Key facts
- Accor opened its 800th hotel in China.
- Accor aims to open 800 additional hotels in China within five to six years.
- The expansion will prioritize midscale and premium brands.
- Accor is targeting third and fourth-tier cities for growth.
- The company has strategic partnerships with local hotel groups including Huazhu Group.
Accor has announced ambitious plans to double its hotel footprint in Greater China, aiming to reach a total of 1,600 hotels within the next five to six years. The company recently celebrated the opening of its 800th hotel in China and intends to add another 800 properties by 2031. This expansion strategy will primarily focus on midscale and premium brands, with a significant push into third and fourth-tier cities where Accor sees growing potential and demand.
Accor's growth in China is supported by strategic partnerships with major local hotel chains, including Huazhu Group, JinJiang International Holdings, and Sunmei Hotels Group. The partnership with Huazhu Group, dating back to 2014, grants Accor franchise rights for brands like Mercure and ibis in China. The company's approach emphasizes rebuilding fundamental strengths and advancing through a layered brand strategy, moving beyond simply adding rooms.
Accor is also addressing industry challenges such as pricing discrepancies between direct booking channels and online travel agencies (OTAs). The company recognizes the importance of direct channels for maintaining customer data and relationships. Furthermore, Accor is adapting to the evolving landscape of AI-driven search, focusing on improving data granularity and structuring content to enhance discoverability and user consideration.