5 minute read
HM Q&A: XAVIER GRANGE
Classic meets creativity
ACCOR’S GLOBAL CHIEF DEVELOPMENT OFFICER SOFITEL, EMBLEMS, MGALLERY, XAVIER GRANGE, SPOKE TO RUTH HOGAN ABOUT THE EVOLUTION OF LUXURY LIFESTYLE HOTELS, GROWTH IN BRANDED RESIDENCES AND EMERGING MARKETS.
Since Accor’s global restructure in early 2023, Xavier Grange, has narrowed his focus from 40 brands across southern Europe to four favourable brands in the luxury lifestyle segment as Global Chief Development Officer Sofitel, Emblems, MGallery.
With a portfolio of 250 hotels globally, Grange – alongside Sofitel, MGallery & Emblems CEO, Maud Bailly – is on a mission to grow this lucrative division globally.
Xavier, with the growth of luxury lifestyle hotels in recent years, what are owners and guests looking for today?
We’ve seen this trend with lifestyle very strongly over the last few years – that’s why we have created this luxury lifestyle division. When there is a new project, very often, we propose both scenarios – one with a classical brand and one option with a lifestyle brand. It works quite well.
This year, I was amazed by the relaunch of Sofitel. A classic brand, 60 years old, and we have never seen so many Sofitel signings.
It means that there is the market for both lifestyle and classical brands. This year, we’re going to sign 12 new Sofitel globally, which I think will be a record.
With this latest evolution of Sofitel, tell us about those conversations with owners to bring properties up to this new standard.
Development is key. If you want to keep the brand at the right level, you need to grow fast.
We also need to renovate the hotels that are not up to the standard that we want. Over the last two years, in our meetings with owners, not only have we convinced them to renovate a lot of hotels, but we have also convinced them to sign new projects with us.
More than 80% of the signings are with new owners, which is very interesting because you can see that there is a real attraction.
Now we have this focus with a dedicated organisation, it means that we have more signings for all the brands. We announced the development of Sofitel Legend one year ago, and this year we will sign three new Sofitel
Legend internationally – in India, Egypt, and Europe. It shows that that is a real market for high quality, luxury, more upscale than Sofitel.
Is India now an important focus for luxury lifestyle development?
It’s very important and, to be honest, we didn’t develop enough in the country in the past. There was a strong push over the last few months. We had only one Sofitel in India – in Mumbai – and this year we’re going to sign between three and four new Sofitel in the market, for the first time in 12 years. It’s a fastgrowing market. Of course, we want to launch a Collection brand like MGallery or Emblems, but Sofitel and Sofitel Legend are really what the market is looking for.
What about the China market?
MGallery and Sofitel are very strong in China. We signed five MGallery hotels since the beginning of the year in China. The last few months, I can see a real push for unique, curated hotels in resort destinations in China, not just city centre.
Tell us about the rise of branded residences within the portfolio
If you look at the market over the last few years, approximately 70% of the new luxury hotels that have been developed globally have included branded residences.
Being able to sell those units up front helps the developer to finance the project so it is a key component for the development of luxury hotels. But we also have standalone branded residences with no hotel facilities, or very limited.
We are developing a branded residences project with Sofitel. We signed three this year with more than 800 units. When you look at the interior design of the one in Dubai, as an example, it’s really amazing, because you can feel that you are in Dubai, but you can also feel the Sofitel DNA.
Development of branded residences is very precise, very technical – even more so than hotel development. Local developers have the experience. We signed one in Vietnam recently, a few hours from Hanoi, because the developer knew that people are going there for the weekends, for holidays.
Where are you seeing the most opportunity, in conversion or new-build projects?
Over the last few years, we were thinking that conversion would be the majority of development. That’s not the case. Outside of Europe, the portion of new build is quite high, even higher than conversion. But we’re pushing for conversion. It’s better for us. It’s quicker completion, it’s better for the planet.
Tell us about your expectations for 2025 and any development targets you are working towards.
The growth of collection brands will continue to accelerate. More than 30% of the signings of all the international groups are coming from collection brands because owners and guests want unique hotels. Here in Australia, there’s only a few projects, but more will come.
I strongly believe in the growth of the ultraluxury segment of these collection brands. People are looking for 60-70 rooms maximum, resort destination, with a strong ADR potential. We are signing Emblems with ADR of more than €1,000.
