Accor bets on hotel conversion in Colombia

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Accor bets on hotel conversion in Colombia
Fri January 22, 2021

Allows independent properties or small network brands to increase their competitiveness and profitability by partnering with a global brand such as Accor

Even in times of tourism uncertainty, Accor is strongly pushing the hotel conversion model, which allows independent properties or properties with small network brands, to increase their competitiveness and profitability by partnering with a global brand like Accor.

The business strategy has become an important pillar of Accor in the context generated by the pandemic, in which many local hotels have been affected by the health situation. To overcome the crisis, the conversion to the brands of this group opens to the properties the possibility of entering and obtaining benefits from a global distribution network that helps to professionalize services, access technological resources that enhance distribution, sales and income in the recovery stage, joining loyalty programs, acquiring safety and hygiene protocols that guarantee protected attention to guests and collaborators and, finally, leveraging both the recognition of recognized names and volume negotiations.

In this sense, the leading hospitality operator offers great strength with its global network of 2,450 franchises, 2,550 managed hotels and more than 40 brands in all segments, in 110 countries. In South America, this robust gear is expressed in 393 operating properties and another 123 in the pipeline, in addition to the presence of 15 brands, including Sofitel, Pullman, MGallery, Novotel, Mercure, ibis, ibis budget and ibis styles.

Added values ​​include the advanced digitization of various operational processes, an attractive loyalty program (ALL- Accor Live Limitless) and sanitary procedures validated during 2020 by the ALLSafe guarantee seal, jointly developed by Bureau Veritas.

In South America, conversion plays an important role in Hispanic countries, where Accor is the second most relevant player in global chains. In this region, independent hotels represent 84% of the current offer in the markets of Argentina, Chile, Colombia and Peru -according to information from the STR company-, although the proportion is maintained in the rest of the markets.

In this way, the company's focus is on the main markets of each country where the existing supply is concentrated, but also on secondary and tertiary cities.

“Along this new path, we are also renewing our relationships with local partners, consultants and developers, who are the ones who better understand the operation of each market. For this reason, we are creating alliances and exploring different types of relationships to reach opportunities, mainly in the franchise format, but also in property management in the case that it is a good alternative for all parties ”, indicates Luis Mirabelli, Vice President of Development of Hispanic Countries of Accor.

As part of this strategy, the chain seeks to make some of its current brands more flexible to provide versatile conversion options. "On the one hand, it works as a vehicle to connect independent hotels to our channels and, on the other, as a way to gradually enter our main brands in the future, without this implying a large initial investment," says the executive. .

The hotel chain assures that the possibility of being associated with a colossus of quality and Accor's resources will allow the market to recover more efficiently in the coming years. For this reason, “we are making a great effort to redesign and adapt our brands, create new connection channels and also add new services that can complement those of the hotel industry, such as the possibility of temporarily using the rooms as offices or entering to the growing extended stay business ”, concludes Mirabelli.


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