You may see one fairmont, one raffles in India shortly: AccorHotels Chairman Sébastien Bazin
ET Bureau|
Updated: Oct 12, 2017, 12.37 AM IST
India may see one more Fairmont and one Raffles hotel shortly, AccorHotels chairman Sébastien Bazin told ET in an exclusive interview. He said the chain, which is Europe’s biggest and one of the world’s largest, is in its strongest phase ever and is looking to increase the share of Asia-Pacific region in the group’s profit to 40% from 15% five years ago. Edited excerpts:
How would you explain the spate of acquisitions by AccorHotels?
Accor as a group has never ever been stronger than today. And it is because we have a very healthy balance sheet with very little debt. We have never had so many brands. We have over 20 brands in the world. We are by far the largest hotel operator outside of China and the US. We are number one in Latin America, Europe, Africa and the Middle East.
We have our eyes wide open for any new digital technology initiatives which could enhance the customers’ journey and experience. We are making almost one acquisition every month and we have done that very consciously for one reason —at the end of the day you have to shift your mindset from being product brand minded to being more client minded and that shift has happened in every industry over the past ten years. So, if you really want to be client minded then you cannot blame them for using a platform like Airbnb. They are using Airbnb because it is cheaper and offers more local experiences.
Private rentals are cheaper, larger and more fun. So I can either accept that I will lose clients or I can accept that this (space) exists and that Accor can be the interface and provide that private rental experience. It’s a logical move to follow and retain my clients.
How has the $2.8 billion FHRI deal panned out and what are your plans for brands such as Fairmont and Raffles?
FHRI has been the most transformative acquisition Accor has done in the last 10 years, and at $2.8 billion, it cost a fortune. There are only 115 hotels in this portfolio but these are exceptional brands like Fairmont and Raffles. There are only 12 brands in the world with that kind of positioning. In less than 12 months we have signed 14 new contracts in the world for Fairmont, Raffles and Swissotel, which is much more than expected. Accor is probably number two after Marriott in the luxury space. We have 600 luxury hotels and we have signed 180 in addition. But we have to be extremely disciplined because many locations can’t afford to have Fairmont and Raffles and we have to retain the purity of the brands.
How is Accor faring in India?
You will probably see one Fairmont and one Raffles in India shortly. Our tie-up with InterGlobe has been working well for the past 14 years. India is an extraordinary country but a difficult country to grow in because it takes a bit more time than other countries.
How would you explain the spate of acquisitions by AccorHotels?
Accor as a group has never ever been stronger than today. And it is because we have a very healthy balance sheet with very little debt. We have never had so many brands. We have over 20 brands in the world. We are by far the largest hotel operator outside of China and the US. We are number one in Latin America, Europe, Africa and the Middle East.
We have our eyes wide open for any new digital technology initiatives which could enhance the customers’ journey and experience. We are making almost one acquisition every month and we have done that very consciously for one reason —at the end of the day you have to shift your mindset from being product brand minded to being more client minded and that shift has happened in every industry over the past ten years. So, if you really want to be client minded then you cannot blame them for using a platform like Airbnb. They are using Airbnb because it is cheaper and offers more local experiences.
Private rentals are cheaper, larger and more fun. So I can either accept that I will lose clients or I can accept that this (space) exists and that Accor can be the interface and provide that private rental experience. It’s a logical move to follow and retain my clients.
How has the $2.8 billion FHRI deal panned out and what are your plans for brands such as Fairmont and Raffles?
FHRI has been the most transformative acquisition Accor has done in the last 10 years, and at $2.8 billion, it cost a fortune. There are only 115 hotels in this portfolio but these are exceptional brands like Fairmont and Raffles. There are only 12 brands in the world with that kind of positioning. In less than 12 months we have signed 14 new contracts in the world for Fairmont, Raffles and Swissotel, which is much more than expected. Accor is probably number two after Marriott in the luxury space. We have 600 luxury hotels and we have signed 180 in addition. But we have to be extremely disciplined because many locations can’t afford to have Fairmont and Raffles and we have to retain the purity of the brands.
How is Accor faring in India?
You will probably see one Fairmont and one Raffles in India shortly. Our tie-up with InterGlobe has been working well for the past 14 years. India is an extraordinary country but a difficult country to grow in because it takes a bit more time than other countries.
