Accor isn’t always top of mind for US travelers looking to book a hotel.
To be honest, you probably aren’t thinking about what’s next.
But there’s every reason to take another look at the Paris-based hotel conglomerate, whose brands include Raffles, Fairmont and Sofitel. Part of that is credited to Maud Bailly, CEO of Accor’s Sofitel and Sofitel Legend, and his MGallery and his Emblems, the company’s two soft brands that compete in the boutique hotel space. Thing.
Bailly took up the role in early 2023 after previously serving as Accor’s CEO for Southern Europe. She has a job that is perfect for her. Sofitel celebrates its 60th anniversary this year, and while it has gained significant brand recognition in the luxury hotel sector, it faces stiff competition from new brands introduced almost daily from each of Accor’s competitors. Marriott, Hyatt, Hilton.
Emblem is a luxury collection launched at the end of 2021 and is still awaiting the opening of its first hotel. MG Gallery is showing signs of becoming a major growth driver for Accor, but it also competes directly with Marriott’s Autograph Collection and Hilton’s Curio Collection.
But a year into her tenure as top boss overseeing the three brands, there are signs of early success under Bailly’s guidance.
TPG met with Bailly last month at the International Luxury Travel Market Conference in Cannes, France, where the Accor executive said he will embark on a three-phase growth plan under the brand he will oversee. He gave credit for spending nearly a year traveling around the world. .
“We literally traveled around the world and looked at about 240 hotels to get a clear understanding of where we were, where we lacked clarity, and what our network looked like. .I mean, I really understand,” Bailly said. “This is the beginning of a mission. We have been fed on these journeys.”
Sofitel, MGallery, what does the emblem represent?
Digesting the messages and experiences seen on the ground allowed us to modify the plan originally designed at Accor’s headquarters in Paris. The second step in Bailey’s plan involved communicating what his DNA and expertise is for each brand.
daily newsletter
Get rewarded in your inbox with the TPG Daily newsletter
Join over 700,000 readers and get breaking news, in-depth guides, and exclusive deals from TPG experts.
MGallery is known for its design-forward, luxury hotels and “Moments to Remember” experiences for guests.
TPG toured the new Domaine Reine Margot Paris-Issy last month, and some memorable moments included visiting rum favorite Le Monastic’s speakeasy in a former chapel. was. The only original sin on the tour is to have another drink at Le Monastique or sip on a roasted vegetable bouche with fun and friendly staff at the hotel restaurant, Le Marguerite 1606 (named after that year). It didn’t last long. Queen Margot first used the grounds as a royal retreat).
Additional MGallery hotels are expected to open in Kenya, France, Japan and Poland this year.
Accor launched Emblems as an ultra-luxury soft brand to be a sibling to MGallery, focusing on independently-minded properties that are flagship hotels in destinations.
Sofitel is the trio’s luxury formal hard brand under Bailey’s watch. The brand is known for offering French ‘art de vivre’ and hospitality, as well as providing a local feel at each destination. But travelers may point to Sofitel as the place where Bailly faces its biggest challenge.
Sofitel has some great properties, including Sofitel Legend Old Cataract Aswan, overlooking Egypt’s Nile River. Sofitel Legend Casco Viejo is a TPG Best Hotel of 2023 award winner and part of the Sofitel Legend derivative brand. However, the brand also has some properties that need renovations and upgrades to bring them in line with the luxury levels of other hotels in the Sofitel network.
“We identified several hotels that clearly needed renovation, and with great support from the owners, we began renovating them,” Bailly said. “The majority of owners welcome this approach.”
Sofitel Bangkok Sukhumvit underwent a lobby renovation last year and also opened Maison Mizuki, a Japanese restaurant and whiskey bar. The highly rated Sofitel Legend Metropole Hanoi is undergoing an upgrade to its rooms and suites. Sofitel by the Palm debuted a new combination of suites and private villas late last year.
That’s probably just the beginning for Sofitel, Sofitel Legend, MGallery and Emblem.
The third stage of the brand is growth mode, and Accor seems to have wisely chosen to move Mr. Bailey into the role of brand builder. As CEO of Southern Europe, Mr. Bailey oversaw around 2,000 hotels in all price ranges, from budget Ibis to Accords. A more upscale brand.
Managing a portfolio of 240 hotels may seem like a much easier task. Still, it’s clear that this number is on a rapidly rising trajectory. Having people with experience running and growing across the region will help maintain and drive momentum.
According to Accor’s development page, 120 Sofitel hotels are currently open and 26 more are in the development pipeline. In addition to his 121 hotels already open, 43 of his MGallery hotels are under construction. Emblem has five hotel deals in place and plans to open 60 by the end of 2010.
Asked whether the current financial climate with high interest rates and construction costs could slow things down, Bailly said: “We’ve received so many calls from investors asking us to develop a new hotel with them. No,” he said. “People have cash.”
“We are in the midst of a record year and the number of calls we receive each week to secure hotels is increasing,” she later added.
But what about the US?
All the talk about brand consistency and growth is well and good, but Bailly acknowledged that the U.S. is “the most difficult market we’ve ever had” in terms of gaining a larger footprint. There is. She believes there is still great potential for MGallery to expand in the United States.
The brand currently operates three hotels in North America, including Hotel Andorra Seattle, which opened in late 2022. MG Gallery is a British company with hotels in Miami, Colombia and Vancouver, as well as Mayaria Tulum Hotel & Residences in Tulum, Mexico. — Scheduled to open later this year.
“Possibility of development with M Gallery” [in the Americas] It’s amazing,” Bailly said.
It may seem difficult to convince American hotel owners to sign with MGallery Hotels when Marriott Autograph Collection and Hilton Curio are better known in the United States, but M The gallery facilities have seen strong early performance and have all been open since early 2021. — enough to attract more deals.
As for Sofitel in the US, Bailly acknowledged there is work to be done.
“We have a tradition, and my biggest challenge is that Sofitel has a clearer, more commercial and marketing animation, strong standards, people who truly care about the brand, and a truly engaged… “It’s about proving to people that we’re entering a new era with a dedicated brand organization that has the power of Sofitel,” she said.
Accor leaders haven’t been too specific here about what the brand’s future will convey, but renovations seem certain to be in the pipeline for many of Sofitel’s properties. This helps introduce the brand to travelers who have had great experiences at the brand’s top hotels in the Americas, such as Sofitel Mexico City Reforma and Sofitel Mexico City Reforma. Sofitel Bal Calablanca in Colombia – But you won’t find a similar atmosphere at Sofitel properties in the United States. The brand currently has hotels in Philadelphia, New York City, Chicago, Los Angeles, and Washington, DC.
“In many regions, Sofitel is very strong and very well-respected. In the U.S., we had some properties that desperately needed renovation,” Bailly said. “We’ve had very constructive discussions with the owners. It’s in our mutual interest to renovate. It’s a win-win situation, just as doing nothing is a loss. It is.”
So just because Sofitel is celebrating its Diamond Jubilee in 2024, don’t assume it’s a luxury brand past its prime. If the recently opened Sofitel Legend and Sofitel Bar in Panama are any indication, travelers to the Americas will be very excited. in this area for many years to come.
Related books: