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Accor's Lifestyle Platform Serves as Launchpad for North America Hotel Development

Executives See Room to Grow 21c, SLS and Mondrian Brands Under Ennismore

LOS ANGELES — While the COVID-19 pandemic has slowed Accor's development, the company is moving along with a "tremendous" amount of projects in its pipeline, said Heather McCrory, CEO of North and Central America for Accor.

In a video interview with Hotel News Now at the Americas Lodging Investment Summit, McCrory said her company has been to put together a powerful growth vehicle via the lifestyle brands that Accor has acquired over the last three to four years put together as a single platform under the umbrella of Ennismore. The founders of these companies have stayed on board, and having the people passionate about these brands will make a big difference.

"I really do believe that's going to be a game changer for us in North America," she said.

Accor is focusing on growing its luxury and lifestyle brands in North America, including 21c Museum Hotels, SLS Hotels and Mondrian Hotels, she said. Owners are interested in the lifestyle segment given the popularity among guests. Accor has about 20 lifestyle hotels in its pipeline currently.

“It’s a direction that we’re going to continue to see more and more growth in,” she said.

Accor has a wide variety of brands across the globe, but it’s been focusing on growing its presence through lifestyle brands in North America, McCrory said. With such a wide selection, many of the brands are regional, because the company doesn’t need every brand in every country.

Accor has 31 hotels in Mexico, and 23 of those are affiliated with its economy Ibis brand, which leaves room for developing lifestyle hotels there, she said. Conversely, while Accor has numerous economy and midscale hotel brands, it does not intend to grow much in those segments in the U.S. because of how crowded that segment is in the country.

To McCrory, a lifestyle hotel is one with a heavy food-and-beverage presence, usually including a pool or rooftop bar, that is “very kind of hip and a hot scene.” It can account for almost — or even more than — 50% of the hotel’s revenue.

Lifestyle hotels are also high-design, setting them apart from other hotels, she said. There’s something unique about the design element that oftentimes pulls in part of the nearby culture.

“So that swim lane, if you will, is something that a lot of owners are really interested in right now because they can see that continuing to grow, particularly for the younger group,” she said.

For more with HNN's conversation with Heather McCrory, watch the video above.