HOTEL OPERATOR FOCUS

The Accor Success Story in Asia

Patrick Basset
Vice President South & South East Asia
Accor Asia Pacific

Hyatt Hotel & Casino Manila

8th November 2006
CONTENT

• Accor Asia in Brief

• Openings
• Strategy in Brief
• Cater to the growing middle class
• China Focus
• India Focus
• Accompany our loyal customers

• International in outlook and local in implementation

Accor Asia in Brief

Network (at 31/08/2006)

128 hotels – 30,329 rooms

34 The vibrant fresh French elegance in prestigious destinations

6 The new collection of elite hotels & resorts with a strong personality

41 Contemporary urban hotels and fun family resorts

11 Hotels with distinctive style and local character

1 The resort within the city

17 Comfortable, affordable, reliable

Openings

2005 2006 (at 31/08/06)

● Sofitel 3 6
● Grand Mercure 2 2
● Novotel 4 3
● Mercure 4 1
● Ibis 1 4

● TOTAL 14 16
Strategy in Brief

In 1982, Accor started operation in Asia with its first Novotel in Singapore.
Today, Accor operates 130 hotels in Asia.

Accor is worldwide leader in the mid-market and is leveraging its experience in

various markets to cater to the growing middle class in Asia.

Accor is No 1 operator in a number of countries (France, Germany, Australia,

etc) and is leveraging such position to accompany its loyal customers in
Asia

Accor is focusing on China and India with large resources and innovative
strategies

Accor has a vision for Asia: to be international in outlook and local in

implementation
Cater to the growing
middle class

● Economic growth has allowed consolidation and sophistication of the middle

class in Indonesia, Malaysia, Thailand and The Philippines
● Significant middle class is emerging in China, India and Vietnam with a
particularly young average age
● Travel needs have increased significantly:
● In China, domestic tourism was estimated at 800million travelers in 2005
● In India, domestic tourism was estimated at 300million travelers in 2005
● Emerging and consolidating phenomenon:
● Budget airlines
● Intra-Asia travel
● Domestic MICE
Cater to the growing
middle class

● Contemporary urban hotels & fun family resorts

● Position the Brand as the leading 4-star in every Asian country
● Adapt to the needs of each domestic market and participate in our
customers’ lives (sponsorship, community work, etc)
● Key target markets: business traveler, MICE, family leisure
● Where our customers need to go: airports, business parks, convention
centres, CBD, shopping malls, popular resort destinations, city get-aways,
etc
Novotel Citygate
Hong Kong
Novotel Suvarnabhumi Airport
Bangkok

Picture 4
Novotel Convention Centre
Hyderabad
Novotel Mangga Dua
Jakarta
Novotel Bandung
Cater to the growing
middle class

● The best value international hotel

● For all people looking for value for money when traveling within their country
● Key target markets: government people, sales people, technicians,
independent business people, particular interest groups (associations,
sports), visiting friends, shopping, etc
● Very well received in Indonesia where the brand enjoys great awareness
● China start very promising (30 hotels under construction)
● Coming soon to India, Thailand and Vietnam
Ibis Meyong Dong
Seoul
Ibis China
 China Focus

DELUXE BRANDS TOTAL MID RANGE BRANDS TOTAL

Shangri-La 18 Holiday Inn 29
Crowne Plaza 15 Novotel/Mercure 14
Sheraton 15 Ramada 13
Marriott 11 Courtyard Marriott 6
Sofitel 11 Traders Hotel 5
Renaissance 8 Radisson 4
Hyatt Regency 6 Four Points 1
Inter-Continental 5 Park Plaza 1
Hilton 4
Grand Hyatt 3

ECONOMY BRANDS TOTAL

Days Inn 6
Super 8 5
Ibis 3
Express by Holiday Inn 2
China Focus

NOVOTEL
● 10 Novotel hotels in operation
● First new generation concept in Citygate – Hong Kong
● Accor investing in first new generation concept in Mainland China with
Novotel Phoenix Beijing
● Accor to invest in a network of contemporary urban hotels for Chinese
business people

IBIS
● 3 Ibis hotels in operation in Tianjin, Chengdu and Qingdao
● 30 Ibis hotels in operation by 2008 (under construction)
● 500 Ibis hotels at maturity
India Focus

HOTEL COMPANY TOTAL

Taj Hotels Resorts & Palaces 55
Carlson Group 24
Sheraton ITC / Welcome Heritage Group 20
InterContinental 14
Oberoi Hotels 10
Hilton Hotels 8
Marriott 7
Le Meridien Hotels 6
Hyatt 5
India Focus

NOVOTEL
● Arriving late after the competition – opportunity to set new standards
● Novotel Hyderabad – first successful opening
● A concept well adapted for the growing demand from new generation
business people (IT, Entrepreneurs)
● 3 Novotel hotels under construction in Gurgaon, Bangalore, Hyderabad

IBIS
● JV formed in 2004 with partner InterGlobe
● 4 Ibis hotels under construction in Pune, Gurgaon, Jaipur, Mumbai
Accompany our loyal
customers

● Accor is a leading operator in a number of countries: Australia, Brazil,

France, Germany, South Korea, Spain, UK, etc
● Accor has built brand awareness within countries which represent major
inbound business into Asia
● Accor’s strategy in Asia is to leverage brand awareness and market
knowledge to accompany our loyal customers when traveling to Asia
● Focus on Sofitel and Grand Mercure
● Accor innovates with:
● New destinations
● New products
● New programs
Accompany our loyal
customers

New Destinations

● Emerging resort destinations (Phu Quoc, Krabi, Hangzhou)

● Emerging megalopolis (Nanjing, Suzhou)
● Airports (Bangkok, Hong Kong, Guangzhou)
Accompany our loyal
customers

New Products

● Mutli-brand complexes (Sofitel – Grand Mercure – Mercure in Renmin

Square, Xian)
● Boutique hotels (Shanghai, Phu Quoc)
● All-suites (Bangkok, Bali)
● Serviced Apartments (Bangkok)
Grand Mercure La Veranda
Phu Quoc
Renmin Square Complex
Xian
Accompany our loyal
customers
5
Picture

New Products
New Programs

BENEFITS
Advantage Plus is a membership program offering hotel
accommodation and dining benefits to members. The program is 1 Complimentary Accommodation
developed to provide hotels and resort within Asia Pacific region Certificate
with offers that would encourage customer’s retention, frequent ■
and regular usage of Accor hotel facilities and services with cost 15% discount from the best
saving benefits. unrestricted rate available at the
time of reservation on
Target customer: Business and Leisure individuals accommodation throughout
Zone of Validity: All Sofitel, Grand Mercure, Novotel , Mercure, Asia Pacific upon presentation of
All Seasons and Ibis Hotels in Asia Pacific. current membership card at Sofitel,
Grand Mercure, Novotel, Mercure,
• 11,000 members in Thailand, 95% Bangkok based Ibis and participating All Seasons
• 8,800 members in China Hotels
• 5,200 members in the Philippines ■
• 6,500 members residing in Singapore, Indonesia and Malaysia Dining discounts of up to 50%
• 120,000 members in Australia based on minimum two people
dining
Marketing collateral:
Advantage Plus periodical
newsletter - distributed to all
Advantage Plus members in Asia
International in outlook and local
in implementation

Académie Accor

The largest corporate hotel university in the world. Académie Accor has
currently more than 40 Certified Trainers throughout Asia.

The following is a selection of Académie Accor courses in Asia:

• The Accor Way

• Train the Trainer
• A Manager (basic management skills)
• Keys to Communication
• Welcoming guests: a state of mind
• Sales & Marketing Training
• Revenue Management
• Conducting Effective Meetings
• Conflict Resolution and Negotiating Skills
International in outlook and local
in implementation

HR Programs

Develop local managers with programs such as “Accor Vivier” to identify future
local General Managers or “Succession Plan” to prepare local staff for
management positions through cross exposure.

Encourage Staff mobility with www.accorjobs.com to allow employees to

acquire a wide range of skills.

Provide training at all levels from Executive, Department Heads, Supervisory

and Rank & File.

Cross training and exposure all employees within the country or the region.
International in outlook and local
in implementation

Textures of Asia

In 2006, Accor has launched an ambitious corporate project called “Textures of

Asia”.

“Textures of Asia” is a collection of images that represent the Core Values of

Accor (Trust, Responsibility, Innovation, Professionalism, Transparency)
through- out Asia.

The essence of these images expresses details of local culture, environment,

staff, in each property and the way in which we conduct business and
integrate with local communities.
International in outlook and local
in implementation

Textures of Asia