Accor aims to increase its number of rooms in India by twofold over the next three years across premium, midscale, and economy segments (PME). A senior executive revealed that the company plans to inaugurate one hotel per week in Asia (excluding China) this year within these segments. This expansion strategy is driven by various factors, including the rising number of outbound Indian travelers in Asia.
“The demograhics and the booming middle class will drive business for us and others in a major way in India, but a big part of our growth story is also the outbound travel coming out of India,” said Garth Simmons, chief operating officer, Asia PME division at Accor.
“Because China has been so closed. It hasn’t opened to previous levels, India has taken the lead in some of those Asian markets and it will grow further. So, the reliance that we had on the Chinese travellers for markets like Vietnam for instance. Indians will replace them,” he said.
“The demograhics and the booming middle class will drive business for us and others in a major way in India, but a big part of our growth story is also the outbound travel coming out of India,” said Garth Simmons.
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“Because China has been so closed. It hasn’t opened to previous levels, India has taken the lead in some of those Asian markets and it will grow further. So, the reliance that we had on the Chinese travellers for markets like Vietnam for instance. Indians will replace them,” he said.
Accor identifies itself as the third-largest foreign hotel group in India, boasting 61 operational hotels (over 11,000 rooms) and an additional 30 hotels (5453 rooms) in the pipeline.
This year, Accor plans to unveil 674 rooms in the PME segment across various locations in India, including Panjim, Candolim, New Delhi, Bhubaneswar, Mysuru, and Chandigarh.
“The pent-up demand has been enormous. India has had a wonderful 2023. Singapore, Thailand, Japan have been extremely strong markets for us too and the majority of the markets in the region have been above 2019 numbers,” said Simmons.
Simmons mentioned that Accor experienced a record-breaking year with 11 signings in India last year and anticipates that 2024 will be another significant milestone year.
“Doubling our room count over the next three years in the PME segment is an ambitious target but not impossible,” he said.
Accor manages 10 hospitality brands in India and South Asia, spanning across luxury and lifestyle, as well as PME segments. Within the luxury segment, it features brands like Fairmont, Raffles, and Sofitel. In the premium sector, Accor offers Pullman, Mövenpick, and Grand Mercure, while Novotel and Mercure represent its midscale offerings. In the economy category, Accor operates brands such as ibis and ibis Styles. The majority of its portfolio in India and South Asia falls within the midscale and economy segments.
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