Accor has shifted its Global Luxury and Upscale marketing hub from Paris to Singapore, demonstrating the Asia Pacific region’s increasing significance in these markets. The company stated that Asian consumers now represent nearly half of all luxury purchases worldwide. This shift implies that MICE organizers may need to elevate their events in this region to meet the expectations of attendees from the area.

“Asian travelers are very particular, and the hotel standards in this region are very high. We think Asia is currently a center of creativity, innovation, and transformation, making it the ideal environment for us to elevate our luxury and upscale brands,” says Rick Harvey Lam, Senior Vice President of Global Marketing for Accor Luxury and Upscale Brands, who recently relocated from Paris to Singapore.

Accor believes that Asia, particularly in the high-end and luxury sectors, will eventually overtake North America and Europe as the most important travel market. While China and India are leading the charge, Accor noted that other markets like Indonesia, Malaysia, and the Philippines also have expanding wealthy middle classes with more disposable income. Accor already has a presence in these regions with luxury and upscale hotels and plans to continue expanding its high-end offerings there.

“Asia Pacific’s economic growth has been extraordinary over the past ten years, and as travelers become wealthier, their desire to travel and discover the world increases, making this region the world’s fastest-growing luxury market,” says Michael Issenberg, Chairman and CEO of Accor Asia Pacific. “We now have more than 170 luxury/upscale hotels in the region, with over 37,000 rooms, and over 70 more under development. This translates to Accor opening a new luxury and upscale hotel in Asia Pacific every month on average for the next five years.”

“With Sofitel celebrating its 50th anniversary this year, Accor has a long history in luxury and upscale hotels, and our credentials in this segment continue to grow with our expanding pipeline in this sector, including more than 30 Pullman hotels in China alone,” he said.

The relocation of the Luxury and Upscale Global Marketing team to Asia is a result of Accor’s business model restructuring along geographical lines, with all its brands now categorized into three segments: Luxury and Upscale; Midscale; and Economy/Budget. The Luxury and Upscale segments include Accor’s Sofitel, Pullman, MGallery, Grand Mercure, and The Sebel brands. China is the largest market for Sofitel and Pullman outside of Europe, with 19 and 15 hotels, respectively.

Singapore is a great location to oversee Accor’s expansion in the area due to its central location, superb infrastructure, and business-friendly environment. This move also places the company’s leadership closer to more of its key luxury and upscale markets.

Source: Accor. Artist’s rendition of the Sofitel Sydney Darling Harbour.

As one of the world’s largest and oldest luxury hotel companies, Accor intends to establish its Sofitel, Pullman, MGallery, Grand Mercure, and The Sebel brands as the benchmark for discerning travelers in the Asia Pacific region and globally. In recent months, Accor has celebrated the successful opening of several high-end hotels across Asia Pacific, including Sofitel So Singapore, Pullman Shanghai South, and the signing of Sofitel Sydney Darling Harbour at the Sydney International Convention Centre.