As the global economy continues to fluctuate, the hospitality sector is carving its own path for investors, featuring strong fundamentals and high-growth opportunities. According to JLL's 2025 Global Hotel Investment Outlook, hotel investment volume in 2025 is anticipated to surpass 2024 levels by 15% to 25%, with emerging markets such as India and Saudi Arabia expanding their influence across the industry landscape.
In an interview with Hospitality Investor, Jean-Jacques Morin, Deputy CEO of Accor, discussed the global outlook for the hospitality industry and how Accor is positioned for the shifts ahead.
Hospitality Investor: What is your take on the current macro outlook? What is the impact on hospitality?
Jean-Jacques Morin: In this volatile and evolving world, we are very lucky to work in the tourism industry. 2024 was again a record year for the Group, showcasing our biggest strength: our resilience. Industry-wide, RevPAR is being fueled by constraints in supply, and we expect this to increase, particularly in the Middle East, Southeast Asia, and Latin America. Accor’s diversification is a big advantage, allowing us to stay resilient.
The big picture is this: the middle classes in India, China, and Southeast Asia are growing rapidly, and these are notably the travelers shaping future demand. When household savings are abundant, exploring the world becomes a spending priority. Accor is establishing a strong presence in these strategic growth markets while maintaining its leadership positions.
Hospitality Investor: Accor currently has 45+ brands—isn't it too much? How do you ensure that each brand remains attractive and unique?
Jean-Jacques Morin: Accor has purposefully curated the world’s most diverse and well-balanced portfolio of hospitality brands. The days where travelers would accept a one-size-fits-all approach are long past. Travelers choose brands they connect with and spend on experiences that align with their values. Our brands have the autonomy to fully differentiate across all guest touchpoints. Through our strategy of augmented hospitality, we layer in mixed-use elements that appeal to locals—such as branded residences, coworking spaces, fitness clubs, or popular bars and restaurants. So the brands evolve in their own unique ways, relevant to their demographics and markets.
Meanwhile, ibis, Novotel, Mercure, and Pullman are some of the most venerable names in the industry. We continuously refresh their brand markers, culling where necessary, and they deliver 80 percent of our revenue. Our luxury and lifestyle brands ambitiously drive growth with extraordinary destinations and bespoke experiences. Orient Express La Minerva has recently opened in Rome, and La Dolce Vita Orient Express begins its first train journeys. In 2026, we launch the world’s largest sailing ship, the ultra-luxury Orient Express Corinthian yacht. Ennismore, which recently added the sustainably-forward Our Habitas brand, earns more than 50 percent of its revenue from F&B. The team will add 25 lifestyle hotels and 35 F&B destinations in 2025.
Hospitality Investor: What role does the premium segment play in your brand strategy?
Jean-Jacques Morin: The premium segment is one of Accor’s highest-growth segments. With 250+ premium hotels in development, our plan is to capture that sector share. Pullman has 160 hotels in operation and an average of 10 hotel openings every year. Swissôtel will soon double its network, with +40 hotels open and another +40 in development; while MGallery has +130 existing hotels and 90 more underway.
Accor's expertise in extended stay and brand residential offerings is creating new possibilities for our premium brands. Our first residences include Pullman Residences Newton in Singapore and Swissôtel Residences Bodrum Beach in Turkey. This year, we will open Swissôtel Doha Corniche Park Towers in Qatar, with its inspired mix of hotel rooms, serviced apartments, and branded residences.
Hospitality Investor: How is Accor leveraging technology to improve profitability?
Jean-Jacques Morin: We choose our technology based on providing better returns on investment to hotel owners and a smoother experience for our employees. We have partnered with IDeaS as our RMS, Opera Cloud as our PMS, and Amadeus as our CRS. Our hotels use AI to dynamically adjust pricing, and our clients use it to track food resources and reduce waste. At our contact centers, LEX by Alexa now handles a third of calls and 40 per cent of inquiries during the guest journey. Our data platform uses AI to support hyper-segmentation and personalization across the asset journey. Over time, these systems will become more deeply integrated, and our employees will become more adept at using the tools, boosting efficiency.
While we are constantly motivated to lead the industry with innovation and ambitious thinking, the primary role of any technology we employ must be to offer more liberty for our hotel teams to do what they do best—surpassing guest expectations and inspiring them to return.
Hospitality Investor: What are the most significant challenges facing development today?
Jean-Jacques Morin: The biggest issues are still financing and inflation. We are also keeping a close eye on how countries are positioned with tariffs that affect our materials and inputs. We take the issues of environmental impact and overtourism very seriously. With 80 percent of the population visiting only 10 percent of the world’s destinations, many places—such as Barcelona, Amsterdam, Bali—are introducing restrictions to development. We understand and share the concern that protecting the world’s most compelling destinations is critical to our business interests too.
Hospitality Investor: Which markets show the greatest potential for growth?
Jean-Jacques Morin: India, the Middle East, and China are the ones to watch along with Latin America and South-East Asia. In India, Accor aims to become the leading hospitality provider, and the recent infrastructure improvements give us the opportunity to deliver the kind of know-how that industry demographics can fully support. In Saudi Arabia, where Accor is the leading hotel operator, Vision 2030 will attract 150 million visitors by 2030, growing tourism’s share of GDP from 6 to 10 percent. As for China, it is still on track to become the world’s largest tourism market by 2035 and we think it can return to positive RevPAR this year. We also have our eyes on Japan—last year we doubled our network, and we have some fantastic new properties opening soon.
Hospitality Investor: What initiatives is Accor undertaking to promote responsible hospitality, and how do these efforts align with broader trends in the industry?
Jean-Jacques Morin: As a pioneer of sustainability for more than 30 years, Accor's track record in industry-leading ESG commitments is well documented. On the ground, we have over 1,000 hotels eco-certified and are on the way to 100 percent of our network by 2026. Single-use plastics in the guest experience will be fully eliminated this year. Our role at the Paris 2024 Summer Olympics and Paralympic Games led to more than 400 hotels being certified by Association Tourisme & Handicap. We plan to expand this level of accessibility across France and pursue similar certifications internationally. More than ever, hotel owners are seeking ways to create hotels with ESG value. Given our reputation and credentials in ESG leadership, Accor is a partner of choice for defining and delivering on goals that are relevant and meaningful to each hotel and its stakeholders.