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Accor Plans Renovations in North America

The chief executive of the region highlights plans that include relaunching development in Mexico.
By Stacey Mieyal Higgins
June 27, 2011 | 5:53 P.M.

NEW YORK—North America might be secondary to Accor’s European business, but the division still has a lot going on if you ask Olivier Poirot, CEO of Accor North America.

 

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 Olivier Poirot
CEO, Accor North America

Motel 6 is in the midst of a renovation rollout and will have 200 locations complete by the end 2011. The entire network will be renovated by 2013, according to Poirot, who spoke earlier this month at the NYU International Hotel Industry Investment Conference.

 

The Motel 6/Studio 6 network reached 1,100 properties in January.

The strategy also includes moving away from ownership. Poirot said the company used to own 80% of the portfolio, but it will own 40% within the next five years. In 2011, it expects to open 55-60 more Motel 6 and Studio 6 locations, while selling about 30 properties mostly through sale and franchise back deals. The plan is to similarly sell 30 to 40 more in 2012, Poirot said.

While in New York, Poirot was marketing for sale the Hotel Novotel New York Times Square. The company’s plan is to remain as long-term manager after it is sold, and the property will also be renovated.

Mexico development
“We will relaunch development in Mexico this year,” Poirot said. “The challenge is that there is no product to convert, so it has to be new-build. That means a few years can go by before you see growth.”

The main vehicle for growth will be the midscale Ibis brand, he said. Accor also is considering Motel 6 in Mexico.

Poirot also said the company could look into the acquisition of the domestic Grupo Posadas. The company had recently been put up for sale, he said. But it was too early to say whether Accor will pull the trigger on a deal for Grupo Posadas. “We will look into the matter like we would for any opportunity to enter a market,” he said.

In regards to Denis Hennequin, who replaced Gilles Pélisson as CEO of Accor SA in December, Poirot said it is too early to say if there will be a shift in strategy.

“We’re still focused on developing our story,” Poirot said. “He’s a brand guy, and a lot of what’s in the pipeline is focused on making the brand stronger.”