BERLIN — Accor is continuing its focus on conversions, especially in mature markets in western Europe where the industry has been buffeted by high interest rates.
Such a focus comes in a period of Accor’s recent history in which mergers and acquisitions are not the name of the game. Instead, the company is working to embed and integrate the brands it already has in its stable.
Speaking exclusively to Hotel News Now at the International Hotel Investment Forum, Camil Yazbeck, global chief development officer, premium, midscale and economy, at Accor, said conversions remain key for nearly every one of the 46 brands in its portfolio.
Yazbeck said that for the 23 brands he has responsibility to develop, owners say conversions are a pain-free route to enjoy advantages and upside.
“All of them are easy to convert. … We offer a multi-local approach. We are a global company, but we are also local,” he said.
He gave an example of the firm’s soft brand, Handwritten Collection, which debuted in January 2023.
“We have already opened 12 hotels. We have 25 hotels that will open this year, and we have 150 being negotiated as we speak,” he said.
Yazbeck said another thrust is to work with owners and partners on environmental, social and governance initiatives.
ESG is a force for good, but also profits, he said.
“Our job is to make sure they have all the [ESG] elements needed … because it does compress, actually, cap rates for investors by maybe 100 [basis points], sometimes 200 [basis points], on a valuation because the hotel is repositioned, it is much better within the local community and is really sustainable from all the elements,” he said.
For more of Yazbeck’s comments, watch the video above.