Accor adds hotels to its portfolio in South America and bets on franchises, residences and coworking

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Accor adds hotels to its portfolio in South America and bets on franchises, residences and coworking
Thomas Dubaere, Accor
Source: Mazalan Comunicaciones
March 30, 2022

The hotel chain added 22 new hotels to its portfolio in South America in 2021 and plans to open another 25 in the region this year

Despite the difficulties faced by tourism last year, a sector heavily affected by the pandemic, Accor closed 2021 in South America with a turnover of 400 million euros and a RevPAR of (-42%) like for like in comparison with 2019.

“In 2021 we opened 22 new hotels in the region, offering the market 3,737 additional rooms, in addition to signing 14 new contracts (2,100 rooms), even in the delicate context of the global health crisis, which demonstrates the strength of the brands Accor and the confidence of investors in our management capacity”, said Thomas Dubaere, CEO of Accor South America. The company currently has 65 thousand rooms, of which 53 thousand are in Brazil, and a growth of 4.8% compared to 2020.

By 2022, Accor plans to open another 25 hotels in South America, 17 in Brazil and 8 in Hispanic countries, in addition to accelerating new contracts in the franchise model. Countries such as Argentina, Chile, Colombia and Peru, in addition to Brazil, continue to be targeted for the company's expansion, either through conversions or greenfield.

“The goal is to reach 700 hotels in operation and pipeline in 2025”, adds the CEO of Accor. The region currently has 410 hotels in operation, 330 in Brazil and 81 in Hispanic countries, with a pipeline of 81 hotels in South America (58 of them in Brazil).

“We are two years away from finalizing our strategy of 42,000 franchised rooms by 2024, a project called 42k24. Ten years ago we had only 12% of franchised rooms, today we have 43% and by 2024 we hope to have more than 50%”, says Abel Castro, Senior Vice President of New Business Development at Accor South America.

In addition to franchises, another Accor strategy in 2022 is to expand the development of residences, taking advantage of the brand portfolio resulting from the joint venture with Ennismore, such as: 21c, 25hours, Delano, JO&JOE, Mama Shelter, SLS, Tribe, among others.

“The Ennismore transaction created the fastest growing hospitality and lifestyle company in the world; with brands with a creative narrative, design and authentic experiences, with Accor's great expertise in distribution”, adds Abel.

Expansion of international brands in South America
In January 2022, Accor announced the expansion of the international brand SLS Hotels & Residences to Uruguay, with the opening of SLS Punta del Este, a development with 80 rooms and 150 residences in two contemporary towers with the most high standard of luxury, scheduled to open in 2025.

"With this signing in Uruguay, Accor reinforces its two main strategies: the development of lifestyle products in Hispanic countries and the incorporation of mixed-use properties," adds Dubaere. In addition to SLS Punta del Este, in Colombia, 204 apartments and 88 houses will be sold through Sofitel Barú Calablanca Beach Resort. While in Argentina, the SLS Puerto Madero Hotel & Residences will have 145 residences, scheduled to open in 2022.

Another great novelty for this year will be the opening of the first JO&JOE in the region; one in Largo do Boticário, in Rio de Janeiro, and another in Medellín, Colombia; both scheduled for the first half of 2022. JO&JOE defines itself as a young brand that combines hostel with lifestyle, in vibrant living spaces, designed to meet the expectations of those who value sharing spontaneously, having fun and enjoying experiences. 

Among the notable openings for this 2022 are: By Mercure Manhattan Porto Alegre, ibis and ibis budget in Camboriú, in Brazil; ibis styles Guayaquil in Ecuador and ibis styles Antofagasta in Chile.

The development of WOJO products, Accor's global coworking brand, launched in Brazil in 2021, surprised the company by the excellent acceptance that, at the beginning of 2022, a year after its arrival in the country, it reached 150 service points, of which 100 are Wojo SPOTS – Coworking spaces with free Wi-Fi access in common areas of hotels (lobbies, bars and restaurants).

The group also plans to open 50 new Wojo Spots in Argentina, Colombia, Chile and Peru during the first quarter of 2022. “We are going to expand the consumer experience based on research carried out to make environments even more ergonomic, as well as offering new experiences and websites dedicated to the product”, highlights Olivier Hick, COO of Accor's medium and economic brands in Brazil.

Consumer flexibility
In 2022, Accor will maintain its fares with cancellation options and flexibility for changes, as well as a 20% discount for those who have had their flight changed and cancelled.

ALL- Accor Live Limitless
The ALL-Accor Live Limitless loyalty program in 2021 achieved an 85% increase in points transferred from partner programs such as Smiles, Livelo, Tudo Azul, LATAM Pass to ALL.

During 2022, Accor will offer its corporate clients the possibility of offsetting the carbon emissions of their stays and events in the hotels operated by the company. Through the NZCC (Net Zero Carbon Calculator) tool, it will be possible to purchase carbon credits directly from the capture of detailed information on the events, including travel, number of people, menus, energy use and emissions to throughout the value chain of the event, among others.

The highlights of 2021
One of the group's successful plans in 2021 in South America was to focus on the growth and development of hotels in the luxury and lifestyle segment. One of the notable openings of this period is Île de Pipa MGallery Collection, which officially opened its doors in August 2021, bringing the inspiring style of the MGallery Collection brand to Pipa Beach, located in the municipality of Tibau do Sul, in Natal (RN).

At the end of 2021, the opening of Sofitel Barú Calablanca Beach Resort, in Colombia, was announced, surpassing its mark of 400 hotels in South America. Located 25 minutes from the city of Cartagena and separated by the Canal Dique, the resort is located in the midst of the natural beauty and cultural wealth of Isla Barú, a picturesque property that combines the Caribbean essence with good taste and French heritage. , DNA of the Sofitel brand.

In the premium segment, Accor announced last year the conversion of Grand Mercure Curitiba Rayon, the brand's first hotel in Paraná, close to the city's main shopping malls and tourist attractions.

In the midscale category, at the beginning of 2021, Accor announced the launch of the first 'By Mercure' hotel in the world: Thermas de Olímpia Resorts By Mercure, in the interior of São Paulo. “The 'By Mercure' seal is designed to provide independent hotel owners with quick and easy revenue growth, immediate association with the Mercure brand and access to Accor's powerful distribution channels, while providing time and flexibility to achieve gradually integrating with the Mercure brand”, says Abel Castro, Senior Vice President of New Business Development Accor South America. The strategy was so successful that in the same year Accor also announced the opening of By Mercure Matão, in the interior of São Paulo.

Another important advance for the company in 2021 was the conversion of Novotel São Paulo Jardins, in the capital of São Paulo, a development with 161 rooms, a restaurant, a gym and a swimming pool; ideal services for those looking for quality accommodation, for pleasure or business. Also in the midscale segment, the company promoted, throughout 2021, the opening of Novotel Lençóis Paulista, in the interior of São Paulo, and the signing of the contract for the opening in 2023 of Novotel Recife Marco Zero, in Pernambuco.

In the economy segment, 2021 was also a historic year for Accor with the opening of the ibis budget Fortaleza Iracema (CE), ibis budget Maceió Paujuçara (AL) and ibis budget Belo Horizonte Savassi hotels, in Minas Gerais (combo with Novotel Belo Savassi horizon).

In Hispanic countries, the opening of the MGallery Montevideo (Uruguay), Pullman Miraflores (Peru) and Novotel Santa Cruz de La Sierra (Bolivia) hotels stands out.

In 2021, Accor continued with the Heartist Fund, created to help employees and their families affected by the Covid-19 pandemic. One of the initiatives was the donation of food tickets. Nearly 10,000 people benefited from the Heartist Fund, which donated more than 1 million euros to the action, and which will continue to support the company's employees in 2022.

Characteristics by Country:

Accor currently has 12 hotels in operation with 1,563 rooms, 5 of them franchises and 7 managed. This year the opening of Mercure Rosario is planned and they are preparing to add Faena to the portfolio. 
In addition, the SLS Puerto Madero Hotel & Residences, located in an elegant neighborhood of Buenos Aires, Argentina, will soon open. The hotel has 58 spacious rooms and suites designed by renowned Italian designer and architect Piero Lissoni.

In the country, the group has 2 Swisssotel and Novotel hotels in operation, with 238 rooms, and in 2022 ibis Santa Cruz de la Sierra will join with 148 rooms. 

Durante el 2021, Pullman Santiago El Bosque y Pullman Santiago Vitacura completaron sus remodelaciones bajo los nuevos conceptos de la marca con un diseño moderno y cosmopolita que durante el 2022 será complementado con el lanzamiento de sus nuevos restaurantes Lila y Ofelia. Asimismo, se realizó la renovación de Novotel Santiago Las Condes que estrenó su nuevo restaurante Nuna, inspirado en ingredientes locales. Con la reciente apertura de Novotel Arica de 144 habitaciones frente al mar, esta propiedad se convierte en hotel N°24 de Accor en el país, sumando 3.882 habitaciones. También en el norte este 2022 llega el primer ibis styles de Chile a Antofagasta con 153 habitaciones.

The group currently has 21 hotels in operation and 2,809 rooms.
Considered the first luxury beach hotel in the country, Sofitel Barú Calablanca Beach Resort was inaugurated in December. It is the only hotel in the Colombian Caribbean that has LEED certification, the most recognized worldwide for sustainable construction. With an architecture that dialogues with the environment, its value proposition seeks to inspire travelers with experiences that connect hospitality, local culture and biodiversity in one place.
2022 begins with the inauguration of the new "QCeviche" restaurant at Novotel Bogotá, with a proposal of the best of Peruvian cuisine. In addition, Jo&Joe Medellín will arrive, which will also be the first in the region with 58 rooms and 186 beds. It will have a spontaneous and fun lifestyle proposal that combines the entertainment of a hostel with the comfort of a hotel to attract a community of global explorers. Likewise, the opening of ibis Montería is planned, with 120 rooms in a city that has natural attractions that position it as one of the destinations with the highest growth in tourism in the region.

Swissotel, Mercure and ibis Quito are the 3 hotels in operation in the country with a total of 573 rooms. For this year Accor will extend its network with ibis Styles Guayaquil with 203 rooms.

Peru has 13 Accor hotels and 2,268 rooms. During 2021, Pullman Lima Miraflores was inaugurated, with 237 rooms, in one of the most important districts of the capital with an avant-garde and sustainable concept, as well as a spectacular rooftop. ibis Styles San Isidro also opened its doors last year under the "Dream Factory" concept with 184 rooms and a relaxed atmosphere that included the artistic intervention of the renowned Peruvian muralist Elliot Tupac.

In the country, ibis Asunción is operating, a franchise with 120 rooms.

Uruguay has 5 group hotels, including the iconic Sofitel Montevideo Casino Carrasco & Spa, which celebrated 100 years of history. In November 2021, the Hotel Costanero Montevideo MGallery was inaugurated with 92 rooms and a design inspired by local urban culture, which together with ibis and ibis styles, add up to 429 rooms in the country.
In addition, SLS Punta del Este Hotel & Residences has just been signed, which will be located on the peninsula with a comprehensive project that will have a hotel with 80 rooms and 150 residences, as well as a commercial area of ​​3,500 square meters, 3 restaurants, 2 bars , a club house, Spa with pool and fitness center, meeting rooms and kids club. Its opening is scheduled for 2025.


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