
At the l'ITB Berlin, the Accor group revealed its offensive strategy for upscale development to surpass 300 establishments under the Sofitel, Pullman, MGallery and Grand Mercure brands to 400 establishments around the globe.
«Europe is now making itself head on the luxury/upscale market. Our brands combine the highest international standards without interpretation of French luxury», explains Yann Caillère, General Managing Director in charge of Worldwide operations at Accor. "Our ambitions for our brands and their network are immense, and we are very well positioned to grow rapidly in this market."
The French group adopted a segmented approach based on four brands that are each intended to reach a different market, including internal segmentation. Sofitel, for example, offers Legend for its finest trimmings, So by Sofitel for a more contemporary approach, and Sofitel for the rest of the market. Likewise, the Grand Mercure concept offers local brands when the market demands it: Mei Jue in China and now Maha Ciptha in Indonesia.
The group wants to profit from its leader position gained in Latin America, Africa and the Middle East, and in Asia Pacific, to grow its presence in emerging markets. Accor is in a strong position to respond to growing demand by clients from emerging markets “in search of a different luxury/upscale hotel experience.”
Today, 42 % of the group's luxury/upscale hotels are located in Asia-Pacific, and 35 % in key European cities. Development is entirely in "asset-light", with a majority of management contracts, the group's favoured model for the luxury/upscale segment. The focus will be on emerging markets including Latin America, the Middle East, and Asia Pacific which alone accounts for over 60% of the pipeline (mainly in China, Vietnam and Indonesia). The segment recorded a 15% increase in sales volume in 2012.
MGallery is announcing its upcoming openings with the Hotel Carlton Lyon and the MGallery Nusa Dua in Bali, before summer, reflecting the two priority countries for development.
Pullman will reinforce itself in Europe with a key presence in Belgium and Russia, which followed openings in London and Jakarta. In Paris, the five establishments under the brand are undergoing renovation of their public spaces and guestrooms until 2014.