Merger of Accor and Intercontinental Hotel Group

26 Aug, 2020
Category: Real Estate
Tags: Hospitality

The merger would create the world's biggest hotel group with a combined value of $17 billion.

Accor and International Hotel Group are discussing for a merger.

Hotel brands are now consolidating in order to survive the pandemic. Large hotel portfolio transactions generally take place in order to achieve strategic leverage and economies of scale. On top of that, entry into new market segments through different brands and concepts, and simple gaining access to loyalty databases can also serve as a strong motive for consolidation.

On the operational level, consolidation also provides a more effective response to the challenges associated with the position of online travel agencies (Airbnb, Trivago) as key distribution channels for hotels.

In short, consolidation and the restructuring of hotel and resorts are inevitable with the aim of increased productivity and increase the scale efforts.

Merger of Accor and Intercontinental Hotel Group

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