Accor to step up hotel expansion via franchise
French hotel giant Accor plans to step up the pace of its expansion, mostly by franchising, the company's chief executive said on Monday.
The world's fifth-largest hotel group plans to add some 30,000 rooms this year to its network of slightly more than 507,000 in more than 4,200 hotels.
Beginning in 2012, the company which runs the Sofitel, Novotel and Formula1 hotel chains, aims to add 35,000 rooms per year, chief executive Denis Hennequin told a general shareholders meeting.
Over three-quarters of the new rooms -- primarily in Europe and Asia -- would be opened by franchise or management contracts, reducing the need for new capital, he added.
Accor posted sales of 5.9 billion euros ($8.4 billion) last year and has set a profit target of 440 million euros for 2011.
© 2011 AFP