French hotel management group Accor is geared for more aggressive expansion in China. The company has 30 hotels under development in China, which are scheduled to open before the 2008 Beijing Olympic Games. It is also negotiating 12 more projects.
“China is Accor’s most important market,” said Brian Deeson, senior vice-president with Accor Asia-Pacific and chief executive officer (CEO) with Accor Greater China.
“It is time for Accor to put major focus on China.”
By 2008, Accor will add 70 more hotels to its Asia-Pacific portfolio. New projects in China account for 43 per cent of those additions.
Last year, sales revenues and profits for Accor China increased by 20 and 100 per cent respectively, and Chinese contributed to 70 per cent of the hotels’ occupancy rates.
“Accor’s business (in China) was extremely good in 2005 and we expect a growth rate of 50 per cent in profits in 2006,” said Deeson.
China’s crucial outbound travel market is another reason Accor is expanding in the nation.
“China will be one of the most influential outbound markets worldwide, filling Accor hotel rooms across Asia-Pacific, Europe and United States,” Deeson said.