Expansion Accor-ding to plan

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KARAOGLANIAN: Sofitel repositioned and ready for roll out.

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Accor currently operates four Ibis hotels in the Middle East equating to 1230 rooms with the company’s latest property to open in Dubai — the Ibis Al Barsha, near Mall of the Emirates.

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An artist’s impression of the Novotel and Ibis Deira City Centre, Dubai.

Accor Hospitality chief development officer Christian Karaoglanian discusses the development of Sofitel, Pullman and Suitehotel in the Middle East and the success of the economy brand Ibis.

The current focus seems to be very much on Sofitel and Pullman in the Middle East. What are the plans for these two brands in 2009?

Sofitel has undertaken a clear repositioning in the luxury market, going over the last two years through a strategic review of its previous 200 branded properties and keeping in the network only half of them, i.e. the ones able to match, sometimes after a significant refurbishment, the uncompromised level of quality required by the brand.

It has also to be said that in some cases, although the properties were in-line with a Sofitel positioning, the market itself would not corresponding to a real five-star destination, making no sense for Sofitel while another of Accor's brands could be much more adapted to the locations and to their markets. In fact, the Sofitel repositioning has corresponded to a real deep review of the fundamental location/market/brand equation on a worldwide basis.

Subsequently to this strategic review and repositioning, the ground has been cleared for the launch of a wave of a new breed of Sofitel, provided all the proposed projects respect scrupulously the new levels of standards set by the brand.

In order to do so, a very tight and monitored brand approval process has been implemented from the very early stages of development up to the completion of the hotel.

In the Middle East, five new properties are currently under development in the region.

Two will open by the end of year, in Dubai at Jumeirah Beach Residence and in Saudi Arabia at Al Khobar. The Sofitel Bahrain Zallaq, a high-end luxury resort development with a sea water spa, will follow in 2010 in Bahrain.

Furthermore, we should soon be able to announce two major projects, one located on the Abu Dhabi Corniche and the other on Dubai's famous artery, Sheikh Zayed Road.

Accor has taken opportunity of Sofitel‘s evolution and repositioning to reinforce its presence in the upscale segment, where we considered ourselves not being enough diversified nor represented in comparison to our main international competitors. That is where we found a high potential for Pullman Hotels & Resorts, an upscale (but not luxury) brand dedicated to the new trends of business travellers and tailored specifically to the MICE segment.

Pullman properties are designed to create conviviality for hotel heavy-user customers. Two hotels are currently under development in Dubai, one at the Mall of the Emirates and the other at Jumeirah Lakes, with expected completion respectively by end of 2010 and beginning of 2011.

The development of this brand in the Middle East will target major cities positioned (or in the process of positioning themselves) as international MICE destinations - such as Abu Dhabi, Muscat, Doha, Amman and Damascus - as well as international resort destinations with MICE market potential, such as the Dead Sea, Aqaba etc.

Accor will soon open its first Suitehotel in the Middle East. What future can you see for this brand?

We are very pleased about the opening of Suitehotel Dubai Mall of the Emirates in May 2009, as it will constitute indeed for Accor the first development of its all-suite concept brand in the Middle East region, in cross branding with Ibis by the way. With its upper-midscale positioning, Suitehotel targets the mid-stay clientele and proposes an innovative offer with key features such as an all-inclusive offer, all-suites of 30 or 45m² and an innovative F&B offer.

The opening of the first Suitehotel in Dubai will certainly put the brand on a launch pad and pave the way to further developments throughout the Middle East.

Accor will also soon introduce to the Middle East its latest brand: Adagio City Aparthotel, which proposes upper midscale serviced apartments catering to the long-stay business clientele. The brand, created in 2007 in partnership between Accor and Pierre & Vacances, the European leader in leisure residence, has so far proven very successful as 22 properties are already in operation throughout Europe. With a strong development pipeline, the brand should have a network of 50 properties by the end of 2012.

We firmly believe that this concept will meet a need in the Middle East.

The economy brand Ibis has been present in Dubai at the World Trade Centre since 2003, so why is now the time to expand this brand?

Accor was the first international operator to develop an international economy branded hotel in the Middle East, at a time when hotel developments were focused on the high-end upscale market.

Our strategy with our partners has been to develop the network in a highly selective way, by favouring an uncompromised quality of locations, because it is the key to obtaining a sustainable competitive advantage and long-term profitable investments, rather than multiplying the number of hotels on an opportunistic mode.

Accor operates at present four Ibis hotels in the region, representing 1230 keys - Ibis Dubai World Trade Centre, Ibis Deira City Centre and Ibis Al Barsha in Dubai and Ibis Salmiya in Kuwait.

But a decisive step will be reached by end of next year, with not less that six further projects - 1273 rooms -scheduled to open by the end of 2010 in the Middle East.

I say a decisive step in the sense that it will establish the leadership of Ibis on the Middle East economic segment, in providing travellers with a consistent network of brand new properties in 10 key business locations and five different countries. And this leadership will mirror the already existing uncontested number one position of Ibis on the economic European segment, as well as its strong development in Asia.

What are the next properties scheduled to open in the region?

In 2009, Accor will open nine hotels (2104) rooms in the UAE, Jordan, Kuwait and Saudi Arabia.

Beyond the openings mentioned before, our attention will be focused on the introduction of Suitehotel in Dubai and on the penetration of the Jordan market, with the opening of Ibis in Amman, once again the first international economy brand to enter the country.

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