Accor creates new division for millennial brands
The French firm has announced that from 1 February former Club Med North America CEO Cedric Gobilliard will head up the new segment.
He will oversee Accor’s upcoming budget brand Jo&Joe and the company’s stakes in Germany’s boutique 25hours Hotels and French firm Mama Shelter.
The growing threat of room sharing sites such as Airbnb has seen traditional hotel giants launch new concepts to court the attention of Generation Y, who are expected to dominate the business traveller market by 2020.
Jo&Joe, which is expected to open 50 sites in the next three years, will offer classes in yoga or DIY and allow guests to stay in hammocks, yurts or caravans.
Aparthotel group The Ascott Limited is gearing up to launch its new Lyf brand complete with film projection screens and giant ball pits, while Ennismore’s upcoming NoCo concept will seek to challenge the ‘status quo’ of budget accommodation.
Sébastien Bazin, chairman and CEO of Accor, said: “Increasingly, travellers appreciate unique brands with strong personalities that are both working environments for urban nomads and places to meet people and enjoy interesting experiences.
"Accor is therefore expanding its offer in the Lifestyle segment, which is one of the sector’s most dynamic.”
The move follows a string of acquisitions by the company in 2016, including its £1.9bn purchase of The Savoy owner FRHI in July and its takeover of home rental service onefinestay in April.
