Global Hotel Giants Unlock New Opportunity in Old Rooms

Australia’s next regional hotel cycle may not begin with a cleared site. Instead, it may start in a tired lobby, behind a motel sign, beside a highway, above a club or inside a 3-star room earning but not working as hard as it could. For Accor—the French hotel group behind the Sofitel, Pullman, Peppers, Mantra, Mercure and ibis brands—existing rooms are becoming another path to growth. The company holds more than 5800 hotels globally, including more than 420 across the Pacific. The first Pacific property under the greet brand has now opened at 20 Gregory Terrace in Alice Springs [ pictured at top ]. Its significance isn’t the brand debut in the region, and indeed Accor already has more than 150 franchise hotels across Australia and New Zealand. ▲ A room at greet Hotel Alice Springs, Accor’s first Pacific property under its conversion-led economy brand. Rather, greet adds a new conversion-led economy brand to the network, aimed at older hotels where owners want a lighter refit, local character and access to Accor’s systems. A brand for conversion Accor Pacific chief operating officer Adrian Williams says greet is “not built on standardisation” and “embraces the personality of its eclectic network”. Accor says greet has grown to more than 45 hotels across five countries in Europe since its launch in September, 2019, proving the conversion platform before its Pacific launch. Williams says the model is “franchise-ready”, “simple to operate, fast to convert, and built to scale without complexity”. The standards are narrow. Accor says owners need “good Wi-Fi, good bed and shower, and good breakfast”. There is no minimum room size and no mandatory design toolkit. “The brand is particularly well suited to existing hotels seeking repositioning through a cost-conscious refurbishment,” Williams says. ▲ Accor Pacific chief operating officer Adrian Williams says greet is built for fast, lower-capex hotel conversions rather than heavy brand-standard refits. Furniture, fixtures and decorative items can be retained and repurposed where appropriate, while locally sourced, recycled and upcycled materials are encouraged. The approach gives owners a lower-capex path to renewal than a full strip-out. Owners keep more of the property’s identity while plugging into Accor’s booking, distribution and commercial systems, and its ALL Accor loyalty program. Alice Springs opens the account The Alice Springs hotel underlines the type of asset Accor is chasing. The 3-star property is near Todd Mall and Red Centre tourism drawcards, and offers parking, 24-hour reception, outdoor pool, cafe, tavern, laundry and outdoor spaces. It’s not a luxury repositioning and it doesn’t need to be. ▲ A mural at the Alice Springs hotel, where Accor’s conversion model leans on local character rather than heavy brand-standard design. The asset type is the point, older regional accommodation with enough operating substance and upside to justify a brand conversion. At a media lunch during Accor’s Pacific Franchise Conference in Sydney, Williams describes 2026 as a “watershed year” for the business. “As we sit here today, we have as many hotels under franchise as we do under our managed model,” Williams says. Under the franchise model, Accor gets a faster route into rooms already trading, while owners gain access to its systems and keep closer control of operations. Accor global chief franchise officer for the premium, midscale and economy division Leire Leoz says the company is not forcing the shift. “We’re following what the markets want,” Leoz says. Why Australia, why now Tourism Research Australia says Australians spent $29.7 billion on domestic overnight trips in the March quarter of 2026, including $8.5 billion on accommodation. ▲ Accor says essential standards include good Wi-Fi, bed, shower and breakfast. Its business data counted 361,270 tourism-related businesses in June 2025, with 30 per cent in regional Australia and 95 per cent classified as small businesses. Accor vice-president of franchise in the Pacific region Danesh Bamji says demand for conversion-friendly brands and flexible franchise models is accelerating. “We are seeing particularly strong interest in conversion opportunities from independent and regional hotel operators looking to enhance competitiveness while maintaining their local identity,” Bamji says. Guests now make decisions before reaching the front desk, with search visibility, loyalty rewards, reviews, brand trust and booking certainty shaping where demand lands. For global hotel groups, fragmentation has become the opening. A global conversion race Accor isn’t alone in chasing existing rooms. InterContinental Hotels Group says Garner—its midscale conversion brand launched in August, 2023—reached 100 open hotels globally in March, becoming its fastest brand to scale globally. ▲ Poolside at greet Hotel Alice Springs, part of the existing amenity base Accor says can support a lighter conversion model. Hilton launched Spark as a premium-economy conversion brand in 2023, with its first hotel opening eight months later and more than 400 opportunities in development. Conversion brands give hotel groups another route to growth beyond new-build supply. Existing rooms can often enter a brand system more quickly than new-build stock, then connect to loyalty, revenue and booking platforms. For regional Australia, older accommodation stock is beginning to look more strategic. Growth isn’t only in new rooms, but in rooms already earning and not yet optimised. The owner trade-off The appeal is control as much as cost for owners. Accor pitches greet as a low-capex conversion brand, with “only essential brand standards”, no mandatory design toolkit and refurbishment investment kept in the owner’s control. Rather than forcing a full rebuild, the model gives older hotels a way to spend selectively, keep local character and move into Accor’s booking, distribution, commercial and loyalty systems. A conversion still needs enough work to carry the flag, from rooms and signage to systems, technology and service standards. Under the new Franchising Code, which took effect on April 1, 2025, franchisors must be clearer about significant capital expenditure a franchisee may need to incur. The Australian Competition and Consumer Commission says major refurbishments and fit-outs, rebranding, equipment, software and technology upgrades are likely examples. This is less a brake on the model than part of the decision. ▲ The greet name now sits above reception at Alice Springs, Accor’s first Pacific conversion for the economy brand. The question is whether spend and franchise commitment can unlock more demand, stronger pricing and better asset performance than independence alone. A full redevelopment may not stack up. A heavier brand-standard refurbishment may go too far. Remaining independent may leave value on the table. In Australia, travellers want confidence, owners want reach, and regional assets need to earn harder without becoming generic. A recognised flag may help make a hotel easier to find, price, book and trust, but the asset still needs to work. For older regional rooms, the next growth option may not be a new front door, it may be a different system behind it.

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Vanessa Croll
Fri 10 Jul 26

Global Hotel Giants Unlock New Opportunity in Old Rooms

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