International hospitality chain Accor is focusing on expanding its premium brands in Thailand and around the globe, banking on projections for rising global travel over the next decade, India's growing middle class and China's strong outbound market.
Karelle Lamouche, chief commercial officer for premium, mid-scale and economy (PM&E) brands at Accor, said the company is a leader in mid-scale and economy brands at the global level, except in the US and China, but not in the premium segment.
Ms Lamouche said Accor began distinguishing the PM&E segment from the luxury and lifestyle segment 18 months ago to focus on each individual brand.
Globally, PM&E brands account for 90% of total hotels and 66% of total fees in Accor's portfolio.
As of Sept 4, the chain's mid-scale and economy hotels tallied 1,780 and 2,826 properties, respectively.
Accor also operates 446 premium hotels, which allows room for growth, including notable brands such as Pullman, Mövenpick and Grand Mercure.
Key markets for new premium hotels include the Middle East and Asia, especially Thailand, Indonesia and Singapore, she said.
"I don't think we fear oversupply at this stage," said Ms Lamouche.
"You may see it in some markets or cities, but at the global level, we're not there yet."
She said the travel industry is driven by 7 billion travellers, which is projected to reach 15 billion in 10-15 years.
Another propulsive force is the growing middle class in large markets such as India, which accounts for 30% of revenue.
The middle class is forecast to reach 60% of revenue in 5-10 years, said Ms Lamouche.
Indian airlines are also estimated to grow their combined fleet over the next few years, she said.
China, another nation with a massive population, could strongly rebound given the huge flow of Chinese tourists to Europe, the Middle East and Southeast Asia, said Ms Lamouche.
With Accor's extensive network, it can balance any conflict or macroeconomic downturn affecting a specific part of the world, she said.
The company owns 21 brands in the PM&E segment, including the economy brand ibis and mid-scale brand Novotel.
Ms Lamouche said Accor does not plan to launch a new brand in the short term, instead expanding existing brands to tap extended stays or the residential market, similar to the focus of Novotel Living.
In Thailand, Accor operates roughly 75 hotels in the PM&E segment, featuring 17,919 rooms across 10 brands.
Thailand is among the top-performing markets in the region.