Go Back  FlyerTalk Forums > Miles&Points > Hotels and Places to Stay > AccorHotels | Le Club AccorHotels
Reload this Page >

Article: Is Accor the Next Starwood? Whatís Next for Hotel Mergers

Article: Is Accor the Next Starwood? Whatís Next for Hotel Mergers

Old Apr 15, 19, 2:12 am
  #1  
Original Poster
Accor Contributor Badge
 
Join Date: Oct 2012
Programs: Dynasty Frequent Flyer (Elite Plus),Accor Platinum
Posts: 1,743
Article: Is Accor the Next Starwood? Whatís Next for Hotel Mergers

https://skift.com/2019/04/10/is-accor-the-next-starwood-whats-next-for-hotel-mergers/


I would have thought this is unlikely considering Accor is the only major european hotel owner and of course it is a very large company.

But still it is something to consider. I would guess if gross bookings was around 18 billion then with all the growth and takeovers that happened in 2018 this would be close to 20 billion this.
tris06 is offline  
Old Apr 15, 19, 5:23 am
  #2  
 
Join Date: Feb 2012
Location: BSL
Programs: AA (EXP); among others :)
Posts: 1,751
Don't think so. Accor is not just a European company, it is first and foremost a French company. It's been the long-declared goal of the French government and corporate leadership world to create "national champions" out of their blue chip companies, the few of them left. See Sanofi and Alstom. Pretty sure that given the market share and number of employees of Accor in France, the government will want to have a say in any merger or takeover.
Also, what this article didn't mention: Employees and the founders families - groups both very much in favor of keeping things in their own hands - together own about 20% of the shares.
tris06 likes this.
bhomburg is offline  
Old Apr 15, 19, 10:21 am
  #3  
 
Join Date: Feb 2018
Programs: Bonvoy Amb , LCAH : Gold, Skywards : Gold
Posts: 1,449
If Marriott did buy Accor, then ALL will be Bonvoyed
kaizen7 is offline  
Old Apr 15, 19, 10:54 am
  #4  
Original Poster
Accor Contributor Badge
 
Join Date: Oct 2012
Programs: Dynasty Frequent Flyer (Elite Plus),Accor Platinum
Posts: 1,743
I personally never thought Accor was a small hotel operator and hence too big to be eaten unless the Chinese tried it on which already failed...Also where do people think Marriot could borrow more money after just absorbing starwood. I only realisticly considered the chinese as their loans can be cheap and plentiful if the government is really pushing to get home grown champions.
tris06 is offline  
Old Apr 15, 19, 10:56 am
  #5  
 
Join Date: Jan 2003
Location: London, UK.
Programs: SQ LPPS, A3 *G, BA Silver - renewed on only two sectors and no other OW flying, is BA desperate?.
Posts: 1,198
I'm not sure about this.

I often used Starwood properties in particular Sheratons over many years but as a brand it all seemed very static but then started to shrink indeed it was a number of Sheratons becoming Sofitels that introduced me to Accor.

Sheraton may therefore have been ripe for the picking, solid but going no where new and while the service offering was good and dependable there was no growth only contraction in a world where it was increasingly difficult to survive.

Accor on the other hand is growing, vibrant, has relevant offerings right across the market from Ibis to Raffles and touches every market segment between. I see it going from strength to strength in its own right rather than anything else.

If only there was a better offering in Scandinavia and the Nordics.
lhrpete is online now  
Old Apr 15, 19, 11:14 am
  #6  
 
Join Date: Jul 2018
Location: Italy
Programs: Accor Hotel, Hilton Honors, Emirates, Alitalia, Amex
Posts: 906
Originally Posted by kaizen7 View Post
If Marriott did buy Accor, then ALL will be Bonvoyed
and, why not, a great opportunity to have the daily Apple even at Marriotts !
kaizen7 likes this.
Dav77 is offline  
Old Apr 15, 19, 11:23 am
  #7  
 
Join Date: Jul 2003
Location: CT/ Germany - Ich spreche deutsch
Programs: UA Plat, AA Gold, LH Silver, Bonvoy LTTE, HH Dia, Hyatt Disc, PC Plat, CC Gold
Posts: 4,041
Originally Posted by lhrpete View Post
I'm not sure about this.

I often used Starwood properties in particular Sheratons over many years but as a brand it all seemed very static but then started to shrink indeed it was a number of Sheratons becoming Sofitels that introduced me to Accor.

Sheraton may therefore have been ripe for the picking, solid but going no where new and while the service offering was good and dependable there was no growth only contraction in a world where it was increasingly difficult to survive.

Accor on the other hand is growing, vibrant, has relevant offerings right across the market from Ibis to Raffles and touches every market segment between. I see it going from strength to strength in its own right rather than anything else.

If only there was a better offering in Scandinavia and the Nordics.
You do realize that Starwood was NOT just the Sheraton brand? Starwood had vibrant brands like W Hotel and offering across the market too from the high-end St. Regis to the lower end Four Points by Sheraton.
NYCtraveler likes this.
christianj is offline  
Old Apr 15, 19, 1:10 pm
  #8  
 
Join Date: Feb 2018
Programs: Bonvoy Amb , LCAH : Gold, Skywards : Gold
Posts: 1,449
I doubt Marriott will pull another huge acquisition just after they acquire Starwood.
The merging between Marriott and Starwood still quite messy up to this point.

Even if Marriott did have financial capability to acquire Accor, adding Accor integration to the mix will cause further issue and more disgruntled elites.

However, combining Marriott and Accor can create a true global hotel chain. As traditionally, each chain is quite weak at others strong area. And adding Accor less luxury brands to Marriott portfolio that mostly upper end offering will complement the footprint further.

In Asia, where both side have quite limited footprint, combined they will have better coverage and also Accor budget brands will plug Marriott lack of budget offering in the area. (Moxy's rate is still double than Ibis' (not budget) rate)

I guess if Marriott did pull this, the next sensible move will be securing a global apple supply chain to supply these millions of rooms with apple
Dav77 likes this.
kaizen7 is offline  
Old Apr 15, 19, 1:48 pm
  #9  
 
Join Date: Jul 2018
Location: Italy
Programs: Accor Hotel, Hilton Honors, Emirates, Alitalia, Amex
Posts: 906
I can see too many overlapping brands on mid level

i canít imagine how they could manage Novotel/Mercure/Four points/Moxy/AC hotel without devaluations or underestimation of some of them ...or without invest lot of money more to give some of them as something really different. Except in incorporating some brand in just one.

maybe on high level brands should be easier, since every brand has its own identity and there are much less properties

even from a customer point of view, I canít think at so many benefits in term of rates ...

of course, there will be more opportunities to spend nights inside a chain, as positives
Dav77 is offline  
Old Apr 16, 19, 12:12 am
  #10  
 
Join Date: Mar 2019
Programs: BA
Posts: 44
I don't find that article particularly well-researched. If we go by revenue, Accor is the fourth-largest chain in the industry. (The three largest chains by revenue are Marriott, Hilton, and Wyndham--in that order.)

Marriott can't take over Accor, they cannot stomach the integration of Accor at this point (they're still working heavily on Starwood which was much smaller than Accor.) Wyndham and Accor is not a good fit. For Hilton, the integration of Accor would be a much bigger challenge than Starwood was for Marriott: There's more difference in corporate cultures and, once again, Accor is bigger and more complex than Starwood.

I could see something like Accor and IHG or Accor and some smaller player going together. But that would likely be a merger. Or, it would be Accor doing the acquisition as opposed to being the target.
tris06 and happygolucky_nomad like this.
newflya is offline  
Old Apr 17, 19, 10:19 am
  #11  
 
Join Date: Jan 2003
Location: London, UK.
Programs: SQ LPPS, A3 *G, BA Silver - renewed on only two sectors and no other OW flying, is BA desperate?.
Posts: 1,198
Originally Posted by christianj View Post
You do realize that Starwood was NOT just the Sheraton brand? Starwood had vibrant brands like W Hotel and offering across the market too from the high-end St. Regis to the lower end Four Points by Sheraton.
Thank you - yes I did realise/know the scope of the Starwood brand but my travels took me to Sheratons.
Dover2Golf likes this.
lhrpete is online now  
Old Apr 22, 19, 2:58 am
  #12  
 
Join Date: Jun 2009
Location: SIN
Programs: TK-G | Accor G | Marriott P | SPG P| Hilton S
Posts: 3,696
Originally Posted by kaizen7 View Post

In Asia, where both side have quite limited footprint, combined they will have better coverage and also Accor budget brands will plug Marriott lack of budget offering in the area. (Moxy's rate is still double than Ibis' (not budget) rate)

I guess if Marriott did pull this, the next sensible move will be securing a global apple supply chain to supply these millions of rooms with apple
I stand to be corrected but I do not think Moxy is at the same class with Ibis...... I only see Moxy Bandung which surprised me as my expectation is Ibis type room with hanging TV but it is not even close. I think it is more Mercure - in my opinion.
lingua101 is offline  
Old Apr 24, 19, 12:05 am
  #13  
 
Join Date: Mar 2019
Programs: BA
Posts: 44
Originally Posted by lingua101 View Post
I think it is more Mercure - in my opinion.
No way, Moxy's rooms are way smaller.

I think Moxy is like a new ibis styles when I look at the rooms both size- and feature-wise. Breakfast quality is also similar.

IMO, Moxy is superior to ibis styles only with regard to the public areas. Marriott figured sexing up the public areas is a cost-effective way of improving the customer experience. Supposedly, Millennials--a key demographic for both Moxy and ibis styles--like communal work areas as well as nice bars (both cocktail bars as well as higher-quality espresso bars).

An enlarged bar/lobby area is cost-effective for two reasons. One, the space requirement is modest (much less extra space is needed for an expanded bar than for larger guest rooms). Two, an attractive bar can finance itself by generating incremental spending both from hotel guests as well as non-hotel guest bar visitors.
submonte likes this.
newflya is offline  
Old Apr 24, 19, 8:23 am
  #14  
 
Join Date: Jul 2018
Location: Italy
Programs: Accor Hotel, Hilton Honors, Emirates, Alitalia, Amex
Posts: 906
Originally Posted by newflya View Post
No way, Moxy's rooms are way smaller.

I think Moxy is like a new ibis styles when I look at the rooms both size- and feature-wise. Breakfast quality is also similar.

IMO, Moxy is superior to ibis styles only with regard to the public areas. Marriott figured sexing up the public areas is a cost-effective way of improving the customer experience. Supposedly, Millennials--a key demographic for both Moxy and ibis styles--like communal work areas as well as nice bars (both cocktail bars as well as higher-quality espresso bars).

An enlarged bar/lobby area is cost-effective for two reasons. One, the space requirement is modest (much less extra space is needed for an expanded bar than for larger guest rooms). Two, an attractive bar can finance itself by generating incremental spending both from hotel guests as well as non-hotel guest bar visitors.
on my small experience, limited to 2 Moxy in Italy and all the Mercures in the same country, Moxy win easily...not only, as you correctly say, because lobby and common areas are really very nice, but also about rooms (modern, stylish, not smaller, with better amenities)

Having experienced also some Mercures in Asia or newly renovated in Europe, I can say Mercure rooms are better ...and have nothing to complain also on common areas

I have the opinion that Mercure change too much from one country/property to another, so is difficult to compare this brand in its totality, while (I can suppose) Moxys are more standardized
Dav77 is offline  
Old Apr 24, 19, 9:01 am
  #15  
 
Join Date: Jun 2009
Location: SIN
Programs: TK-G | Accor G | Marriott P | SPG P| Hilton S
Posts: 3,696
Originally Posted by Dav77 View Post


on my small experience, limited to 2 Moxy in Italy and all the Mercures in the same country, Moxy win easily...not only, as you correctly say, because lobby and common areas are really very nice, but also about rooms (modern, stylish, not smaller, with better amenities)

Having experienced also some Mercures in Asia or newly renovated in Europe, I can say Mercure rooms are better ...and have nothing to complain also on common areas

I have the opinion that Mercure change too much from one country/property to another, so is difficult to compare this brand in its totality, while (I can suppose) Moxys are more standardized
like I said I only see the room at Moody Bandung. They even have Suite.
​​​​​​




Dav77 likes this.

Last edited by lingua101; Apr 24, 19 at 9:09 am
lingua101 is offline  

Thread Tools
Search this Thread