Accor currently has four hotels in the U . S . within its PME division : Ala Moana Honolulu by Mantra ( p . 34 ), Novotel Miami Brickell ( p . 34 ), Swissotel Chicago ( p . 36 ), Pullman Miami Brickell ( p . 36 ). |
Mantra Honolulu |
Novotel Miami |
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WE HAVE EVERYTHING WE NEED RIGHT NOW . THE NEXT STEP IS TO GET THE JUICE OUT
– JEAN-JACQUES MORIN , GROUP
DEPUTY CEO AND ALSO CEO
OF THE PREMIUM , MIDSCALE &
ECONOMY DIVISION
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which is still nascent in markets outside the U . S .
“ There are places , like the United States , where the hotel business is so mature that everybody speaks franchise ,” Morin said . At the same time , in European and APAC pockets , management contracts remain customary , but that is changing . Australia is a good example he said . “ It ’ s getting more and more franchise contracts .”
Expansion through franchise agreements is typically an approach by lodging companies who want to grow bigger , faster . “ As long as you can adapt the cost base , it ’ s one way by which you can develop faster ,” Morin continued .
He offered that franchising would increase in the PME set , referring to it as an “ accelerator .” It ’ s a little less than 50 % of rooms now and less in fees , at around 30 %, Morin said , but it ’ s his hunch that it
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will grow . Maybe not in the U . S ., however . Within the PME division , Accor currently has only four hotels in the U . S .: Novotel Miami Brickell , Pullman Miami Airport , Swissotel Chicago and Ala Moana Honolulu by Mantra . According to CoStar Group data , 80 % of all the branded hotel room stock in the U . S . is controlled by six companies : Marriott International , Hilton , InterContinental Hotels Group , Best Western Hotels & Resorts , Choice Hotels International and Wyndham Hotels & Resorts . Independent hotels account for around 1.6 million rooms in the U . S .
Why can ’ t Accor edge in ? It ’ s an ongoing question , noted Morin . “ Is there an ask for our brands in the U . S .?” he said . “ Absolutely .” But like breaking into Hollywood isn ’ t easy , the same goes for hotel brands .
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“ There is already such density in the U . S . market for the brands that already exist that it is difficult to open a brand ,” Morin said .
Accor has tried it before , but it was short-lived . In 2017 , it opened ibis Styles New York LaGuardia Airport , but the hotel closed after a short stint . Accor had some success in New York with Novotel New York Times Square , but it closed in 2021 . Part of the issue impacting why Accor hasn ’ t gone harder in the U . S . with its down-chain brands is because it can ’ t do it piecemeal . It would need to be done at a larger scale . “ You can ’ t go and have one , two or three hotels ,” Morin said .
THE L & L APPROACH Going big is key and Accor is candid about its difficulty in U . S . expansion , specifically with its PME brands . “ It ’ s a much tougher play for us , but it
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34 hotelsmag . com May / June 2024 |