"Accor Announces Ambitious Plan to Launch 30 New Hotels in India Over the Next 3-5 Years"

French hospitality giant Accor is gearing up for an ambitious expansion in India, with plans to introduce 30 new properties within the country over the next three to five years. This strategic move is aimed at capitalizing on the immense growth potential in the Indian hospitality market, as confirmed by Puneet Dhawan, Senior Vice President of Operations for India and South Asia at Accor.

Currently, Accor operates nine distinct brands in India, out of a total of 40 in its global portfolio. In response to the evolving market dynamics, the hotel chain is open to the possibility of introducing more brands in India, catering to diverse customer segments.

Dhawan shared insights into Accor's expansion strategy, stating, "Currently our pipeline is about 30 signed contracts...These are expected (to be operational) in the next three to five years." These upcoming properties will be developed by local partners and operated by Accor under its existing nine brand offerings in India, including renowned names like Fairmont, Novotel, Mercure, and Pullman, among others. The investments required for these new properties will be carried out by the partners involved.

Several cities have been earmarked for the development of these new properties, including New Delhi, Chandigarh, Mohali, Bhubaneswar, and Amritsar.

In addition to expanding in major urban centers, Accor is actively exploring opportunities in tier II and III cities, where a surge in demand and room rates has been observed post-COVID-19.

Dhawan explained, "I think the pandemic kind of opened these tier two, tier three markets because the rates that they were able to demand are actually higher than the cities like Delhi and Mumbai, and that has encouraged developers or investors to develop in these local markets."

Addressing the potential for introducing more Accor brands in India, Dhawan stated, "Currently nine brands are present in India out of the 40-plus (global) brands, but the scale and the diversity India has and the growing middle class or the growing spending power in India, we believe there's a market for many more of Accor brands that could be introduced into India." These additional brands might include lifestyle options or globally recognized names like Swissôtel or Mövenpick.

Dhawan affirmed Accor's readiness to expand its brand portfolio even sooner, depending on the circumstances. He mentioned the possibility of introducing conversion brands, such as the Handwritten Collection, which focuses on elevating existing hotels to international standards and provides access to Accor's loyalty program and other benefits.

Regarding the potential of the Indian hospitality market, Dhawan pointed out, "India today has about 1,60,000 branded hotel rooms, (on the other hand) Dubai has 165,000 rooms and growing. So that tells you how underpenetrated the hospitality landscape is in India and there's so much opportunity across the brands."

Currently, Accor operates 61 hotels in India under its nine brand offerings, comprising approximately 11,500 operating rooms. The company's expansion plans reflect its confidence in the Indian market's growth potential and its commitment to providing diverse and world-class hospitality experiences to a wide range of customers.

HBL