Accor checks into three hotels as big chains battle to expand
Australia’s largest hospitality player, Accor, will take over three hotels run by a Malaysian platform, as smaller operators are absorbed by the major chains – and tap their loyalty programs – to remain competitive.
The three hotels – two in Australia and one in New Zealand – will get a makeover before they join a slew of new offerings the French company is preparing to launch across the Pacific this year and beyond. Accor is battling with its major rivals, including IHG and Marriott, to strike management agreements for hotel properties across the region.
In the latest deal, Accor has signed management agreements with The Sydney Boulevard Hotel in Sydney’s CBD, the Bayview Georgraphe Resort at Busselton in Western Australia, and the Wairakei Resort Taupo in New Zealand’s North Island.
Details of the deal with Bayview International Hotels & Resorts have not been disclosed.
“Taupo is an area of New Zealand where we have been wanting to build a presence, while the hotels in Sydney and Geographe Bay will greatly complement the properties we already have there,” Camil Yazbeck, global chief development officer at Accor, told The Australian Financial Review. “We see significant upside potential for all three hotels.”
Accor, which is listed on the Paris stock exchange, plans to upgrade the hotels’ design, facilities and amenities and then relaunch them within one to two years with refreshed brand identities.
“We are always on the lookout for opportunities to expand our network in the Pacific region, for several reasons,” Yazbeck said. “We are experienced, comfortable, and optimistic about investing in this market.”
All three of the hotels are owned by Malaysian conglomerate Oriental Holdings Berhad, which also distributes Honda vehicles in Singapore and Brunei.
The listed company also owns the historic Newspaper House in Collins St, Melbourne, which it purchased for $35 million from Singaporean company Lian Beng.
Dean Dransfield, founder of Dransfield Hotels and Resorts, a hotel industry consultant, said The Sydney Boulevard Hotel had been independently managed for many years, and probably saw value in being managed by the hotel conglomerate.
“Sydney is a bottomless pit for hotel operators. They will take as many hotels as you can throw at them to run,” he said.
“What’s probably happened is that the owners have recognised that today, you need to be affiliated with a hotel chain if you have a large hotel because of the impact of loyalty programs.
“Also, [there’s a] need to secure a direct relationship with customers by being connected to a big brand that can take advantage of AI-related tools so that the hotel comes up when customers are searching for a place to stay.”
Dransfield believed the nation’s hotel industry was in “quite good shape” as more Australians holiday at home as a result of a weaker dollar.
“More Australians spend more time overseas than overseas people spend in Australia,” he said. “So anything that discourages Australians from going overseas is good.”
Built in 1972, The Sydney Boulevard Hotel features 277 rooms, seven suites, 11 meeting rooms, a ballroom, restaurant, cafe and another top-floor meeting room with views to Sydney Harbour.
Three hours from Perth and in the Margaret River region, the Bayview Geographe Resort in Busselton, has 137 rooms, an indoor pool, tennis court, golf putting green, villas and direct beach access.
Wairakei Resort Taupo offers 187 rooms, a nine-hole golf course, a geothermal swimming pool, a day spa, multiple dining options and conference facilities.
Accor is also opening a 140-room Novotel Sydney in Cabramatta this November, as well as launching three brands in Australia through new hotels in its joint venture with Ennismore Group; the Mondrian Gold Coast hotel & residences in Burleigh Heads, the 120-room Hyde Perth and a 25hours Hotel in Paddington, inner Sydney.
Just last year, Accor opened a new Novotel and Ibis in Melbourne Airport.
The company made its first move into Australia in 1990 when it signed a 20-year agreement with Citistate Corporation to operate what would be the Novotel Sydney in Darling Harbour, originally the Darling Harbour Hotel, before its $160 million rebrand.
It has acquired some of the region’s biggest hotel platforms, including Mirvac Hotels & Resorts in 2012 and Mantra Group in 2018.
Accor and the National Rugby League recently announced the extension of their accommodation partnership until the end of 2027.
Founded in 1967 in France, Accor manages about 45 hotel brands across the globe, including Ibis, Mercure, Pullman and Sofitel hotels.