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Accor Group expanding its footstep in India

The Accor group is working toward expanding its brand in India with nine new hotels scheduled to be launched in 2016. The new hotels will operate under Accor brands: Ibis, Novotel and Grand Mercure. Accor has set itself a long term goal of operating 80 hotels in India by 2020.

Accor Group expanding its footstep in India

In an effort to expand its footprint in India, Accor hotels announced plans to launch nine new hotels in 2016. Reportedly the hotels would be launched under Accor's ibis, Novotel and Grand Mercure brands.

These imminent additions form part of the group's long term ambitions to operate 80 hotels in India by 2020.

Speaking at the time of the announcement, the senior vice president of Accor operations in India, Jean-Michel Casse reiterated his firm's growth strategy stating:

"We will soon be opening nine more hotels under different brands. We have seven hotel brands in India -- from budget hotels to luxury brands. By 2020, we will have 80 hotels with a room strength of around 10,000."

While the Accor group has, to this point, focused on the business segment with properties located in tier 1 and tier 2 cities, Casse also disclosed that, moving forward, the Group would place greater emphasis on luxury holiday destinations in India, Mr Casse explained:

"We are now going towards leisure destinations. Till now the focus was on the business segment. We now have properties in Jaipur and Goa."

Casse also took the opportunity to discuss the group's outlook for 2016 noting that the hope was that rack rates (the full price charged to customers before discounts) would increase. He went one to discuss a "pay what you want" promotional campaign at the newly launched Ibis Chennai City Centre Hotel where guests would be able to chose to pay whatever they thought their stay was worth upon checking out.

Casse denied that the campaign was a price-discovery mechanism and instead noted that a similar campaign took place at an Ibis Hotel in Delhi nearly two years ago and was a relative success by saying:

"The average realization per room during that campaign period was Rs. 2000. Some guests paid more than the rack rate and couple of guests did not pay anything."

Notable hotel brands under the Accor group umbrella include ibis Hotels, Novotel, Sofitel, Pullman, Grand Mercure and Formule 1 and Mercure.

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