By 2007, the company plans to have 50 properties on the mainland, up from 24 currently, including more than 20 hotels and resorts bearing its five-star Sofitel brand. The company is planning expansion of its low and medium-priced brands.

Issenberg said, “There is unprecedented momentum occurring with China’s tourism, and while there is an aggressive and substantial building programme currently taking place, demand from both local and international travellers continues to grow rapidly.”

Accor said that growth in travel in China and Hong Kong is propelled by backing of strong economy, the increase in the number of approved destination status countries, and the growth in airline services, especially low-lost air carriers. Issenberg reportedly said that by the end of the decade, China will boast the world’s largest and most influential domestic, inbound and outbound markets. “There is no international hotel brand in China aimed at this sector and with domestic travel scheduled to grow five-fold by 2010, there is a clear market need for quality, internationally branded accommodation in major cities, new economic zones, transport hubs and regional centers,” he said.

As part of its expansion, Accor will also open at least eight of its top-tier Sofitel hotels under management contracts in China this year, Issenberg said. In China, Accor will soon launch Sofitel Xian, part of a three-hotel complex in Renmin Square in the heart of Xian. Also, later this year Sofitel hotels will open in Xiamen, Suzhou, Shi Jia Zhuang and two in Nanjing. In addition to the Sofitel openings there would also be new Novotel, Mercure and Ibis hotels opening across China this year. The company, which currently operates four hotels in Hong Kong, will announce plans for a fifth in the near future.

Accor said occupancies across China network is running at 74%, with its hotels in Beijing performing at over 90%. “Our hotels in Hong Kong are also achieving 90% occupancies. Encouragingly – from an operators’ and owners’ point of view, we have also been able to raise our rates, though this only just partially compensates for the losses that were sustained during the SARS period,” said Issenberg.

The company has plans to introduce second Ibis in Chengdu, following establishment of Ibis Tianjin.

“The growth of Ibis reflects the vast increases in domestic and regional travel in China. We have used the Ibis Tianjin as a testing ground for the product and it has performed even more successfully than we anticipated," said Issenberg. “Accor will also introduce its Mercure brand to China later in the year, and the benefit of having our four main hotel brands – Sofitel, Novotel, Mercure and Ibis – present in the China market is that it will make these brands familiar for Chinese travellers visiting abroad.

“With Chinese outbound travel expected to double from its current 25 million to 50 million by 2008, we are working closely with our partners to ensure that we cater for the new travellers in popular destinations such as Europe, Australia, Hong Kong and a number of Asian countries. Already we lead the way with hotels offering additional facilities and services for Chinese travellers, and we will continue to expand that policy.”