Accor plans to open 30 new hotels in India over the next 3 to 5 years

Industry Watch | April 3, 2024 | News

Accor Sébastien Bazin

Sébastien Bazin, the chairman and CEO of Accor, Europe’s largest hotel chain, has indicated that India can anticipate the emergence of additional upscale hotels from esteemed brands such as Fairmont, Raffles, and Sofitel. Additionally, he noted that other brands within Accor’s luxury and lifestyle division are poised to enter the Indian market in the forthcoming years.

Accor plans to open 30 new hotels in India over the next three to five years, adding approximately 5,500 rooms. Despite the fact that Sébastien Bazin already operates 62 hotels in India, totaling approximately 11,000 rooms, he believes this is insufficient.

Sébastien Bazin, Group Chairman & CEO, Accor said, “I have always had great faith in India. However, while we operate 2,000 hotels in France, we have fewer than 100 hotels in India. Considering the vast size of the country, we should ideally have over 1,000 hotels here. I understand this will take time, but it’s a vision for the future that will be worthwhile. As we expand, we will require more Accor employees across various levels and will need to empower them with greater decision-making authority.

We are fortunate to have the best partner anyone could hope for in Rahul Bhatia of IndiGo airline. I should be visiting here every quarter to deepen my understanding of the country and to address any existing challenges. It’s uncommon to find a country with the world’s largest population that has been the fastest-growing for the past five years, and likely to maintain this pace for the next five years, coupled with a burgeoning middle class, improved access to education, and advancements in technology and telecom. India boasts rich heritage, archaeology, and diverse geography stretching from the Himalayas to the Indian Ocean. It offers everything one could desire, backed by a visionary government.”

Bazin mentioned that Accor, set to introduce its Raffles Jaipur hotel this year, is also contemplating bringing luxury brands like Orient Express to India. However, he acknowledged that challenges in hotel development timelines persist, despite a more favorable fiscal environment.

He further added, “It is likely the most historic brand in the hospitality sector, with a legacy of about 140 years. It’s more than just a product; it embodies a sentiment. We are expanding into trains, yachts, and hotels under this brand. Orient Express holds significant potential in India. Raffles, on the other hand, represents elegance, heritage, and palatial luxury, making it one of our most promising brands.”

Accor established its luxury and lifestyle division about 18 months ago, boasting around 550 hotels and 24 brands, including notable names like 25hours, Delano, Mondrian, Mama Shelter, and MGallery. Last year, in partnership with the Hinduja Group, Accor unveiled Raffles London at The OWO, which stands as London’s most lavish hotel.

Accor added 291 hotels with 41,000 rooms to its portfolio last year. Bazin stated that the company plans to open a comparable number of hotels, amounting to around 48,000-50,000 rooms, this year. Additionally, the company recruited 120,000 new employees last year.

Despite the fact that Sébastien Bazin, Group Chairman & CEO of Accor already operates 62 hotels in India, totaling approximately 11,000 rooms, he believes this is insufficient.

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