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News: Accor Announces Global Expansion in Extended Stay Hotels

Introduction

Accor, a global leader in the hospitality industry, continues to make substantial strides in the extended stay and serviced apartment sector. With a portfolio of over 380 extended stay hotels globally, Accor's presence in this market positions it as a significant player outside the United States. The introduction of the Novotel Living brand in new destinations further demonstrates Accor's commitment to catering to travelers seeking longer-term stays. In this update, we delve into Accor's strategic approach, its expansion into premium segments, and its response to the changing landscape of travel.


The market is changing

CBRE Hotels Research and STR have noted that in the US, hotel extended stay portfolios have expanded by “more than 50% - a CAGR of 7.1% versus 3.2% for the US market as a whole.” And yet, as a recent report by Skift highlights (with figures from The Highland Group), demand for extended-stay lodging is still “outpacing supply by nearly three-to-one in most US markets.” Furthermore, The Highland Group reports that earlier this year, “the economy, mid-price, and upscale segments saw demand increasing by double-digit percentages while supply rose by only low single-digit percentages.”


Here are the key takeaways from the recent news release of Accor:

Accor, a global hospitality leader, is expanding its extended stay portfolio, now encompassing over 380 extended stay hotels worldwide. Key developments include:

  1. Novotel Living Expansion: Novotel Living, a Novotel brand extension, is now available in destinations like Singapore, Bangkok, Saigon, and Kazakhstan.

  2. Global Growth: Accor's extended stay properties span 14 brands and offer a diverse range of styles and price points, focusing on Europe and Asia.

  3. Industry Growth: The global extended stay market is predicted to reach $166.5 billion by 2032, driven by an 11.8% CAGR. Europe remains a key market for serviced apartments.

  4. Brand Offerings: Accor's brands span the economic to luxury segments, including Adagio, Mercure Living, and Novotel Living, as well as premium options like Swissôtel Living and Pullman Living.

  5. Digital Booking: A dedicated booking platform enables guests to explore Accor's extended stay properties and access its loyalty program, ALL – Accor Live Limitless.

Accor's expansion is a response to changing travel habits and increasing demand for extended stay accommodations, providing various options for both business and leisure travelers.


“The escalation of demand for extended stay properties is a global phenomenon, driven by a demographic shift among travelers who are taking longer trips, mixing business with leisure, and exploring destinations more fully,” - Jean-Jacques Morin, Accor Deputy CEO, PMED CEO


This trend aligns with our recent article about how offering Co-Working facilities will become a must when looking at the future generation travlers. (Read our article here)


In Conclusion

Accor's remarkable expansion in the extended stay sector underscores its commitment to providing diverse, innovative, and premium hospitality options for travelers worldwide. The introduction of Novotel Living in new destinations signifies a dynamic approach to meet the evolving travel preferences of an increasingly mobile and discerning clientele. As the world's largest player in the extended stay category outside the United States, Accor is strategically positioning themselves to cater to various traveler types, from economy to luxury and from leisure, to business to bleisure.










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