Accor will survive trade tensions, will continue expansion: CEO Sébastien Bazin

InterGlobe Enterprises group Managing Director Rahul Bhatia and Accor Chairman and CEO Sébastien Bazin

Mumbai

Global hospitality chain Accor will continue expanding in high growth markets like India unfazed by ongoing global trade tensions.

“We have been there in 2008. I have been there through the Covid-19 pandemic years. In any scenario you have some great years and some with mild growth or a negative growth of 1-2 per cent. Accor has survived 40 years of different storms. We will survive this one,” the hospitality chain’s chairman and CEO Sébastien Bazin said on Wednesday in reference to a query on tariffs and trade tensions.

He believes short-term impact of US policies will be minimal: “People will opt for destinations other than the US but will not cancel travel altogether. In the medium to long term, it will depend upon impact of tariffs on the global economy, GDP growth, inflation rates and so on.”

Bazin spoke to businessline after announcing an expanded partnership with InterGlobe that aims to triple Accor’s hotel portfolio in India to 300 by 2030. Now it has 71 hotels in operation and a pipeline of 40 under development.

Globally Accor runs over 5600 hotels in 110 countries. These include popular brands like Ibis, Novotel, Sofitel among others.

The two groups will consolidate their existing hotel business in India in a single entity. The companies also announced a master licence agreement with Treebo to develop properties under Ibis and Mercure brands. 

Accor and InterGlobe will also invest in Treebo making them the largest shareholders.

A loyalty programme collaboration was also announced between Accor and India’s largest airline IndiGo.

Long-term view

Bazin said Accor takes a long term view on expansion factoring various volatilities and will not pause growth because of ongoing trade tensions.

Asia Pacific and Middle East countries remain focus markets for Accor. Infact 50 per cent of its new hotel development in the past seven years has come in this region with India emerging as its key growth market after US, Europe and China.

Accor and InterGlobe tied up for hotel development in 2004. While growth has been slow far, the companies hope to accelerate launches in midscale and economy segments with the licensing agreement with Treebo. Accor expects exponential growth from premium and luxury segments too and plans to launch another 10-12 new brands in the country.

InterGlobe Enterprises group managing director Rahul Bhatia said growth will largely be driven through management contracts.

IndiGo CEO Pieter Elbers said  partnering with Accor, a likeminded global hospitality brand, will open new and unparalleled opportunities for airline’s loyalty programme members. Since its launch last November the airline’s BlueChip programme has garnered two million members. The loyalty programme tie up will enable reward points sharing, co-branded programmes and allow customers to earn and redeem points across flights and stays.

Published on April 9, 2025