Accor to move away its portfolio from Europe, “unlimited” capital to expand into Asia
Novotel Dakar, an Accor hotel. / Courtesy Accor's Facebook page.
Diversifying away from Europe is the way to go for Accor, and its brands are known in Asia and Middle East, more so than say United States. It sold off Motel 6 earlier this year in U.S. and looking for more mid-scale and upscale brands there.
Excerpt from Reuters
Accor, Europe’s largest hotel group, is seeking to add around 5,000 rooms annually through acquisitions worldwide as it shifts focus away from weaker markets in Europe.
CEO Denis Hennequin said he had effectively unlimited capital available along with 1.7 billion euros in credit and would for example take any opportunities that arise to expand its midscale and upscale brands in U.S.
He said Accor saw demand growing in the Asia-Pacific area and planned to shift its focus toward that region in the next three years…of the 110,000 rooms to be added, around 50 percent will be in the Asia-Pacific region, 20 percent will be in emerging markets including the Middle East and Africa, and 30 percent in Europe.