Accor is seeking to up its stake in China. According to FT, it has signed a strategic alliance with China Lodging Group to more than double the number of its hotels in the coveted Chinese market within five years.
The alliance will reportedly bring together Accor's brands with China Lodging’s 1,900 existing hotels in China.
China Lodging said it would open between 350 and 400 new hotels under Accor’s budget and mid-scale brands in the coming years.
Accor reportedly already has 144 hotels in China, the majority in the budget and mid-scale segments.
As part of the agreement, Accor’s economy and mid-scale hotels in China will become part of China Lodging, also known as Huazhu, which will also become Accor’s master franchisee for the China region. In return, Accor will take a 10-percent stake in the company as well as a seat on Huazhu’s board.
Conversely, Huazhu will take a 10 percent stake in Accor’s luxury and upscale hotels in China, though Accor will continue to own and develop them.
The two companies also said that they would link their loyalty programs.