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

The aviation industry has a difficult road ahead when it comes to sustainability. It’s going to require a relative revolution in technology, with ‘electric planes’ or hydrogen planes, or some form of jet engine that doesn’t require a carbon based fuel. And that is going to require the development of an alternative to jet engines probably.

It’s a big ask. It will take time to develop.

This move to home grown and manufactured SAF is a first step – maybe even a baby step in a very long road of innovation. In the long run, US$200 million won’t even touch the sides.

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.