3 hotels in 2020: Accor

Accor began 2019 on a stellar note and is looking forward to continue expansion this year as well. The group is targeting a 12 per cent RevPAR growth in 2020.

Nisha Verma

According to Jean-Michel Cassé, Chief Operating Officer – India & South Asia, Accor, 2019 was a great year for the brand in India. “We started the year with two important openings—ibis Kolkata Rajarhat and Mercure Goa Devaaya Retreat. We also launched the Grand Mercure Gandhinagar GIFT City and announced ALL-Accor Live Limitless, our lifestyle loyalty programme that caters to a global audience of over 54 million members,” he says. For 2020, informs Cassé, the group will launch the much-awaited Raffles Udaipur, Novotel Mumbai International Airport, as well as ibis Mumbai LBS Road. The Indian market continues to be very important for Accor. Cassé says, “As demand outpaces supply, there is a clear indication that hotel occupancy, ARRs and RevPAR will see an increase this year, which will continue for the next three to four years. A major challenge this year, however, will be to increase the ADR. Also, room night demand will grow in major business cities and leisure destinations.”

Hotel occupancy, ARRs and RevPAR will see an increase; a major challenge, however, will be to increase the ADR

With an asset-light and ‘managed’ model across its portfolio of brands, the COO sees the strategy as one that creates a more nimble and agile company that has a strong balance sheet. “It enables us to take advantage of merger and acquisition opportunities as they emerge, which obviously has led to a different mindset within the organisation, which is more entrepreneurial and less risk averse,” he shares. The group has now budgeted for a 12 per cent RevPAR growth for 2020 – like for like – which can be attributed to a greater contribution from increase in rates rather than volume.