Accor maintains steady pipeline as it restructures

by | 16 Aug 2022 | Chains

Major global hotel group Accor is keeping a stable rate of new hotel developments as it evolves its structure to capitalise on its recent transformation.

At the end of June 2022, the company collectively had a pipeline of 1,215 hotels and 212,000 rooms. This is almost identical to its figures at the end of 2021, when it was 1,218 projects (a slight drop of 0.2%) and 214,000 rooms (nearly 1% fewer).

Slowing openings

Hotel opening rates have slowed however, as during the first half of 2022, Accor opened 85 hotels, representing 11,700 rooms, i.e., net system growth of 1.8% in the last 12 months. Whereas in the entirety of 2021 Accor organically opened 288 hotels, representing 41,000 rooms, resulting in a net growth in the network of 3% over that 12-month period.

At end-June 2022, the group had a hotel portfolio of 777,945 rooms, a slender rise of 0.03% from the end of 2021, when figures were 777,714 rooms. In terms of hotel amount, this increased by 0.04% over the same period, from 5,298 to 5,300. In the luxury and upscale segments, Accor increased its portfolio by three properties, from 882 to 885 hotels.

For 2022, Accor confirmed its forecast of net unit growth in the network of around 3.5%.

The TOPHOTELPROJECTS database currently details 587 upcoming Accor hotels. Notable developments include Novotel Überseequartier-Hamburg Süd adding 163 rooms to the portfolio in Q1 2024; Sofitel Doha West Bay, a 420-key property opening in the Qatari capital in Q1 2023; and Pullman Nairobi Westlands, a 334-room development due to open in Kenya also in Q1 2023.

Restructure and transaction

The latest results come as Accor announced it is restructuring into two divisions to accelerate its growth and continue to improve its profitability.

From 1 October 2022, the two arms will be: Economy, Midscale & Premium, comprising the ibis, Novotel, Mercure, Swissôtel, Mövenpick and Pullman brands; and Luxury & Lifestyle, bringing together Accor’s luxury brands as well as the group’s lifestyle entity, Ennismore.

For the latter brand, Accor is to sell a 10.8% stake to a Qatari consortium for a total amount of €185 million. The envisioned deal also includes the preliminary contribution to Ennismore of the group’s stake in Rixos, a hotel operator specialised in ‘all-inclusive’ hotels in the Middle East, and Paris Society, an upscale player in the restaurant, events and entertainment sectors.

Accor will retain a controlling stake of 62.2% in Ennismore, with the remaining shares held by Sharan Pasricha, founder and co-CEO of Ennismore, and the new incoming investors. Closing is expected to occur in the second semester of 2022.

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