Accor signs a strategic alliance with a Chinese operator-investor, Huazhu

3 min reading time

Published on 15/12/14 - Updated on 23/10/24

Ji Qi fondateur Huazhu & Sébastien Bazin

Prior to a press conference Monday morning, the Accor group announced a strategic alliance for a master franchise of its economy and midscale brands with group China Lodging (Huazhu) in a press release (hereafter). Accor took a 10% stake in Huazhu with a seat on the board. The combined pipeline represents 500 hotels that is confirmed for the years to come.

Accor and Huazhu Hotels Group have announced the signature of a strategic, long-term alliance to make the Chinese hotel sector a key player in China's hotel industry, bringing together more than 2,000 hotels, with a varied brand portfolio and the strongest pipeline in the country.

"This ground-breaking collaboration will leverage the strengths of Accor's global brands with a leading player in Chinese hospitality. Joining Huazhu's unparalleled local expertise with our brands will create a hospitality powerhouse which will deliver unprecedented value to both groups and to our customers," explains Sebastien Bazin, Chairman and CEO of Accor.

According to Ji Qi, founder, Chairman and CEO of Huazhu, it is an unprecedented alliance in the hotel sector. "With an extensive brand portfolio, and strong distribution and loyalty platforms, Accor and Huazhu share a lot of common values. By combining forces we can facilitate growth and attract more customers to the expanded network."

The objective of the alliance is to bring together the best of the two respective groups, combining Accor's internationally recognized brands and powerful global distribution network with the extensive coverage, local reputation and strong development capability of Huazhu Hotels Group in China.

Together the groups have more than 500 hotels in the pipeline in the region and the alliance is expected to further accelerate development to new levels and see faster expansion of Accor's brands in China.

Huazhu's hotel brands cover the full spectrum of the market from Upscale (Joya, Manxin) to midscale (JI Hotels, Starway) and Economy (Hanting, Elan and Hi Inn), making the group a perfect match with Accor. Huazhu has the strongest pipeline of any hotel group in China to fuel future growth.

Accor currently has 144 hotels in China across eight brands including Luxury/Upscale (Sofitel, Pullman, MGallery, Grand Mercure); Midscale (Novotel, Mercure) and Economy (ibis, ibis Styles). The group has been present in China for more than three decades and is the leading hotel group in Europe, Latin America, Africa and the Middle-East, as well as Australasia.

Pursuant to the transaction, Accor's economy and midscale platform in China will become part of Huazhu. Under the arrangement, Huazhu will become Accor's exclusive master-franchisee operating and developing in Mainland China, Mongolia and Taiwan for the economy (ibis, ibis Styles,) and midscale segments (Novotel and Mercure), as well as the upscale Grand Mercure brand.

Accor will continue to lead the ownership and development of all its Luxury and other Upscale brands in China, including Sofitel, Pullman, MGallery and The Sebel. Huazhu will become a minority shareholder in Accor's Luxury and Upscale business in China (10%) and will help support future development in the country, thanks to its in-depth relationships with key Chinese real estate investors.

All Accor's existing hotels in China will continue to be operated under their current international brand standards, benefiting from current global distribution and loyalty platforms, together with the added support of Huazhu's networks and domestic reputation.

They will maintain their identities, specificities and international standards, while benefitting from Huazhu's extensive on-the-ground support capabilities and local expertise.

Under the arrangement, Accor will take a 10% stake in Huazhu and will have a seat at Huazhu's board of directors.

This strategic alliance aims at accelerating expansion by leveraging Huazhu's strength in development, real estate investor relations and experience in operating a sizable hotel network in China. Huazhu plans to open 350 to 400 new hotels under the Accor brands in the next five years. (end of press release)

Accor

Accor

Hotel Group

  • Accor France
  • Offres d'emplois 46 currents job offers
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Huazhu

Huazhu

Hotel Group

  • Huazhu China
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