Accor shared a summary of its 2021 development activities and growth outlook for 2022 and beyond. Overall, Accor 288 hotels and resorts and 41,000 rooms in 2021. This brings Accor’s total global network, open and operating, to more than 5,300 hotels and 778,000 rooms with over 1,200 properties and 214,000 rooms in the pipeline. Accor’s global development and design and technical services teams achieved a 3 percent net growth rate in 2021, with more openings and signings than any global competitor across its historical top markets.
The company’s 2021 development performance was strong in Europe, China, and the Middle East, and the group experienced a record-breaking year of signings in North and Central America. Europe represented the top market for Accor with 153 new hotels signed, representing over 20 percent growth versus 2020. China held Accor’s second spot for signings last year, with the highest percentage growth at over 39 percent versus 2020, while the Group’s India, Middle East, Africa, Turkey (IMEAT) region increased its strategic position year-over-year. In terms of overall value, the IMEAT region is now the largest growth driver for Accor. Of note, more than 40 percent of Accor’s worldwide development projects involve the refurbishment of existing buildings rather than new builds, in line with the company’s environmental, social, and governance (ESG) commitments.
“In 2021, we continued to reinforce our leadership position in the regions where we have historically led the competition, while building strong momentum in the key markets of North America and China,” said Agnès Roquefort, global chief development officer, Accor. “We are projecting an even higher pace of growth this year and are pleased to have resumed signing new hotels at a rate of one per day. We are extremely grateful to our development teams around the world who are doing a fantastic job of pushing projects forward, exceeding targets, and opening new doors despite ongoing supply chain challenges, geo-political tensions, stringent health and safety regulations, and post-pandemic recoveries which continue at a varied pace.”
2021 Developments
Accor’s development team achieved several milestones in 2021.
In North America, 2021 brought 11 newly signed developments, further reinforcing the group’s position as the second largest luxury operator in North America. Deals for the region included the 550-room Fairmont Orlando and a yet-to-be-announced Fairmont project, both opening in 2025; the Hotel Belmont Vancouver—MGallery Hotel Collection in late 2021, and Mayaliah Tulum Hotel & Residences—MGallery Hotel Collection, opening in 2024; and two Novotel developments in Mexico, both slated for 2023.
In China, new project signings reached a high—leading to more than 520 hotels currently operating in the region and an additional 350 under development. The first destination was signed for Accor’s newest luxury brand, Emblems Collection, for the development of a flagship hotel in Guizhou province: Guiyang Art Centre Hotel, Emblems Collection.
The first two Orient Express destinations in the world were also announced in 2021, with the signings of Orient Express Grand Hotel de la Minerve in Rome, Italy, and Orient Express Diriyah Gate in Riyadh, Saudi Arabia. Complementing the hotel projects, the luxury brand also announced a rail tourism project in partnership with Arsenale S.p.A. in December, Orient Express La Dolce Vita. Welcoming passengers in 2023, the exciting endeavor includes six trains that will travel from Northern to Southern Italy, across 14 regions and beyond, including three international destinations from Rome to Paris, Istanbul, and Split.
Anothermilestone included the first Banyan Tree in the Middle East, Banyan Tree Doha La Cigale Mushaireb in Qatar, which made its official debut in 2021. Continuing the brand’s momentum in the region, a second location will follow later this year, Banyan Tree AlUla in the Asher Valley of Saudi Arabia.
Design concepts were key to Accor’s strength in economy and midscale brands last year, such as the introduction of the first ibis Square concept hotel at ibis Timisoara, Romania. The first Novotel RF Studio guestroom reflecting the brand’s vision for hotel design debuted at Novotel Dubai Jumeirah Triangle, UAE; while Novotel Mexico City Toreo proudly opened the first Novotel showcasing the Sundukovy Sisters guestroom design concept.
Brand Diversification
Accor’s luxury and premium offerings drive value of the group’s development portfolio, while its economy and midscale segments continue to drive volume. This balance is key to Accor’s development model, providing the group with the power and flexibility to seize growth opportunities.
Versatile brands such as greet, ibis Styles, Mercure, and Mövenpick represented 48 percent of signed rooms in 2021 (182 hotels and 27,500 rooms, up 54 percent versus 2020) and are anticipated to generate significant interest again in 2022. Also contributing to the growth metric were Accor’s two collection brands, MGallery Hotel Collection and Emblems Collection. Both are designed with the needs of independent and boutique hotel owners in mind, providing brand standards that are flexible, light, and respectful of the hotels’ identities while allowing access to the power of Accor’s sales, distribution, and loyalty platforms.
Looking ahead to the remainder of 2022 and early 2023, Accor’s development and operations teams will open the doors at a myriad of new flagship properties throughout the group’s brand portfolio, including Sofitel Legend Casco Viejo Panama; Raffles Boston Back Bay Hotel & Residences; Raffles London at The OWO; Raffles & Fairmont Doha; Raffles at Galaxy Macau; Sofitel Barcelona Skipper; Sofitel Shanghai North Bund; Rixos Doha Qetaifan Island; The Admiral Hotel Manila—MGallery; Pullman Orchard Singapore; Novotel Mexico City Insurgentes; and Novotel Liverpool Paddington Village.
Lifestyle Hospitality
Accor plans to triple its number of lifestyle hotels by 2023. The group’s position in lifestyle hospitality is led by Ennismore, a joint venture in which Accor holds a majority shareholding. Ennismore is a global collective of 14 brands, with 90 operating properties and a further 160 more in the pipeline.
Notable growth and development highlights from Ennismore in 2021 included the signings of a Morgans Originals Legacy in Miami, USA; The Hoxton, Brussels in Belgium; Hyde Paradox Hotel London City, UK; SO/ Maldives; and TRIBE Phnom Penh Post Office Square, Cambodia. Openings in 2021 included SO/ Sotogrande, Spain; SLS Dubai & Hyde Dubai Business Bay, UAE; Mondrian Shoreditch London, UK; 25Hours Florence and The Hoxton, Rome, Italy; Mama Shelter Lisbon, Portugal; and JO&JOE Vienna, Austria.
Ennismore openings in 2022 include Maison Delano Paris; three openings for The Hoxton with Barcelona, Shepherd’s Bush and Brussels; SO/ Paris; 25hours Copenhagen; Mama Shelter Paris La Défense and Dubai; SLS Puerto Madero; and Mondrian Singapore Duxton.
Gaurav Bhushan, co-CEO of Ennismore said, “Lifestyle is one of the fastest-growing segments of the hospitality industry, and we’re seeing that through increased demand for our brands, as we quickly bounce back to pre-pandemic levels. In 2021 we opened 15 new hotels, and we’re set to almost double that this year with strong growth in all regions, especially Europe, Americas, and the Middle East. There’s no doubt lifestyle brands are recovering faster from the impact of the pandemic, helped by strong local and domestic demand, in particular for our restaurants and bars.”
Branded Residences
Accor’s portfolio of branded residences is comprised of 35 existing properties operating under 16 brands, 20 newly signed projects in 2021, and 90 branded residences in the pipeline (16,300 units). According to Savills International Development Consultancy, the branded residential sector has grown 230 percent over the past decade, adding more than 50,000 units across 356 schemes.
Accor’s branded residence projects range from the luxury market to premium and midscale offerings, with an increasing number lifestyle-driven communities. In 2021, Accor launched a website, allowing buyers and browsers to explore Accor’s portfolio of private residences around the world, including residences already in operation and those in development.
Residential development highlights from 2021 included the Mondrian Residences Gold Coast, Australia, and the new sales record of £49 million for a penthouse at The OWO Residence by Raffles, London, United Kingdom. New Accor openings in the branded residences space in 2022 include Raffles Boston Back Bay Hotel & Residences; Fairmont Century Plaza Residences in Los Angeles, United States; MGallery Residences MontAzure Lakeside in Thailand; and Pullman Residences Newton, Singapore.
Upcoming Year
Overall, Accor plans to open more than 300 new hotels and resorts in 2022, and has a global development and growth pipeline that is positioned for a return to travel industry growth and recovery. Moreover, with luxury and premium segments now representing close to 40 percent of future openings for Accor, and travel industry fundamentals improving, the group expects to see strong growth in fee generation over the next several years.
“Development is the engine that drives Accor and our ability to offer the most diversified brand portfolio in the world allows us to stand out in the market,” added Roquefort. “Throughout 2021, hoteliers turned to us because of the significant revenue boost that Accor’s powerful sales, distribution and loyalty platforms provide, and their satisfaction comes in knowing we’ve got a brand that will comfortably match their property, their guest profiles, and their unique, local aesthetic. This is where we will continue to focus our efforts in 2022, aiming to deliver the right product to the right market, with the right partner, every time.”
