China hotel operator Huazhu ties up with Accor

SHANGHAI -- Chinese hotel operator Huazhu Hotels Group Ltd. announced on Monday it had sealed a strategic alliance with French hotel brand Accor.

The alliance will help accelerate both companies' expansion in one of the fastest growing domestic travel markets and the world's largest outbound travel market, it said.

Accor currently has 144 hotels in China. Huazhu operates more than 1,900 hotels in China, covering the full market from upscale and mid-scale to economy.

According to their agreement, Accor will continue to run all its luxury and other upscale brands in China, including Sofitel and Pullman.

Huazhu will hold a 10 percent stake in Accor's luxury and upscale business in China and will help support its future development in the country by cashing in on its relationships with key Chinese real estate investors.

Accor will take a 10 percent stake in Huazhu and will have a seat at Huazhu's board of directors.

The alliance will offer 47 million of their active customers access to a network of over 5,600 hotels globally, said Ji Qi, founder and chairman of Huazhu.