SHERIDAN, WYOMING – Mar. 2, 2025 – Accor CEO Sébastien Bazin recently provided an in-depth update on the company’s strategic direction and U.S. market activity during a press event in New York. The event highlighted Accor's significant transformation and future growth plans, emphasizing a focus on luxury offerings within the competitive U.S. hospitality landscape.
Accor's Transformation and Current Position
Bazin began by reflecting on the company's substantial growth over the past eight years, noting the expansion from 14 to 47 brands. “Whatever transformation we have done… is behind us,” he said. “It was eight years of hard work, and now we are in a very comfortable zone where we reap the benefits.” This transformation has positioned Accor with a diverse brand portfolio, robust market share, and a strong global network of owners and partners.
Global Hospitality Growth and Accor's Advantage
Addressing the broader hospitality industry, Bazin emphasized the significant growth in travel and tourism, which now accounts for over 10% of the global GDP. He noted the consistent demand outpacing supply in the sector. “For the last 30 years, we’ve seen a demand growth of 3-5%, with supply growing just 1.5-2%,” he said. “That’s why companies like Hilton, Marriott, Intercontinental, Hyatt and Accor have been able to thrive.” Accor’s strategy is designed to capitalize on this growth, particularly in emerging markets where the company has established a strong presence. “We have been lucky enough for the last 40 years to penetrate deeper and faster where Accor is a leader in all the other geographies in the world,” Bazin added.
U.S. Market Strategy: Focus on Luxury
Despite global success, Bazin acknowledged the unique challenges of the U.S. market. While Accor has seen success with high-end properties like the Raffles Boston, the company’s expansion of luxury brands in America will remain selective. “Raffles is ultra-luxury, and you don’t get Raffles in secondary or tertiary cities,” he said. “We’d be very happy if we have less than 10 Raffles in America.” Omer Acar, CEO of Raffles, discussed potential developments in Beverly Hills, Miami, and other key cities, noting that “Raffles Boston is having the best rates and the best performances within nine months of operation.”
Accor’s U.S. portfolio also includes Sofitel, Fairmont, and Ennismore, its lifestyle brand collection. The company plans to expand Fairmont’s footprint with new projects in major U.S. cities and ski resorts, while Sofitel’s upcoming renovation in New York aims to enhance its luxury market presence.
Strategic Decisions: Midscale and Premium Brands
Bazin clarified that Accor has no plans to expand its midscale or premium brands in the U.S., citing the highly competitive nature of these segments, which are dominated by major American players. “We have no intention whatsoever to deploy a midscale or premium brand in America,” he said.
Lifestyle Brands and Global Inclusivity
However, Bazin did not rule out the development of lifestyle brands under the Ennismore umbrella, which includes U.S.-born brands like SLS and Mondrian. “Accor is so much of a leader in lifestyle product that we probably need an opportunity to develop further,” he said.
Beyond market strategy, Accor remains committed to cultural diversity and inclusivity. Bazin highlighted the company’s efforts to hire and train individuals from diverse backgrounds. “We give them a hand, and we help them embark on a career,” he said, noting that Accor hires 120,000 people annually, with 70% coming from underserved communities. This commitment to social responsibility is a core part of Accor’s ethos.
Looking Ahead: Accor’s Vision
Accor’s strategic focus on luxury in the U.S., combined with its global growth and commitment to inclusivity, positions the company for continued success in the evolving hospitality industry. By leveraging its diverse brand portfolio and adapting to market-specific challenges, Accor aims to maintain its leadership and deliver exceptional experiences to its guests worldwide.
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