DALLAS— Attendees at the Accor Lodging North America “One World, One Vision” conference at the Hyatt Regency Reunion got a game plan from its France-based parent company that, for the near-term will continue to center on growth and balance among the stable of brand players within its Accor Economy Lodging and Accor Business and Leisure Hotel divisions. Laid out at the general session, the plan includes continued focus on the upper-upscale Sofitel brand. The drill down includes securing distribution in key gateway destinations in the United States, and differentiating the brand through a distinct focus on its food and beverage operations and offerings. ALNA currently has 1,226 hotels open representing roughly 134,225 rooms, with 233 of those hotels managed or franchised. “We represent roughly 20% of Accor sales and 25% of operating income,” ALNA president/CEO Georges Le Mener told more than 850 attendees, noting “the U.S. still represents 30% of the [business]worldwide, which means it’s a very important market for Accor.” However, while 25 Novotels will come online worldwide this year, there is no intention right now to grow the brand in the U.S., said Sven Boinet, Paris-based management board member in charge of hotels. He noted the brand is geared more toward inter-regional markets such as in Europe, Asia and South America. To compete in the U.S. market “is not reasonable,” said Boinet because of the existing network of competition.” In contrast, Le Mener termed Motel 6 the “financial engine” of ALNA and in five years expects to grow the brand to 1,000 properties, mostly through franchising. Le Mener said one key play in the growth game was last year’s acquisition of 23 Homestead Village properties, which were converted into Studio 6 extended-stay properties, giving the brand needed presence. “We were able to end the year with 40 Studio 6 hotels,” as well as three franchises. “So within two years we were able to establish what is now —not a big brand— but it is a brand.” Le Mener said the company will likely make acquisitions of smaller extended-stay groups as a growth strategy for Studio 6 rather than develop new builds. In 2003, Red Roof Inns will undergo a “significant” renovation program which will utilize the brand’s generation three prototype. “We are going to do with Red Roof what we did with Motel 6 years ago [i.e., Room of the ‘90s program],” said Le Mener. While the program is in the formative stages, Le Mener said over the next five years, Accor would extensively refurbish the RRI network to position the brand above the economy midpoint level. “We are very confident this is going to be a good investment,” said Le Mener. He added “it will allow us to improve a very good product at a reasonable investment level. . Overall, Le Mener noted, ALNA is looking for balance in terms of “segmentation of products and geographic expansion, financial strategy and development.”
Georges Le Mener