Accor reveals ambitious UK expansion plans

The hotel group yesterday announced a deal to open two new hotels in central London under a franchise agreement with Criterion Capital Group.

Speaking to BigHospitality, Accor’s UK managing director Thomas Dubaere said the new additions will bring the group’s total number of UK hotels to 208 across 10 brands – with plans to reach 300 UK properties over the next four years.

Dubaere said that around 90 per cent of the new hotels will be opened under a franchised or managed model, with the rest either acquired or built by Accor.

“The UK is a country that has a high potential and growing number of visitors, and the way to grow faster with your brands is through franchise and management agreements,” he explained.

“About 60 per cent of the hotel market in the UK is still non-branded or independent so there is a large potential to grow on the franchised model.”

In order to attract independent, non-branded hoteliers, Accor will focus primarily on its economy Ibis Styles brand and mid-scale Mercure brand, both of which are non-standard brands.

“In non-standard brands, each hotel retains its own personality, which is linked to the DNA of the brand,” he said. “Investment wise for hoteliers, it is less expensive than going for a full standardised brand.”

However, Dubaere added that Accor will also continue to expand its mid-scale Novotel brand, and its upscale brands MGallery and Pullman.

He estimated that around 70 per cent of the new hotels will be located in the UK provinces, with the remaining 30 per cent opening in and around London.

London hotels​

Accor’s latest two central London additions are the 583-bedroom Ibis Styles Piccadilly Circus, located within Criterion Capital’s world famous Trocadero complex, and the 80-bedroom MGallery Leicester Square.

Due to open in 2017, the ibis Styles Piccadilly Circus will offer economy accommodation in one of London’s key tourist hotspots, with an all-inclusive package that offers room rates, breakfast and internet access.

The upscale boutique MGallery Leicester Square will open in Criterion Capital’s Victory House, overlooking the famous square, at the end of 2016.

“These hotels are in very iconic locations in what is pretty much the most visited city in the world,” Dubaere told BigHospitality.

“As we speak, there is no hotel of that size in that location offering affordable rates for a large public, and it is a great mix to have an economy brand and an upscale brand in pretty much the same area, appealing to both leisure and business travelers.”

Both properties will be developed by Criterion Capital - the largest landlord in the Leicester Square and Piccadilly Circus corridor and an existing Accor partner.

Asif Aziz, from Criterion Capital, said: “We are pleased to work with Accor. These two hotel projects are part of our strategy for Leicester Square and Piccadilly Circus and demonstrate the ongoing attraction of Leicester Square and Piccadilly Circus to the capital’s visitors."