Accor continues expansion in China

Accor Greater China signed 31 new contracts since the start of 2012, including one Sofitel, nine Pullman, five Mei Jue (Grand Mercure), one Novotel, as well as 15 ibis projects, adding a total of 6,572 new rooms. In all, Accor’s development pipeline in China exceeds 90 new hotels committed and further manifests Accor’s sound momentum in both the upscale and the economy hotel markets.

The Pullman, Mei Jue and ibis hotel brands have experienced the strongest demand so far this year and most of these new contracts are being established in Tier 2 and Tier 3 cities, in line with the group’s overall expansion strategy, which looks also beyond the main cities in the country.

This includes hotels such as Pullman Zhoushan Seaview, a 22-story hotel with sea views for all guestrooms, to open in 2015. The hotel is located in China’s only prefecture-level city consisting solely of islands. The destination is included in the priority group of coastal economic developing cities.

After a major re-engineering that tailored the Grand Mercure brand for the Chinese market announced in February, Mei Jue is meeting with support from developers in the country. One recent contract for the brand is the newly signed Mei Jue Foshan Changcheng, which is situated in the center of Foshan, in southern Guangdong Province.

In the economy hotel segment, Accor’s ibis hotel brand has enjoyed a strong start to the year with 15 new projects committed. The company reportedly has been receiving significant demand for new ibis projects under franchise in China. Within this newly committed portfolio, seven of these projects are destined for Tier 2 and Tier 3 cities like Nantong, Quanzhou, Dandong and Leshan.

Figures from the China Tourist Hotels’ Association suggest that the economy hotel segment now accounts for 30 percent of the Chinese mainland’s hotel industry, and that the industry still expects huge development potential.

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Tisch joined Loews Hotels & Co in June 2017 from Loews Corp., where he was a VP.