Accor says quickens Asia expansion, led by China

Accor says quickens Asia expansion, led by China
Comment E-mail Print Share
First Published: Tue, May 08 2007. 09 57 AM IST
Updated: Tue, May 08 2007. 09 57 AM IST
Reuters
Hong Kong: Accor, Europe’s largest hotelier, expects to double the revenue it rakes in from Asia in three or four years by ramping up a plan to expand across China, its top regional executive said on Tuesday.
Accor, upgrading its expansion strategy for the world’s fourth largest economy again, hopes to have as many as 160 hotels in operation or under construction across the country by 2010, up 55% from 103 now.
That will help Asia yield 10% of global revenue in three to four years, Asia-Pacific managing director Michael Issenberg told Reuters in an interview.
The firm posted a 6.6% climb in turnover to 7.607 billion euros ($10.4 billion or Rs42,363 crore) in 2006.
“Obviously, China is the major growth driver in the region. Just look at its middle class — these people are really travelling,” Issenberg said in Hong Kong.
Within three years, China should make up a quarter of the Asia-Pacific revenue pie, Australia another quarter, with a remaining 50% shared between India, Thailand, Indonesia, and New Zealand, he added.
Accor said in March it expected to exceed a previously announced plan of opening more than 61 hotels before 2010 in China.
It now has just 43 fully operational hotels in the country and 60 under development.
Global hoteliers are stepping up plans to expand in China, betting on an increasingly wealthy populace in a vast country, growth in business travel in the region and long-term economic expansion.
Rival InterContinental Hotels Plc. said in October it hoped that half of the 50,000 to 60,000 rooms it plans to build globally by 2008 would be in China — in time to benefit from an anticipated tourism boom during the Bejing Summer Games.
Comment E-mail Print Share
First Published: Tue, May 08 2007. 09 57 AM IST
More Topics: Corporate News | Sector Spotlight |