Investment

The world’s best growth story is still China

Accor is ambitiously expanding amid a resilient and robust hospitality market

Accor is optimistic about China’s economic future and in particular, the travel and tourism sector, which is looking very buoyant. China's recent efforts to support the economy and boost consumer demand have been moving the country in the right direction and keeping it on track to become the world's largest tourism market by 2035.

“Those looking for ‘the next China’ will soon realize, it’s still China. There is no other China,” said Mr. Rosen. “China continues to dominate as the world’s biggest and best growth story.”

One of the hardest hit sectors during the pandemic was travel and tourism, yet the industry has rebounded well. Mr. Rosen notes that among Chinese travelers, there is robust demand for both domestic and international travel, particularly among affluent travelers and younger generations. Many are rediscovering their favorite places, looking for new experiences in smaller cities, exploring less traditional destinations, and taking a greater interest in planning customized journeys.

Earlier this year, Accor Greater China unveiled its 700th hotel, with the opening of Sofitel Shanghai North Bund – a spectacular 25-story landmark and the newest flagship of the prestigious Sofitel Hotels & Resorts brand. Achieving its 700th hotel this year was a significant milestone for Accor – and for the hotel industry – as a solid indication of a return to progress.

“There is no question that the challenges of the past few years have strengthened us – broadened our vision on how we deliver hospitality, and reaffirmed our commitments to both sustainable tourism and investments in technology,” said Mr. Rosen.

In 2024, Accor anticipates opening more than 100 hotels across the region and is tracking toward 150 signings of new development projects. While ambitiously expanding its network, Accor continues to anticipate the evolving interests of Chinese travelers with innovative digital capabilities and the exclusive members’ experiences of Accor’s lifestyle loyalty platform, ALL - Accor Live Limitless. With sustainability as a core value, Accor is continuing to introduce more eco-friendly travel options for Chinese travelers while delivering on its commitment to impactful ESG actions.

In addition to Sofitel Shanghai North Bund, other high profile hotel openings by Accor in the past twelve months have included the spectacular Raffles at Galaxy Macau and the company’s first lifestyle hotel in the region – Mondrian Hong Kong – part of the Ennismore collective in which Accor owns a majority share. Before year-end in 2024,  Accor will open the doors at Fairmont Xiamen; four MGallery Collection hotels in Chengdu, Shenzhen, Wuxi and Nanjing; Pullman destinations in Taizhou and Guizhou; six Grand Mercure locations, including Wuhan, Hangzhou, and Kunming, as well as Sanya Yalong Bay where the brand will open alongside a new Swissôtel. Meanwhile, Accor continues to introduce new hospitality brands to China. The first Mövenpick by Accor has opened inQingdao and recently in Nanjing, and we expect to open additional destinations in Chengdu, Xuzhou and Suzhou by year end. Similarly, JO&JOE has opened its first Chinese destinations, with multiple new addresses to follow. Some of the most anticipated hotel openings in 2025 include two Sofitel hotels at Xi’an and Guiyang, as well as two Emblems Collection hotels in Hangzhou Westlake and Guiyang.

“As a hospitality leader, Accor seeks to shape and drive forward the whole industry, through creativity, commitment, and collaboration to inspire ambitious thinking and realize new opportunities,” said Mr. Rosen. “One area where we are really driving the industry right now, is multi-faceted hospitality, with mixed developments that might combine two or more hotel brands, branded residences or extended stay offerings, lively F&B, and coworking and wellness facilities. We look for ways to maximize value for our investment partners, while enhancing the brand experience we deliver to hotel guests, visitors, and the local community surrounding the hotel.”

A recent example is Accor’s new Grand Mercure Chengdu East – the brand’s first hotel in the world to introduce an extended stay offering, known as Grand Mercure Living. Meanwhile, in the up-and-coming community of Changzhou High Speed Rail New Town, Accor has a French luxury hospitality experience in the works, with Sofitel Changzhou; complemented by Novotel Changzhou and a Novotel Living Changzhou extended stay hotel. This inspired mix of luxury, midscale and extended stay hospitality options will be ideally suited to the up-and-coming business community of the area.

“At Accor Greater China, we are fortunate to have a deeply knowledgeable and experienced team that enables us to provide an unrivaled level of care and service to our hotel owners, our partners, and our guests,” said Mr. Rosen. “This is what drives our success and keeps us pushing the boundaries and creating exceptional hospitality experiences across our portfolio of outstanding brands.”

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