We’ve heard on the grapevine that a potential merger could be on the cards for massive hospitality titans Accor and InterContinental Hotel Group.
Rumours of the Accor merger with InterContinental have been circulating the internet and the industry since the beginning of the year, when Accor created a team to examine the possibility of a relationship between the companies.
This was, of course, before COVID-19 hit the industry hard, shutting down global travel. However, according to reports by France’s Le Figaro, the pandemic has created space for both companies to consider the deal on the table.
So, what’s the goss?
Okay, so no confirmation has been made just yet, but if this were to happen, the new combined group would have 1.6 million rooms, in Europe, the Americas, and Asia.
France-based, Accor currently offers around 5,000 hotels in 110 countries, with 60 per cent of its portfolio in Asia, and InterContinental Hotel Group operates 4,150 hotels across nearly 100 countries through seven hotel brands – InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites, and Candlewood Suites.
InterContinental Hotels Group is much more focused on North America, which is home to 60 per cent of its portfolio. InterCon also offers strong growth prospects in Greater China, which accounts for 15 per cent of the company’s rooms.
If the marriage went ahead, we’d be looking at the largest hotel company in the world, overtaking Marriott International, which holds pole position in the market currently.
Both hotel groups have seen revenues dip this year, but both suggest the worst of the pandemic is now in the past.
Is it likely?
According to a report by Proactive Investors, InterContinental Hotels Group PLC investors have shrugged off reports that Accor is still contemplating the union with its London-listed rival.
This is likely to be because, according to the Figaro article, while the board is in favour of a deal, boss Sebastien Bazin is playing it safe for now and has not pursued the matter with IHG’s (French) chairman Patrick Cescau.
Watch this space for more information.
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