French hotel firm Accor has announced its entry in Bangladesh with the expansion of its brand Novotel in Dhaka and Chittagong. The two hotels will have 350 rooms.
Michael Issenberg, Chairman and Chief Operating Officer, Accor Asia-Pacific, said, “Asia-Pacific is one of the most important engines of growth for Accor. We see Bangladesh as a tremendous opportunity for expansion.”
On the company’s plans for India, he said, the hotel company would have 20 hotels operational in India by the end of this year. Accor has plans to open 11 hotels next year across its brands Novotel, Ibis and Formule 1. The company has made investment commitments worth $250 million in the country. While Accor has invested in assets, it has also sold its stake in these assets as part of its global strategy to reduce ownership in hotels. Last month, the company sold 60 per cent stake in 15 hotels under the brand Formule 1 to hotel development firm SAMHI.
Issenberg said the hotel business was cyclical and the challenges of softening of demand and over-capacity of hotel rooms were not peculiar to India.
The company is also looking at opportunities to expand its hotel footprint in Sri Lanka.
(Business Line Report)