Accor forges strategic alliance with China's Huazhu

Plan is to develop 350-400 new Accor-branded hotels in China

Accor hotels and China’s Huazhu Hotels Group on Monday sealed an alliance for developing 350-400 new Accor-branded hotels in China, subject to government approvals and completion of corporate restructuring.

Under the deal, Accor’s operational hotel brands in the economy and mid-scale segments in China will become part of Huazhu, also known as China Lodging Group.

Accor will buy a 10 per cent stake in Huazhu — one of China’s leading hotel groups with over 1,900 hotels — and get one seat one that company’s board of directors. Under the arrangement, Huazhu will become Accor’s exclusive master-franchisee, operating and developing in Mainland China, Mongolia and Taiwan for the economy (Ibis, Ibis Styles) and mid-scale segments (Novotel and Mercure), as well as the upscale Grand Mercure brand.

“This will leverage Accor’s strength with a leading player in Chinese hospitality,” said Accor Chairman & Chief Executive Sebastien Bazin.

This alliance is seen as a step to help both groups expand and consolidate the hospitality space in China, one of the world’s largest travel markets.

Huazhu founder, chairman & CEO, Ji Qi, said the collaboration will look forward to facilitating growth and attracting more customers to the expanded network.