Accor's Asian plans unaffected by Bali bombing<\/p>\n
Dow Jones, Bangkok<\/p>\n
French hotel and leisure company Accor SA, one of the world's
\nlargest hotel chain operators, said Wednesday it still plans to
\ndouble the number of its properties in Asia-Pacific over the next
\nfive years, despite a recent terrorist attack in Bali.<\/p>\n
Accor currently manages 197 properties in 15 countries in the
\nAsia-Pacific region, including eight it fully owns, out of its
\nroughly 3,900 hotels and resorts worldwide.<\/p>\n
David Baffsky, chairman of Accor's Asia-Pacific operations,
\nsaid the negative impact of the Indonesian resort island bombing
\non room bookings has so far been limited to a few properties in
\nthe region and was not expected to be long-lasting.<\/p>\n
\"We have already seen substantial shifting of activity to
\nother destinations in the region. It is so far a localized
\nissue,\" Baffsky said.<\/p>\n
In Bali itself, the Mercure Kuta Bali hotel located close to
\nthe bombing site has seen little short-term impact as it was used
\nby media and security after the bombing, but is suffering a drop
\nin forward bookings, Baffsky said.<\/p>\n
The group's other property in Bali, a Novotel, on the other
\nside of the island now has a 30 percent occupancy rate, down from
\nnormally over 70 percent at this time of year, Baffsky said,
\nadding Accor's 22 other Indonesian hotels were little affected.<\/p>\n
In Thailand, which benefited most after the Bali bombing, the
\ngroup's forward bookings are currently up 3 percent-4 percent on-
\nyear in part due to a shift from Bali and partly because of the
\nstart of the high season, Baffsky said. However, he added on the
\nThai resort island of Phuket, Accor is suffering a drop in
\nbookings like other hotel operators.<\/p>\n
Industry sources said Phuket hotels have suffered a 10 percent
\nor more decline in their bookings due to travel warnings issued
\nby certain countries and on concerns the island could become a
\nterrorist target. The Thai government is denying such risks and
\nhas criticized the warnings.<\/p>\n
Baffsky was speaking to reporters at the official opening of
\nthe group's 17th property in Thailand. The new property is the
\nfourth Thai property to be placed under the Sofitel brand, the
\ngroup's luxury chain, and the 158th Sofitel worldwide.<\/p>\n
Accor signed late last year a 15-year management contract for
\nthe Sofitel Silom, a 38-story and 454 room hotel owned by Thai
\nproperty developer Sansiri PCL.<\/p>\n
Baffsky said domestic customers account for over 70 percent of
\nAccor's Asia-Pacific demand. This means bookings by residents in
\nthe countries where it operates helps it from being harder hit by
\nfluctuations in global tourism.<\/p>\n
Baffsky said a main area of growth for the group in the region
\nover the next five years will be China where it hopes to bring
\nits presence \"to a total of 60 to 100 properties under
\nmanagement, from 18 now.\"<\/p>\n
The group also wants to add more properties in Japan, where it
\nalready has four hotels, and in Korea, where its first property
\nis to open soon.<\/p>\n
Accor also aims to reenter the Indian market after a recent
\nexit, he said.<\/p>\n
Serge Ragozin, Paris-based Accor's executive senior vice
\npresident, said the group will also continue to look for
\nopportunities to expand in other parts of the world despite the
\ncurrent situation. Since the Sept. 11 attacks in the U.S. last
\nyear, Accor has continued to expand and has only postponed plans
\nfor three new U.S.-based hotels, he said.<\/p>\n
Accor earlier this week bought a two-thirds stake in Egypt's
\nGezira Hotels and Tourism for $39 million, he said.<\/p>\n
Ragozin also said despite a recent acquisition in Germany,
\nAccor was still talking to another German group, Steigenberger
\nHotels & Resorts, \"like everybody else in the industry.\"<\/p>\n
According to earlier reports, leading hotel groups Hilton
\nGroup PLC and Starwood Hotels & Resorts Worldwide are also eyeing
\nSteigenberger.<\/p>\n
In early October, Accor signed agreements with German hotel
\noperator Dorint AG and its primary shareholder, which will give
\nthe French group a 30 percent interest in Dorint and add another
\n93 hotels to the group's already strong presence in Germany, plus
\nanother 20 properties in development. The deal's implementation
\nis subject to the approval of the EU's competition authorities.<\/p>\n
Accor announced Tuesday third-quarter revenue was down 4.2
\npercent on-year to 1.82 billion euros, below market expectations.
\nOver the first nine months, revenue was down 1.7 percent to 5.40
\nbillion euros.<\/p>",
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