Ibis Style drives AccorHotels Growth in Thailand

AccorHotels unabated growth in Asia Pacific is due to continue over the years to come with ambitious targets for Thailand, according to Patrick Basset, Chief Operating Officer Upper Southeast & Northeast Asia.

The group is growing organically by adding new properties around the world but also by purchasing other hotel groups and chains. AccorHotels now has 23 brands under its portfolio, following the addition of JO&JOE which was just created this past September and 25hours, of which we acquired 30% in November and investments in resort brands Banyan Tree and Rixos.

According to Basset, from a world portfolio of 4,144 hotels with 583,161 rooms (franchises & AH managed), Asia Pacific represented in the 1st Quarter of 2017 a portfolio of 763 properties with 154,541 rooms. While revenues of the group increased worldwide by 34%, it moved up by 10.6% in Asia Pacific, driven by demand in the luxury segment. As of March 31, 2017, the Group’s pipeline amounted to 951 hotels and 176,000 rooms.

In Southeast Asia, AccorHotels is particularly strong in Indonesia, Thailand and the Philippines. Indonesia remains AccorHotels largest market as the group operated 106 properties at the end of 2016. Plans for this year are  for the addition of 15 to 20 hotels with a target for 200 franchised and managed properties by 2020. In the Philippines, AccorHotels manages 50 properties. Top Southeast Asian destinations for Accorhotels in number of properties are Bali, Jakarta, Surabaya, Manila, Boracay, Singapore, Kuala Lumpur, Ho Chi Minh City, Danang, Phuket and Bangkok.

In Thailand, AccorHotels has currently a portfolio of 73 properties with 40% of this portfolio being located just in Bangkok metropolitan area. “We remain the largest international hotel operator in Thailand with a portfolio of nine brands”, told AccorHotels COO.

With 8,800 rooms, Bangkok represents 51.7% of all the 16,992 rooms in the Thai market. Phuket and Pattaya are also among Accor top destinations with respectively 17 properties with 3,809 rooms and Pattaya with 7 properties and 1,4011 rooms.

“We see a rising demand for Thailand due to the rise of Asian travellers. Asians represent now 58% of all our guests, a number up by 12% over the same period of last year”, said Patrick Basset. The Chinese market continues to fuel AccorHotels growth. Chinese guests to the group’s properties are up by 14.4% , representing a market share of almost 21%. The domestic market is the second largest for Accor in Thailand, representing 11.5% of all guests. Europe is still a very important segment generating 27.4% of all arrivals in the group properties. Total revenues in Thailand are up by 11.4% in the first quarter with the occupancy up by 2.6 points.

While AccorHotels is adding properties in all market segments (21 hotels are due to be added until 2020, representing an additional 4,450 rooms, the bulk of the growth will be for the Ibis Style Brand, a cool stylish middle hotel in the economy/lower middle class segment, which attracts as much Asian as European holidaymakers thanks to its trendy design, the conviviality of the brand, its all-inclusive concept and last but not least, its key locations.

Until 2020, 12 new Ibis Style will be added. “Our Ambition is to become the preferred Lifestyle economy hotel brand by inspiring a happy mood to the clients through creative multiple styles hotels”, added Patrick Basset. Ibis Style is already present in seven locations in Thailand (Bangkok and Phuket with two properties, Chiang Mai, Chiang Kong, and Krabi with one property). Until 2020, Chiang Rai, Khon Kaen, Pattaya, Samui, Surat Thani will be the new added destinations for the Ibis Style product while Bangkok, Chiang Mai and Phuket will see the addition of new units. Bangkok and Samui will be added this year while in 2018, Chiang Rai alone will experience the opening of three Ibis Style.