Accor Drops to 6th Place in World Rankings After Sale of Motel 6 to Blackstone

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. May 24, 2012

May 24, 2012 - Fifth largest hotel group in the world with 531,714 rooms as of 1 January 2012 for over 4,400 hotels in the world, Accor is going to lose almost 1,102 hotels and 107,000 rooms once the sale of Motel 6 and Studio 6 is finalized later this year. By removing these two brands from their network, Accor slides back a notch behind Choice Hotels International (taking into account their figures as of 1/1/2012).

The structure of the American hotel market makes the situation for economy brands more difficult during a period of crisis. During the phases where hotels lower their prices, the important size of the mid and upper-range sector, compared to the lower range sector, makes the latter lose market shares that are hard to get back. Contrary to Europe, the economy sector is the base that plays a role in easing the cycle.

Accor group remains largely on top of the podium in Europe, Latin America, and Asia pacific. The scheduled development (40,000 rooms/year) and the pipeline already set up are focused on both “continents”: Asia Pacific and Latin America, where the group wants to improve even further its positions. In Europe, even if the rhythm is slowing down, growth needs to be secured by an extra effort from franchising within economy brands. This is the reason why there is such a strong communication campaign for the Ibis “Super brand”.

Now that the group is totally out of debt, and a “money-arsenal” immediately available, Denis Hennequin hasn't given up on other external development campaigns, like Mirvac in Australia, to reach the Group's announced objective, which is to be one of the top-three hotel groups in the world.

As it is already a shareholder of many hotel groups (Hilton Worldwide, La Quinta, Simply Hotels (formerly known as Mister Bed)), through the acquisition of Motel-6/Studio6, Blackstone becomes the largest hotel owner in the world with direct control of over 850,000 rooms across the world.

ABOUT MKG Group Established in 1985 by Georges Panayotis, MKG Group has built a solid reputation for business expertise and substantial European-based know-how in the fields of tourism, lodging and food service. MKG Group meets the needs of each of its clients by providing valuable analytical and decision-making skills necessary for success. www.mkg-group.com