French channels: Le monde en grand

French hotel chains? Accor inevitably springs to mind. With its fifteen or so brands, including Sofitel, Pullman, Ibis and Formule 1, the group is leading the way in the development of French brands on every continent. But others are also in the running, including Le Méridien, Campanile, Kyriad and the latest addition, B&B.

Ibis, Mercure, Etap Hotel, Formule 1, Campanile, Première Classe, Novotel, Kyriad, B&B, Pullman, Sofitel, Concorde, Le Méridien... So many brands that have in common their origins - France - and their ambitions - international. Even if certain chains, such as Le Méridien or the Louvre Hotels brands - Kyriad, Kyriad Prestige, Campanile, Première Classe - are no longer French-owned, they are no less attached to their origins, the better to sell them outside our borders.

Most of these integrated chains were created in the last four decades of the 20th century, and have grown very rapidly. Created, one by Air France, the other by the now defunct UTA, Le Méridien and Sofitel had an international destiny from the outset. "The idea was to provide accommodation for the crews of these airlines and their customers", recalls Christian Karaoglanian, Accor's General Manager of Hotel Development. The conclusion is that, despite a reduction in the number of hotels in recent years, the two brands are still well represented around the world. Of the 131 hotels that Sofitel now has, only a quarter are located in France. The others are spread mainly between North Africa, the Middle East and Asia, where China accounts for 23 out of 37. For its part, the Le Méridien network is very closely linked to that of Air France. "We still have a very strong presence in Africa, the Middle East and Asia, where two-thirds of our hotels were located when we bought the chain in 2005," points out Eva Ziegler, Global Brand Manager at Starwood Hotels and Resorts. Over the next decade, other openings have been announced, mainly in Latin America, Europe and Asia. Some fifteen contracts have already been signed, with eleven more to follow.

With 4,100 hotels at 31 December 2009, the world's fifth-largest hotel operator is aiming for third place by 2015. It plans to open 1,800 hotels and 220,000 rooms over the next five years. Most of this growth will take place outside France, with 70 % on the European and Asian continents alone. Novotel is, of course, at the heart of the plan, with its sights set on the same areas, and more particularly India, where twelve projects are already in the pipeline.

But the Group's spearheads are its budget brands: Ibis and Formule 1. The latter - renamed F1 in 2008 - is set to expand in Brazil and Australia, where it already flies the flag. A hotel will also open under its banner this year in Auckland, New Zealand. For its part, with 883 hotels in over 40 countries, "Ibis is truly a universal product with a tried and tested recipe that works just as well in the Persian Gulf as it does in Brazil, Moscow or Singapore. The model appeals to a very broad customer base, from families to executives on assignment", explains Christian Karaoglanian. Between January and December 2010, the chain should have opened 63 new addresses in Europe, Asia, Africa and America. China and Brazil top the list of markets to conquer, with ten openings each this year. Other emerging countries include Algeria, Guinea, India, Bahrain, the United Arab Emirates, Kuwait, Argentina and Chile.

In Europe, where the brand already has almost 710 hotels, the manoeuvres are not over. Openings are planned in Germany, the UK, Turkey, Spain, Switzerland and Luxembourg. Already a major presence in most of the major cities of Western and Central Europe, Accor's star brand could have been content to expand only in the former Eastern bloc where, after the Czech Republic, Romania, Hungary and Slovakia, this year it plans to enter Russia with its first three addresses in Moscow.

High-potential markets

But such a strategy would have left the way clear for its compatriots and nevertheless competitors who want to broaden their horizons: Campanile, Kyriad, Kyriad Prestige and B&B which, after setting up in Germany, has just entered Italy and wants to tackle Poland and Portugal.Having fallen into the lap of Starwood Capital, which bought Louvre Hôtels in 2005, Campanile is gradually leaving the French cocoon. It is focusing primarily on neighbouring countries, presenting itself as "a European network of hotels and restaurants". While in France it has long had the image of a motorway-side or industrial zone hotel, its new establishments are moving closer to town centres. "This transformation began when we left France. Abroad, almost all our hotels are urban," points out Matthieu Evrard, Director of International Development at Louvre Hotels.

With the acquisition of the Golden Tulip group by Louvre Hotels in 2009, the ambitions of Kyriad, Kyriad Prestige and Campanile have expanded. A good number of Kyriad and Kyriad Prestige hotels in France are set to come under this new banner, known worldwide through its 230 establishments in more than 40 countries, but this merger will also enable "Kyriad and Campanile to develop in high-potential markets where the three variations of Golden Tulip are already present: Royal Tulip, Golden Tulip and Tulip Inn", adds Matthieu Evrard, particularly in countries such as Saudi Arabia, where they have more than a dozen addresses. In addition to external growth, the expansion is also taking place through the launch of new brands. Accor has created All Seasons, MGallery and Pullman, whose existence we had previously forgotten. While All Seasons and MGallery have essentially a European focus for the time being, and aim to attract independent hoteliers with two or three-star hotels and four-star urban hotels respectively, Pullman is already well established internationally, with 51 establishments. This is because the chain, which is entirely dedicated to business travellers, is mainly made up of former Sofitels, which have been downgraded, and Mercures, which have moved upmarket.

In the end, only one region seems to be resisting the Frenchies: North America. "There is already a plethora of channels on offer there", agree Christian Karaoglanian and Matthieu Evrard. And they admit that the standards of the French chains are not really competitive with those of the Americans, particularly in terms of space. "A room at Kyriad is between 16 and 20 m2. They can be up to twice that size with American brands of equivalent category", says Matthieu Evrard. In conclusion, at Accor, only seven Novotel, nine Sofitel and six Ibis defend the French colours. And there is no desire to go any further. "We finally established ourselves in the budget segment through the American chain Motel 6, which we bought last century", comments Christian Karaoglanian. For its part, Louvre Hotels is again relying on Golden Tulip. Only Le Méridien intends to find its place there, now that it is American.