Accor doesn't do things by halves in the Middle Kingdom. Having been present in the Chinese market for around forty years, the French group already has more than 830 hotels – representing 140,000 rooms spread across fifty cities – in the Greater China region. Its objective is now to triple its offering with the development of 1,600 establishments over the next five to six years.
To accelerate its growth at such a rapid pace, Accor intends to continue to rely on strong partnerships, notably the strategic alliance formed in 2014 with the former Huazhu Group – now known as H World Group – to expand the Ibis, Ibis Styles, Novotel, Mercure and Grand Mercure, in addition to Accor’s acquisition of a 10% stake in the Chinese group’s capital, which was definitively sold in early 2023. This partnership has recently been strengthened by an expansion of the links between their two loyalty programmes, enabling members to access a wider selection of Accor and H World hotels via their respective platforms in Europe, the Middle East and China.
In parallel, Accor has also partnered with Sunmei Hotels Group to extend the footprint of the Mövenpick signs and The Sebel, but also, and above all, the world’s second-largest group, Jin Jiang, which was one of the French hotel group’s main shareholders over the past decade before its stake fell to 1% of the shares as at 31 December last year.
Established ten years ago, this partnership has, among other things, brought the iconic Peace Hotel in Shanghai under the Fairmont brand and led to joint CSR initiatives. Further developments are anticipated, as part of its announced expansion, Accor has just unveiled a framework cooperation agreement with Jin Jiang International for a luxury hotel project in Shanghai.
In parallel, several other projects have been signed for new hotels in key markets, particularly in Hangzhou where Fairmont, Swissôtel and MGallery Collection are planned, in addition to the Sofitel Xi'an Chanba or the Pullman Shanghai Qilu. These are with different partners for some or others, such as Hangzhou Huagang Wangjing Hotel, Shanghai Qilu Industrial Group or Shaanxi Zhongchuang Silk Road Port Real Estate.
While the French group already has over 50 luxury hotels in Greater China, this segment will be the focus of its future expansion with more than 40 projects currently under development. Some are even expected soon, such as the Fairmont Dalian and MGallery Chengdu Financial City, adding to the recent openings of Sofitel hotels in Changzhou and Anji. Among other upcoming establishments, a second Sofitel Legend will appear in China, in Wuxi, following the debut over a decade ago of the Sofitel Legend People’s Grand Hotel Xian.
Whilst the Accor Group recorded a 46 % year-on-year increase in international guest numbers at its hotels in mainland China, this figure is being highlighted to demonstrate to future owners the appeal of the Accor brand to affluent travellers from Europe, the Middle East and the Asia-Pacific region.
However, Accor's strategy does not focus solely on the high-end of the hotel industry to strengthen its offering in China. Its expansion roadmap revolves around four areas: refining the high-end, as mentioned, but also deepening the mid-range, revitalising its brands and consolidating its partnerships. While awaiting others. We are eager to partner with new collaborators to continue writing the future of hospitality across this remarkable and innovative country."stated Sébastien Bazin, CEO of Accor." On each visit to China, the dizzying pace of urban development and the profound transformation of industry inspire and energise me incredibly. "
