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Accor Asia to spread Mercure net in India

Our Bureau

BANGALORE, March 7

ACCOR Asia Pacific (AAP), part of the French hospitality, travel and tourism conglomerate, is set to spread its Mercure brand across India.

It has identified properties in Delhi, Puri and Chennai for the purpose.

It has already heralded the brand with the relaunch of the Guestline Hotel in Mumbai, with the label `Mercure Hotel Guestline, Juhu, last September.

MIPL, which owns Guestline Hotels in Mumbai, Bangalore and Tirpuati, has entered into a strategic alliance with AAP for relaunching them as Mercure brand. AAP will also be scouting for opportunities outside this joint venture to expand the Mercure brand.

AAP has built a hotel network comprising over 3,000 hotels across the globe. Ninety per cent of its hotels fall under the business and budget class category (with brands like Mercure, Novotel and Ibis), in which the company excels. It has also a strong p resence in the luxury segment, where its brand, Sofitel, competes with leading international names.

In India, however, Accor has focussed its attention on the mid-market and business class segment as it estimates them to be of greater business potential than the luxury category hotels.

It entered India through a management contract with Surya Hotel in Delhi, to which it lent its luxury category brand, Sofitel. However, it withdrew its association from the hotel.

It has relaunched the brand through its new association with properties, owned by businessmen in Ahmedabad and Jodhpur. The hotels are slated for opening this year.

Talking to Business Line, Mr. Arnauld Kindt, Chief Operating Officer of Meris International Hotels Private Ltd, the joint venture company of MIPL and AAP, said Accor was currently engaged in investment and management negotiations to extend its network to 10 hotels within the next year in India.

It has already finalised four hotels, two in Chennai, one each in Delhi and Puri, Orissa. Accor, which extends only franchise management contract, has tied up with Grand Orient and Victoria, properites of Hans Plaza in Delhi and Puri. Except, Victoria, a ll the other hotels will be relaunched under the Mercure brand soon.

In the case of Sofitel venture, Accor was contemplating to take equity. However, Mr. Arnauld said it will depend on how sound the business prospects are.