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AccorHotels see good opportunity in hotel brand conversions in India

IANS  |  Chennai 

Global hospitality major AccorHotels is looking at conversions -- taking up management of existing hotels run under different brands -- to expand its presence in apart from having new properties in its fold, said a senior official here on Friday.

He also said that the group would add two more hotels here and take the total number of properties in its fold in to 55 hotels by the end of this year.

In five years' time, 30 more hotels will be added by the group adding 5,000 more rooms under various hotel brands, he added.

"There will be more demand for conversions in the hotel sector as the world is moving towards digital and distribution would also become digital," Jean Michel Casse, Chief Operating Officer -- and South Asia, told reporters.

He was here to formally launch a combo hotel -- two different brands of hotels inside the same compound -- Novotel and ibis.

"We have options to offer to owners of existing hotels," Casse said.

AccorHotels has signed up management contract with the owners of Surya Palace Hotel and rebranded the same as Grand Mercure Vadodara Surya Palace.

Casse said a hotel in South Goa will be converted to Novotel brand.

"With competition from global brands coming in, it will be difficult for standalone hotel brands to continue to hold on to their existing brand position," Rajesh Gopalakrishnan, General Manager, Grand Mercure Vadodara Surya Palace, told IANS.

He said that post-relaunch, the property is maintaining its occupancy and business levels.

"Conversion is not only for business growth," Gopalakrishnan stressed.

According to Casse, AccorHotels will also bring in its other brands like the luxury resort brands owned by Banyan Tree group.

"Goa is a good opportunity for resorts of Banyan Tree," Casse said.

Speaking about the combo brand rationale, Casse said the combo hotel here will be the third in for AccorHotels after Delhi (Pullman-Novotel) and Bengaluru (Novotel-ibis).

"It is very difficult to measure the benefits of combo hotels. But it certainly saves around 15 per cent of the capital expenditure with common infrastructure facilities-like air conditioners, laundry, kitchen," Casse said.

According to Casse, normally the hotel brand which is economical will have higher number of rooms as compared to other hotel brand in the combo.

AccorHotels on Friday opened Chennai's first combo hotel property Novotel and ibis Chennai OMR located on the Old Mahabalipuram Road (OMR).

The Novotel has 153 rooms while ibis Chennai OMR has 189 rooms.

"When there are corporate groups, it is easy for us to offer different class of rooms to the officials based on their eligibility," Danies Chao, Area General Manager, Novotel & ibis Chennai OMR and Novotel Chennai-SIPCOT said.

Officials said the two new properties will cater to the needs of leisure and business travel segments.

According to Chao, the two properties as a part of special opening fare, offers the scheme 'stay for three nights and pay for two nights'.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 10 2017. 16:52 IST
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