With Mercure, Accor Breaks the Traditional Codes of Midscale Hotels

. June 27, 2013

June 27, 2013 -Accor, the world's leading international hotel operator, today is unveiling a new vision for the Mercure brand. A midscale hotel leader with more than 700 hotels worldwide, Mercure is re-positioning its focus with four brand strategies including:

Accelerated expansion, mostly through franchises, with a target of 1,000 hotels within the next five years
A global quality of service guarantee
A modernized approach to the guest and team experience
A brand new visual identity

"Mercure is essential for the group's expansion particularly driven through franchises and managed hotels. The brand is opening a new page in its history," comments Yann Caillère, CEO of Accor. "Thanks to the work carried out in partnership with our franchisees and to its powerful distribution, Mercure is increasing its attraction for hoteliers and guests alike by injecting new energy and innovation into midscale hotels."

1. Accelerated Expansion

With a target of 1,000 hotels in the next five years, Mercure is the world's second largest hotel chain in its segment, excluding North America, with 732 hotels in 50 countries. The brand is enjoying sustained expansion with an average of one opening per week and over 15,000 new rooms between 2011 and 2012. Mercure alone accounted for 21% of rooms opened by Accor in 2012.

Network growth (over 75% through franchises and management contracts) is mainly achieved by converting existing hotels and focusing on reinforcing Mercure's leadership position in its key markets including France (232 hotels), Germany (112 hotels) and the United Kingdom (73 hotels); expanding in Brazil (64 hotels) and Australia (63 hotels); and expanding into two new countries every year. In 2012, Mercure established footholds in Russia and South Korea, while this year the brand will launch its first establishments in Turkey and Sweden. Mercure plans to open a total of 53 new hotels in 2013.

"To meet our objective of 1,000 hotels within five years, we will expand mostly through franchises," stated Christophe Alaux, Chief Operating Officer Mercure & MGallery Europe. "Independent hoteliers make up 70% of the midscale hotel segment. They are looking for sector expertise, particularly to handle the hotel digital revolution. Mercure places relations with franchisees at the heart of its brand governance and that makes it a benchmark franchisor."

Mercure's strength also lies in the power of its loyalty and distribution system and in the development of multi-channel digital devices (mobile application, Facebook page and websites in nine languages and 26 local versions). Online booking represents 30% of the brand's turnover.

2. A worldwide quality of service guarantee

Mercure guarantees the same high quality of service with the new Mercure Quality Guarantee, set to be deployed across the entire network by end of 2014. The approach is based on 96 shared quality guidelines and ensures that the guest experience is consistent in all Mercure hotels. Focusing on hotelier service and responsiveness, the program includes a dedicated phone line for the entire network that customers can dial 24/7; further promoting interaction with staff and stimulating responsiveness.

Extensive refurbishment across the network
The Dedicaces renovation concept, launched in 2011 in France, continues to be rolled out at a sustained pace. A large-scale renovation process that is carried out twice as fast, Dedicaces enables bespoke room refurbishment that is 30% less expensive, while also providing customized, high quality modern rooms. Mercure embraced this concept in France, where 70% of its network has been renovated. In the second half of 2013, the concept will be extended in Germany and the United Kingdom.

3. A new approach to the guest and team experience

Mercure and France-based design agency W&Cie have teamed up to introduce a unique lobby design concept that is unprecedented in midscale hotels. The reception desk will be replaced with an approach based on a friendlier, easier interaction. The concept includes: the receptionist acts as a "host" who invites customers to the "host table" or to one of the comfortable lobby spaces that "feels like home," including the bar and the restaurant. Furthermore, the use of digital tablets enables speedy check-in and fosters dialogue between the hotelier and the guest. This concept, which has been successfully implemented at the Mercure London Bridge since April, will be rolled out in five other hotels by the end of 2013.

Reinvented cuisine
Mercure's culinary offerings have been revamped to blend modernity with tradition. Three new F&B concepts have been created to reflect these trends: the Cuisine Lounge allows guests to serve themselves at any time of the day or night in an area designed like an apartment kitchen; the Restaurant Lounge offers traditional and local recipes; and the Bar Lounge serves as a warm and convivial space where guests can interact in a cozy atmosphere. Also the new wine menu, "Cave et Saveurs", showcases local vintages in partnership with France's Bettane & Desseauve wine guide.

EasyWORK by Mercure
Mercure has developed EasyWORK, a solution designed for business travelers on the move, that offers dedicated and modular work spaces complete with a light meal service, equipment and internet access. EasyWORK attracts both guests staying at the hotel as well as visitors, and will be available in Mercure hotels located in close proximity to stations, airports and major regional and national business hubs.

New Human Resources
Mercure is implementing a revitalized Human Resources program with three new programs including: the "Mercure Touch" includes 10 differentiating customer service attitudes that allow hoteliers to interact with guests. This program will be implemented on a participatory basis from January 2014. The "Mercure School of Service" is an innovative, flexible e-learning training course available in nine languages and throughout the 17 global Accor academies. This system enables Mercure to ensure that each employee receives at least one week's training a year. Lastly, the "Mercure Community" is a corporate social network for the 45,000 employees to collaborate and progress professionally.

"Midscale hotels are caught between rapidly modernizing economy hotels on one hand and the upscale hotel experience on the other," explains Frederic Fontaine, Senior Vice President Marketing Mercure and MGallery. "The growing demand for a more authentic, friendly and diverse offer in this segment is an opportunity for Mercure. It has incited us to develop a demanding road map that breaks with the segment's traditional codes and differentiates us long term. Mercure is abandoning the practical, logical, best-value-for-money model and adopting a much more 'emotional' approach that fosters harmony between places and people."

4. A new visual identity

Mercure and design agency W&Cie are streamlining the brand's identity to reflect its new positioning: "in harmony with places and people". The agency has also developed a range of hotel communication tools that will be rolled out from January 2014 across the entire network.

A global advertising campaign

Mercure has launched a new advertising campaign devised by DDB Paris. It focuses on Mercure's originality, showcasing a brand with a network of hotels that are inspired by their surroundings. The campaign features a black and white TV advertisement that focuses on the positive emotions prompted by an unexpected surprise by a stay at Mercure. The communication campaign will also run in the press, on billboards and online.

This campaign, which was launched in France last April, presents the brand in a new light and introduces its new signature slogan: "Rediscover Mercure". Media campaigns representing a total investment of €20 million will kick off soon in over ten countries including France, the United Kingdom, the Netherlands, Germany, Italy and Brazil.

"We are confident that Mercure's in-depth transformation will appeal to guests, who will enjoy a truly different midscale experience; to hoteliers, who will help accelerate our expansion; and also to our teams, who regularly develop new skills," concludes Christophe Alaux, Chief Operating Officer Mercure & MGallery Europe.

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