Accor’s French luxury brand Sofitel is set to expand and upgrade its network of hotels in Australia and New Zealand among 30 destinations globally in the coming years as the brand seeks to win favour with guests and owners 60 years on from its launch.
“We are going to open 30 new Sofitel in the world in the three coming years – in Vietnam, in Mexico, in Jaipur, in Cairo, in Australia, in New Zealand, everywhere. The brand is back,” Sofitel, MGallery and Emblems CEO, Maud Bailly, declared at the official reopening of Sofitel Sydney Wentworth on Thursday evening.
Now with 120 hotels, including over 30,000 rooms, globally, 24% of the Sofitel network is in Asia Pacific.
“It’s a powerful luxury brand. In Australia, it’s number one in its segment, with seven hotels and 2500 rooms,” Bailly said.
“Nevertheless, competition is fierce and dynamic, and we need to be humble.”
Alongside signing new hotels all over the globe, Bailly is focused on reigniting the brand promise and “cleaning” the network.
“26% of our Sofitel network is under renovation. We are elevating the brand positioning, the brand identity, and elevating the network.”
Sofitel Noosa Pacific Resort will be among the Australian properties to be fully refurbished in line with the luxury brand’s new direction, according to Bailly, who was forthcoming with media about the challenges the Sofitel brand has faced.
“We had a two-speed network, and discrepancy in scaling credibility and scaling luxury,” she said.
“Luxury can’t cope with any compromise and quality of the product or the service.
“I am meeting each owner and trying to convince them to renovate, or to rebrand, or to deflag.
“We managed to convince 26% of owners in the Sofitel network to renovate, 8% of MGallery – wonderful.
“The other option is to find another brand. We have 51 brands in Accor portfolio. Maybe they don’t want to renovate up to the standards of my four brands (Sofitel, Sofitel Legend, Emblems and MGallery), but maybe they can become another brand, maybe premium or midscale.
“They would be happy, and it would be a solution for everyone, because there will remain within the Accor portfolio.
“Option three is exiting the property; deflag. I exited six properties so far.”
Bailly said it’s important in her role to educate owners on the “the why” of renovations.
“When you renovate, it’s a win, win dynamic,” she said.
“You increase your ADR, you increase the desirability of the product. You manage to reduce your turnover. You attract more talent. People stay longer with you. So, it’s a virtuous circle, as much as detractors create vicious circles.”
The revival of a Sydney icon
The grand reopening of Sofitel Sydney Wentworth brought together key leaders from Accor, hotel owners, investors, tourism industry leaders and politicians.
“We are back in business, and this grand lady has been beautifully transformed,” General Manager, Sam Panetta, told those gathered.
“Every detail has been crafted to deliver an unforgettable experience,” he said, giving a special mention to the four food and beverage venues delivered by Housemade Hospitality.
“The new restaurants and bars are more than just amenities. They are experiences shaped by creativity and innovation. The spaces look amazing. The food is outstanding, and we are very proud that we have created over 200 new jobs.”
Read about the $70 million Sofitel Sydney Wentworth refurbishment
Futuro Capital Principal Ben Hopkins took to the stage to thank investors and partners, KKR, Marprop Investments for making it possible.
“We set out to create great things, and this is one of many we couldn’t have done without this huge support,” he said.
“This place has always created great memories for everyone, election wins, weddings, school formals, milestone business deals and lifelong partnerships with these walls. Now, it’s your turn to create new memories.”
KKR Managing Director, Colin Zhou, reflected on the company’s journey with the Sydney hotel.
KKR started the Asia real estate business over 10 years ago, and this was also our first hotel investment in the region,” he said.
“At the time, we thought buying a 438-key CBD hotel right in the middle of a pandemic and a Sydney-wide lockdown was a good idea. What could possibly go wrong? We learned a few answers to that question.
Among the VIPs in attendance for the launch event was Paul Hopper and his wife Debbie. As a young boy in 1966, Paul and his parents were among the first guests to enter the hotel when it opened.
“The dress my wife is wearing tonight, my mother bought here at the hotel,” he told those gathered.
Chief Operating Officer of Sofitel, Emblems and MGallery, Markus Keller, also has a close connection to the property having served as Front Office Manager at the Wentworth hotel 20 years ago.