HOTELS: Accor & IHG merge into world’s largest Hotel group?

There are a couple of press reports that French hotel group Accor is contemplating a with Intercontinental Hotel Group (IHG). According to Reuters UK, Accor shares have risen as a result of these reports.

Accor is made up of brands like:

• Fairmont
• Ibis
• MGallery
• Pullman
• Raffles
• Sofitel
• Swissôtel

While, UK based IHG hosts brands such as

• Candlewood
• Crowne Plaza
• Holiday Inn
• Hotel Indigo
• Hualuxe
• InterContinental
• Kimpton
• Regent
• Six Senses
• Voco

World’s largest hotel group

If these two behemoths were to merge, they would become the worlds largest hotel group, with a combined 1.6 million rooms under management. The current largest hotel group, Marriot only has 1.4 million rooms.

The two groups have geographically different dominance, with IHG being strong in the USA, and Accor being strong in Europe.

Both groups run multiple brands, in fact combined they would commandeer over 50 disparate brands.

2PAXfly Takeout

If you are planning trans-Tasman or international travel in the next 12 months – and who isn’t? – then this is a great way to earn Gold with Air New Zealand, and for getting gold recognition on 26 Star Alliance members from Singapore Airlines and Thai to Asiana, ANA and Lufthansa.

Air New Zealand fares appear significantly lower than Qantas at the moment, in most classes, so why not save some money, and match your status? You will also travel on either their 787 or brand new A321neo’s compared to Qantas A330’s where you might have to endure the flying kangaroo’s business suite product (ironic yuk!)

It seems like it’s status match nirvana at the moment.

Current reports indicate that this is a thought bubble at the executive end of Accor, and there is no indication that there are actually talks between the two groups yet.

Hotels, as well as Airlines and Airports have been hammered by the COVID-19 pandemic. Maybe a merger and the synergies that could be gained would be one way to help this industry survive. A combined loyalty program would be epic – even if not the most attractive in terms earned points or redemptions.

I have been an IHG Ambassador member for the last 5 or so years, and appreciated the benefits this gave me until recently when the diminishing benefits have become woefull.