jean-Jacques Morin told Skift the transformation is a fundamental change in a company that has been known for decades for its European economy brands.
Morin stated that the company was originally a mid-sized and economy business. “What was lacking was diversification.”
Accor realised a decade earlier that it was wasting money because future growth will be in premium and luxurious hotels.
Jean-Jacques Morin is the Deputy Global Chief Executive Officer of Accor. Sandrine Roubeix took the photo. Source: AccoR.
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Another goal is geographic diversification. Accor estimates that 600 of its approximately 900 new hotels will be opened in China, Asia-Pacific and the Middle East over the next couple of years. It believes that these markets have a high growth potential, particularly in India and Saudi Arabia.
Will it add to its 47 brands, the largest number of hotel groups?
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