Accor, a world-leading hospitality group, is set to expand its hotel presence in Japan, a move that is expected to double its current portfolio in the country.
The global hotel and hospitality corporation has entered into a new partnership with Japan Hotel Reit Advisors (JHRA), aiming to transform the Daiwa Resorts portfolio into Grand Mercure and Mercure branded hotels.
This agreement will bolster Accor’s position in Japan, with an additional 23 properties and over 6,000 rooms added to its existing portfolio. The transformation of the hotels will take place throughout 2024, after which they will operate under Accor’s umbrella.
Jean-Jacques Morin, Group Deputy CEO and CEO Premium, Midscale & Economy Division at Accor, expressed the company’s enthusiasm for this growth phase. He highlighted Accor’s ambition to provide travelers with a richer and more diverse range of experiences across Asia, driven by the region’s recovery.
Accor’s expansion isn’t confined to Japan alone. The Group also announced the debut of several new properties across Asia Pacific, showcasing its extensive network in the region. These include Pullman Singapore Hill Street, ibis Styles Bangkok Twin Towers, Novotel Nara, Fairmont Hanoi, Mondrian Singapore Duxton, and Fairmont Tokyo.
This expansion builds on Accor’s reputation as a dynamic, asset-light company. Over the past decade, it has grown its hotel portfolio by 50% and tripled its brands, shifting from being asset-heavy. As travel and tourism experience a global resurgence, Accor seeks to leverage this demand to elevate its brands further, in terms of density, presence, and scale.
The company plans to continue exploring large-scale conversion opportunities to add value to existing hotels efficiently. Independent hotel owners have been attracted to Accor’s brands due to their adaptability, ease of transition, and diverse range, with brands like Pullman, Novotel, ibis, ibis Styles, Mercure, Grand Mercure, and Mövenpick being highly conversion-friendly.
As Accor aims to double its presence in Japan, and expand further across Asia, it is set to bring new opportunities and challenges for the hotel industry. Given the resurgence of global travel and tourism, it’s a move that is likely to bring benefits for both the company and the wider sector.
