Sébastien Bazin, CEO, Accor, offered an update on the company and its activity in the U.S. at a press event held at its headquarters in New York.
Bazin highlighted the “significant” transformation the company has undergone over the past eight years, growing from 14 brands to 47. But now it is about the future.
“Whatever transformation we have done… is behind us,” he said. “It was eight years of hard work, and now we are in a very comfortable zone where we reap the benefits.”
The CEO added that the company’s diverse brand portfolio, strong market share and vast global network of owners and partners have positioned Accor well for continued success.
With the hospitality industry being one of the largest in the world, Bazin pointed out the significant growth in travel and tourism, which now represents more than 10% of the global GDP. He noted that demand in the sector has historically outpaced supply and will likely continue to do so.
“For the last 30 years, we’ve seen a demand growth of 3-5%, with supply growing just 1.5-2%,” he said. “That’s why companies like Hilton, Marriott, Intercontinental, Hyatt and Accor have been able to thrive.”
Accor is poised to capitalize on this growth, particularly in emerging markets. Bazin emphasized that the company’s strategy is focused on playing to its strengths in various global regions, noting that the company has had significant success outside of the U.S. and China, where local players dominate.
He added, “We have been lucky enough for the last 40 years to penetrate deeper and faster where Accor is a leader in all the other geographies in the world.”
Despite this global expansion, Bazin acknowledged that Accor’s growth in the U.S. market has its unique challenges. While the company has seen success with certain high-end properties, such as the Raffles Boston, he noted that the expansion of Accor’s luxury brands in America would remain selective.
“Raffles is ultra-luxury, and you don’t get Raffles in secondary or tertiary cities,” he said. “We’d be very happy if we have less than 10 Raffles in America,”
Accor’s portfolio in the U.S. also includes brands like Sofitel, Fairmont and Ennismore, the latter being Accor’s lifestyle brand collection.
Omer Acar, CEO, Raffles, discussed the potential for further Raffles developments in Beverly Hills, Miami and other cities, sharing that“Raffles Boston is having the best rates and the best performances within nine months of operation.”
The company also plans to expand Fairmont’s footprint with new projects in major U.S. cities and ski resorts, while Sofitel’s upcoming renovation in New York is set to enhance its presence in the luxury market.
While the upscale brands have had success in the U.S., Bazin said the company has no plans to expand in some other categories.
“We have no intention whatsoever to deploy a midscale or premium brand in America,” he said. He acknowledged that the U.S. market is already highly competitive in these segments, dominated by major American players like Hilton, Marriott and Wyndham.
Looking ahead, Accor’s strategy in the U.S. will remain focused on its luxury offerings, but he did not rule out the development of its lifestyle brands under the Ennismore umbrella, which includes U.S.-born brands such as SLS and Mondrian.
“Accor is so much of a leader in lifestyle product that we probably need an opportunity to develop further,” Bazin said.
As the company continues its expansion globally, Accor’s focus remains on cultural diversity and inclusivity, particularly as it works to hire and train individuals from varied backgrounds. Bazin proudly highlighted that Accor hires 120,000 people annually, with 70% of those workers coming from underserved communities.
“We give them a hand, and we help them embark on a career,” he said. This commitment to social responsibility remains central to the company’s ethos.
