Accor has recently signed a major partnership with the Huazhu group in China. What are your expectations?
Sophie Stabile - We have signed with Huazhu a long-term partnershipHuazhu is a leading Chinese hotel group with very rapid growth! Huazhu is a leading and fast-growing Chinese hotel group! Thanks to this partnership, we are creating a Chinese hotel giant with more than 2,000 hotels ranging from budget to luxury, and combining the international reputation of our brands with Huazhu's local expertise. China is the world's largest outbound tourist market, and growing exponentially! It is therefore essential that we make ourselves known to international and domestic Chinese customers if we are to consolidate our leadership. By leveraging Huazhu's local strength and its relationships with local property investors, we will accelerate our development in the country and encourage the growth of our groups. This is why we have entrusted them with the operational operation and development of our ibis, ibis Styles, Mercure, Novotel and Grand Mercure brands via a master franchise in China. Our ambition is to open 400 hotels in the next five years.
Two years ago, Accor bought Mirvac in Australia and Posadas hotels in South America. Do you plan to make any new acquisitions in the near future?
Sophie Stabile - Our approach is opportunistic and we are always listening to the market! In 2014, we opened nearly 30,000 rooms and more than 200 hotels, 40% of which are located in Asia-Pacific. In terms of our future development, our pipeline is now at an all-time high, with 156,000 rooms secured over the medium term. This pipeline is mainly concentrated outside Europe, with 52% of rooms in the Asia-Pacific region, 18% in the Americas, and 14% in the Mediterranean, Africa and Middle East region.
Accor has also taken a minority stake in Mama Shelter. What does this trendy hotel concept add to your portfolio of brands?
Sophie Stabile - Accor and Mama Shelter are first and foremost a wonderful meeting that took place at the right time... This partnership (we hold 37% of their capital) will enable us to create a common dynamic through an exchange of expertise, particularly in the restaurant sector, which has made Mama Shelter a dazzling success with a very diverse, young and urban clientele. In just six years, their original concept has proved its worth, and we see great potential for growth. That's why we're putting our international network of developers at their disposal: around twenty hotels will be opened over the next five years.
Mercure now has a rejuvenated look, the Pullman hotels in Paris have recently been renovated... How are your historic brands evolving at the same time?
Sophie Stabile - With the ibis family, we have reinvented the budget hotel by demonstrating that well-being, emotion and the customer experience are as essential as functionality in this segment. As a result, we have consolidated our position as world leader in this segment. To face up to a highly competitive market, Mercure has embarked on a profound transformation since 2013 to build a more attractive and coherent brand around innovation and authenticity with a new concept of rooms. Novotel is currently undergoing a review, which we will present by the end of the year. In the luxury and top-of-the-range segment, we are taking the time needed to establish a precise diagnosis. In France, for example, MGallery hotels such as the Hôtel Carlton in Lyon, Le Royal Emeraude in Dinard and Le Grand Hôtel in Cabourg have been named the top hotel in their town by Tripadvisor. We have also announced the renovation of the Sofitel Paris le Faubourg by Didier Gomez, the forthcoming opening of the Hôtel des Cures Marines in Trouville, renovated by Jean-Philippe Nuel, and the inauguration of the Pullman Paris Roissy Charles de Gaulle Airport designed by Christophe Pillet...
The Hôtel des Cures Marines in Trouville renovated by Jean-Philippe Nuel (DR)
We are currently seeing a flowering of new brands, very young in spirit, in line with the expectations of future generations of travellers. Does the hotel industry need to change its approach to prepare for the future and face up to competition from players like Airbnb, for example?
Sophie Stabile - Airbnb and Accor are not in head-to-head competition. Airbnb targets all travellers who do not stay at home, with a particular focus on leisure customers. Hotels only account for 15% of accommodation for these travellers, and the business segment represents around two-thirds of our clientele. In addition, we offer hotel brands with personalised catering, wellness or meeting services... Airbnb is nonetheless an innovative player that reflects a change in behaviour that needs to be taken into account. Our strength remains the strength of our brands and their ability to reinvent themselves. The success of the ibis family bears witness to this: we have demonstrated our ability to rethink budget hotels, and the ibis brand is now the hotel brand in this segment with the highest spontaneous awareness in a large majority of European countries. As a leader, we have a duty to be constantly on the lookout for initiatives that will better meet our customers' expectations. We support innovative projects such as the development of connected trolleys for chambermaids or google glasses, in partnership with the Innovation Factory, and we have set up an innovation unit within the Group to support start-ups. It's in the Group's DNA to be alert to new trends and to identify players with strong potential.
Accor has unveiled a vast digital plan. Is this strategy essentially "defensive" in order to face up to competition from online agencies such as Booking and Expedia?
Sophie Stabile - Our digital strategy aims to consolidate our leadership across the entire customer journey. Online sales have been growing at double-digit rates for several years now, and should pass the 50% mark in terms of total sales in the near future, including via mobile phones. Today, 12 % of online bookings are made from a smartphone, but we are aiming for 40% within four years. Unlike the new players in online tourism, we have been investing in digital technology for many years. As part of our new €225 million investment plan, 55% of the amounts committed are aimed at consolidating our current performance, while 45% are dedicated to gaining market share and optimising unit distribution costs. Accor now has the resources, vision and structured governance to participate in the digital revolution that is sweeping the global hotel industry.
How will these high-tech services make life easier for business travellers?
Sophie Stabile - Business travellers make up a significant proportion of our customer base, and each of our brands offers a range of services tailored to the needs of these customers, depending on their expectations and market segment. A few examples: by acquiring the company Wipolo, we are extending the services we offer our customers with a "travel companion" function. This enables business travellers to store all their travel information (plane and train tickets, hotel and restaurant reservations, etc.) on their mobile phone. With our dedicated iPad application, we offer a solution tailored to the needs of business travellers on the move. Our digital press service, currently being rolled out, provides free access to 3,000 international press titles. Thanks to the "Welcome by Le Club Accorhotels" programme, business travellers can enjoy a personalised welcome when they check in online. Immediate benefits: their key is ready when they arrive at the hotel, no more administrative formalities and no more need to go to reception on leaving! The invoice is sent by email. By the end of 2015, we will have deployed the programme in 1,500 hotels.
