Louvre Hotels is back on the offensive. This major player in the chain hotel sector, with its 1,700 establishments around the world, including almost a thousand in France, had been discreet lately unlike, for example, Accor, the undisputed leader in budget and mid-range hotels, or B&B Hotels, in full expansion.
With its Campanile, Kyriad and Première Classe brands, Europe's number two hotel group now boasts visit a new lease of life. Arrived at the head of the group last summer, replacing Pierre-Frédéric RoulotFederico J. Gonzalez unveiled a five-year strategic plan with a clear objective: to place each of its brands in the top 3 of their segment in its key markets by 2028.
" Today, Louvre Hotels Group is entering a new dynamic and with the support of our shareholder Jin Jiang Hotel, we are determined and mobilised to carry it out and build its future together" said Federico J. González, CEO of both Louvre Hotels Group and Radisson Group. Both groups are subsidiaries of the Chinese hotel group, the second largest in the world behind Marriott.
In addition to internal changes such as the optimisation of IT systems, new services for franchisees and an overhaul of the loyalty programme, this strategic plan focuses on refreshing the hotel stock. As part of this, a massive investment plan of around 400 million euros will be devoted to renovating 80% hotels between now and 2028.
This update will primarily concern the flagship brand of Louvre Hotels, CampanileWith a rethought restoration and revised designs. " From the reception area to the bedrooms, from the communal areas to the outdoors, new warm, modern and comfortable environments have been created." explains the group.
A new three-phase strategy
While the network's metamorphosis will take place over the next five years, Louvre Hotel will be deploying new services more rapidly. "brilliant basics in all its establishments. By the summer of 2025, 80% hotels should be offering new bedding, new showers, " which will systematically position brands above the standards of their category "according to Louvre Hotels.
Once these fundamentals have been rolled out, the second part of the strategic plan will build on these new foundations to move into the next phase. a phase of consolidation of organic growthscheduled for 2026-2027. With their redefined and modernised concepts, Louvre Hotels expects its brands to be more attractive to investors and franchisees, and all the more conducive to conversion. They will then embark on a phase of stronger expansion, starting in 2028.
This renewed growth will be driven mainly by the leading brands - Campanile, Première Classe, Kyriad and its Direct and Prestige versions - but also by Golden Tulip in the top-of-the-range segment and by two more recent hybrid brands within the group. Louvre Hotels intends to extend its new-generation hostel concept Hoshowhich will be launched in 2021, and at the same time develop Tulip Hotels & ResidencesThis contemporary mid-range brand combines classic rooms with studios and long-stay flats under one roof.
Although Louvre Hotels Group is now present in 70 countries, its new growth dynamic is expected to be less scattered and more dynamic. focused on its three key markets. This includes France, of course, where more than 200 new hotels are expected to be opened between 2024 and 2028, but also India, where the group is a leader in the mid-range chain hotel sector. With 50 new hotels due to open in the next few years, the 200 mark is within sight.
As for China, Louvre Hotels can count on synergies with its owner Jin Jiang to continue to expand its footprint there, with the aim of almost doubling the number of hotels between 2024 and 2028. With 265 hotels in the pipeline, 500 hotels opened is on the cards. At the same time, more than 120 hotels are expected to be opened in the rest of the world over the next five years. All of which goes to show the market that Louvre Hotels is not yet a museum.
