Accor CEO Sébastien Bazin has been focused on increasing the luxury offerings of the Paris-based hotel group since 2013. At the end of 2015, only 6% of Accor’s rooms worldwide were considered luxury, but now at least 10% of its over 800,000 rooms are in the luxury segment with a broader range of luxury brands. Accor showcased its luxury offerings at the International Luxury Travel Market (ILTM) expo in Cannes, with over 380 luxury hotels in its portfolio. Despite its growth in the luxury segment, Accor is not as large a player in the space as global leaders like Marriott and Hilton.
Accor is set to launch Orient Express as a brand of hotels, trains, and yachts, marking its entry into the ‘ultra-luxury’ segment where rooms typically sell for over $1,000 a night. The first Orient Express property, La Minerva, is set to open in Rome this spring, with plans for a portfolio of hotels, sleeper trains, and sailing yachts. The brand aims to capture the luxury travel experience of 100 years ago, focusing on service, aesthetics, and exclusive experiences.
Under the leadership of Omer Acar, Accor’s luxury brands Raffles and Fairmont have seen significant growth since the acquisition of the brands in 2016. Fairmont aims to be deeply connected to the social fabric of its destinations, offering accessible luxury to host large groups and events. Raffles, on the other hand, focuses on smaller properties for intimate gatherings by families and executives, with recent successful openings in various locations around the world. Both brands have unique offerings and are positioned for further growth in key markets.
Maud Bailly was appointed as CEO of Accor’s luxury brands Sofitel, Sofitel Legend, MGallery, and Emblems in 2023. With a focus on revitalizing the Sofitel brand, Bailly has implemented renovations, service culture improvements, and brand positioning changes. Every Sofitel property aims to be deeply connected to its local community, embodying a service culture focused on generosity and authenticity. Major renovations have been carried out in various locations to enhance the overall guest experience.
In the accommodations sector, the performance of hotels and short-term rental sector stocks within the ST200 index has been a key focus. The index represents publicly traded companies across global markets, including hotel brands, REITs, management companies, and alternative accommodations. The Skift Travel 200 combines the financial performance of nearly 200 travel companies into a single index, providing insights into the overall financial health of the accommodations sector.
Overall, Accor has made significant strides in expanding its luxury offerings under the leadership of CEO Sébastien Bazin. With the debut of Orient Express and the growth of its Raffles, Fairmont, and Sofitel brands, the company has diversified its portfolio to cater to different segments of the luxury travel market. By focusing on unique experiences, service excellence, and brand differentiation, Accor is positioning itself as a key player in the global luxury hospitality industry.
