DILEK SEZER:

How would you describe Accor right now in four words?

To be honest, it is a challenge to narrow the description to four words only. I would say: ambitious, dynamic and expansive market leader. Our network globally, but especially in Eastern and South-Eastern Europe, grows at a very dynamic and ambitious pace. We introduce new projects, and new quality to already existing markets, but also enter brand new ones, where we inspire the boost of local hospitality and tourism industry with our unrivalled offering.

Accor is making significant progress in Central Europe and the Balkans thanks to its partnerships and expansion plans. Many projects are in the pipeline such as the modernization of the ibis Bratislava Centrum in Slovakia, the signing of the first Pullman in Montenegro or Mercure Prishtina due to a partnership between Accor and Minimax Group. What does that mean for the brand?

From a global perspective, the market is experiencing a dynamic and ambitious rebound today. Looking at the dynamics of not only the rebound but also the development of the industry, we can confidently say that the market will not slow down in the coming years. This conclusion comes not only from Accor’s ambitious pipeline around the world or in the EasternEuropean region. In the case of Central and Eastern Europe, i.e. 16 countries, it is a region that is developing at a dizzying pace. Over the next two years, we have more than 40 openings planned for today, and we are constantly signing new contracts and developing our portfolio.

We spoke to Dilek Sezer, Senior Development Director - Accor Premium, Midscale & Economy Brands - South Eastern Europe, to find out exactly what makes this brand so ambitious, dynamic and expansive market leader.

We also continuously implementing projects signed a few years ago. For example, we are soon to open our first Mercure hotel in Tirana which we are very excited – can’t wait to have a coffee at the roof top bar while enjoying the views of Tirana.

Back to your question, we observe a lot of interest in joining the network from new partners as well, also in Poland, which indicates that investors are convinced that the market will return to its tracks. Not surprisingly, the results of many hotels this year or last year exceeded the 2019 levels. In the first quarter of 2023, Accor opened 36 hotels, for around 4,400 rooms, and has thus achieved net network growth of 2.9% in the last 12 months. Thus, you can see by the numbers that the development of our brands is expanding and growing rapidly in our key markets.

What prompted the international expansion to CEE and the Balkans?

As a world-leading hospitality group consisting of more than 5 400 properties across the globe, we have one of the most diverse and fully-integrated hospitality ecosystems encompassing luxury, premium, midscale and economy hotel brands, entertainment and nightlife venues, restaurants, and bars, and many more. That comes with Accor’s unmatched position in lifestyle hospitality. We can see a very strong interest in joining our network which comes with a huge variety of advantages to our partners. Furthermore, our rich portfolio of various brands meets the needs of modern travellers which helps us to boost the tourism industry in many markets we do operate or decide to expand. We have seen a big interest in new markets, especially in the Balkan region, in countries like Croatia, Serbia, Bulgaria, Romania or Montenegro and Albania, where our hotels act as milestones for local industry. That is why we are confident in our input on local development because the whole Balkan region has tremendous touristic potential, especially for premium brands. It still remains the hidden touristic gem of Europe with many outstanding surroundings and destinations we want people from the whole world to discover, especially that in some of the markets we are the first international and global hospitality chain opening its properties.

What are the major challenges while building the way forward?

The last two years of unprecedented changes within the whole global industry shaped the whole hospitality and tourism sector without a doubt, speeding up the process of change we saw coming in the future. Right now, we can definitely tell that despite many brands, many actors, and participants within the industry sectors, we try to stay united and support each other for example to face the challenges and create positive change for the whole society. We are happy to see that people long for travelling and they want to travel, meet new people, discover new places, and gather unforgettable experiences. Hospitality is, has always been, and will always be about the people. That is why every day of work in this field brings amazing satisfaction.

We, as a hospitality market leader, want to be at the forefront of inspiring and leading positive change not only for our industry but global business as a whole – for example in terms of facing climate change and presenting solutions that can be implemented to protect our planet. So I like to believe that modern hospitality is also about innovative solutions that support positive change in the world.

We want to know what makes Accor hotels different from others, why they have the best services and what makes visitors choose these hotels to spend their dream holidays Without a shadow of a doubt, I can say that

Accor is one of the true industry leaders across the globe with a #1 position in the economy and midscale brands and a #2 position in luxury and lifestyle brands worldwide.

We offer the most diversified, and unrivalled portfolio of hotel brands across all segments in the world allowing the company to stand out in a very crowded market. Accor leverages the strengths and distinctiveness of each to deliver unique experiences to its guests and enhance value creation for its partners. Our last year’s development performance resulted in more openings and signings than any global competitor across its historical top markets. The development was particularly strong in Europe, with one of the most extensive pipelines and development. We are constantly developing and strengthening our portfolio, and partnerships, acquiring new hotels and carrying out rebranding. We also introduce new lifestyle concepts and solutions that are becoming more and more popular.

The investors start to embrace international brands which will allow the region to get more visibility in new distribution channels and allow them to move for sure to have a valuable type of international tourism. We are proud that so many investors have chosen to develop their vision together with us. We are enthusiastic to contribute to the growth of this promising market with the delivery of new hotels to come in the future.

More than 40% of Accor’s worldwide development projects involve the refurbishment of existing buildings, underpinning the company’s environmental, social, and governance (ESG) commitments. This nicely complements the Group’s development activity on new build projects.

Accor has cemented its position as a leader in the global luxury hotel market. The Group is known for its award-winning F&B venues, innovative concepts such as the Orient Express trains, transformative wellness initiatives, and customized experiences that open minds, expand knowledge, and shift perspectives.

Which other destinations are you identifying as having the most potential for Accor developments? And which brands will you be concentrating on developing in the next few years?

We are pleased with the wide variety of growing network of diverse partners and many successful agreements in Central and Eastern Europe where we enter countries where there were no chain hotels before. The focus is to further enhance the network with resort destinations and premium hotels that we see big potential in.

More than 70 percent of Accor’s development volume is derived from these important power brands, particularly those in the economy and midscale sectors. Franchising is Accor’s development model of choice across the economy and midscale segments, although the company does manage properties in key gateway locations with a high density of travellers.

As a global market leader with one of the richest and most diversified brand portfolios, we guarantee our partners unlimited development opportunities. This approach is the result of our belief in creating such operational models that will address all the needs of not only the franchisee, guests, and community, but also the location itself.

Our extensive portfolio of brands meets the needs of franchisees. Its advantage is the diversity tailored to the specificity of a given location, demand, or partner’s preferences. Thanks to such an offer and experience, together with our partners, we develop a model and project that has the greatest potential in a given destination and is tailored to the expectations of visitors or local communities. By choosing a brand, we guarantee a specific standard, which does not only apply to the decor or class of the hotel, but to the value package that goes with it. These are specific experiences, impressions, and additional opportunities.

Among franchisees, especially in Central and Eastern Europe, 4 brands stand out, most often chosen: Mercure (known, recognized, and liked, one of the first brands, many investors are interested in), ibis Styles (creative, well-established operationally), Mövenpick – which is ideally positioned as a premium brand poised for high volume expansion across many geographies and especially popular in the Balkan region.

And of course our exciting new addition Handwritten Collection, a fast-growing portfolio of charming bespoke hotels that offer an intimate and stylish hospitality experience.

What strategic direction do you see Accor’s developments going in over the next few years? What is the condition of the industry today, after the pandemic years?

At Accor, we operate based on something we call a culture of innovation that is one of the main pillars of our business philosophy. We support innovation through various initiatives and projects to benefit all of the ecosystems we are a part of.

Seeking opportunities not only to strengthen our presence in the markets we already operate, but to expand our portfolio of brands in new markets, and local destinations is a part of our approach. That is why we often introduce projects and investments in destinations where no international brands were present before. The aim here is to help travellers from all over the world discover the hidden touristic gems, that for example, Eastern Europe is full of starting with Albania (may be not so hidden gem anymore though…), and to provide them with the top global level of the guest experience. Secondly, we aim to support local markets in boosting the tourism and hospitality industry in the long run, leading the development of destinations with the biggest potential.

Great examples of that are, for example, our first hotel in Albania, Mövenpick Hotel Lalëz Durrës, the very first Mövenpick hotel in Serbia, Mövenpick Resort and Spa Fruske Terme which opened on the edge of the country’s oldest national park, the very first ibis Styles in the Slovenian capital or another Mövenpick hotel, Mövenpick Celadna Hotel & Apartments coming to the Czech Republic mountain area – place beloved by the locals, but yet to be discovered by international tourists.

New to the Accor portfolio is Handwritten Collection. The signboard is to count over 250 hotels by 2030. The first property in the Eastern European collection opened in June, in Tallinn, Estonia, followed by the highly anticipated opening of the first hotel of the collection in Poland. The brand is constantly looking for new destinations that fit well into the network. Thanks to the character of the brand, focused on an individual and personal touch in approach to hospitality, we believe it will be a success.

Considering further plans, we are working on new hotels in capitals, secondary destinations and resort locations, we can see also, as said before, an increasing interest in individual hotels and hoteliers joining our network.

I can’t finish answering this question without referring to Albania and our development here. Albania, small yet a stunning country not yet discovered by many, is a hidden gem, maybe not so hidden anymore. I’ve truly fallen in love with Albania from my first visit; unspoiled coastline, amazing cultural heritage, most diverse and beautiful mountains, many virgin territories, most delicious food and not to forget the genuine hospitality of the people. As mentioned before, we have a Mercure hotel opening in the coming months in Tirana with Pullman Drymades Beach, Novotel Tirana, MGallery Green Coast Palase Beach and some others in coming years, so watch this space, all of them are medium to exclusive boutique properties which will provide a unique experience and most importantly, will focus on sustainability. In return, it will bring niche, high-end visitors.