Asset light mantra for Accor

The French hotel operator that owns 44 per cent of hotels in its global kitty is eyeing the reduction of ownership stakes to 20 per cent in the coming years.

MEGHA PAUL To

consolidate its position as the global market leader in the hospitality industry, French hotel operator Accor has decided to go asset-light in the near future. Globally, the trend for the entire industry is to go for asset-light model of expansion. Out of the current 44 per cent of hotels that Accor owns in its global portfolio, it will reduce the ownership stakes to about 20 per cent in the next two-three years. This was revealed by Michael Issenberg, Chairman, Asia Pacific, Accor.

While talking about the recent downloading of stakes in the Formule1 in India, Issenberg revealed, “We develop assets and then sell, this is our global strategy. We are not in the business of holding assets. In our ongoing strategy around the world, we recycle our capital. We develop assets and then sell. Especially, in economy brands such as Formule 1, where we have a lot of expertise and products are specific, we invest initially and then become partners,” he added.

The process will be facilitated by the opening of new hotels and foray into newer destinations.

It will take the total number of rooms to 4,000 by the end of this year and to 6,500 by the next year with the addition of 11 new hotels by 2013,” Issenberg said. The company that runs hotels under the Sofitel, Pullman, Ibis and Formule 1 brands has committed $250 million of investment for expansion of its business here. Accor also announced its foray into Bangladesh, the company’s 17th territory in Asia Pacific with the signing of two hotels in Dhaka and Chittagong.