Accor Puts Smart Money on China

Anticipating major growth in China, France-based hotel chain Accor has plans to more than double its hotels in China and Hong Kong to 50 by 2007.

Accor stated that China currently contributes less than 1 percent of its profit and within five years, it expects it raise it to at least 5 percent of all revenue, according to Accor Asia Pacific managing director Michael Issenberg.

By 2007, the company plans to have 50 properties on mainland China, up from 24 currently, including more than 20 hotels and resorts bearing its five-star Sofitel brand. The company is planning expansion of its low and medium-priced brands.

Accor said that growth in travel in China and Hong Kong is propelled by backing of strong economy, the increase in the number of approved destination status countries, and the growth in airline services, especially low-lost air carriers.

As part of its expansion, Accor will also open at least eight of its top-tier Sofitel hotels under management contracts in China this year, Issenberg said.

In China, Accor will soon launch Sofitel Xian, part of a three-hotel complex in Renmin Square in the heart of Xian. Also, later this year Sofitel hotels will open in Xiamen, Suzhou, Shi Jia Zhuang and two in Nanjing. In addition to the Sofitel openings there would also be new Novotel, Mercure and Ibis hotels opening across China this year.