Accor Remains Optimistic Despite Poor Results

It now seems that Accor remains in high spirits despite its poor turn out in 2009. The company is now predicting that its revenue per available room in China will drop by 20 to 30 percent this year. They said that this is largely due to the result of a wide range of new supplies coming into the fast growing market.

The Accor Asia Pacific chairman, Michael Issenberg, said that despite these rough conditions, he believes that the situation will become more stabilized in 2010. He did note that next year, they are not going to see anything very dramatic in terms of drops in China. In China, where there are still a lot more supplies coming in, there is still big demand for growth.

The global economic downturn that has been really hurting the tourism industry, has really been putting a hurting on the hotel sector. In fact, other operators like InterContinental Hotels say that recovery for the industry could be as far as two years away.

Accor did note that they are planning on investing about 809 million euros in the hotels in the Asia Pacific for 2010. This is roughly in line with the amount the company invested in the region this year. As of right now, Accor operates 380 hotels in the Asia Pacific region. This includes 85 hotels that will be up in China by the end of the year.

Right now China is one of the company’s most important markets in all of Asia. This is home to 24 of its 54 hotels opening in the region by the end of the year. Thus, it’s safe to say that Accor is placing a lot of hope in China.