Accor bets big on luxury as demand soars across the Pacific

The unwavering demand for luxury travel is fuelling growth in Accor’s collection brands portfolio and driving a wave of hotel renovations, conversions and new developments across the Pacific.

Speaking at a media roundtable in Sydney, Accor Vice President of Operations for Sofitel, MGallery and Emblems hotels for the Pacific, David Fraser, said the luxury sector continues to outperform expectations, with travellers seeking more personalised and experience-led stays.

“The demand for luxury since Covid has gone through the roof,” Fraser said.

That demand is translating into rejuvenation investment across Accor’s luxury network, with Fraser revealing that approximately one-third of its Sofitel portfolio globally is currently undergoing renovations, while discussions are underway with three other Sofitel owners across the Pacific regarding refurbishment projects.

Earlier this month, Accor announced a second Sofitel for Fiji, the highly anticipated Sofitel Fiji Vatu Talei on Denarau Island, set to open in the first quarter of 2027, as part of a three-hotel mega deal with Fiji’s Yavu Collective.

However, Fraser said the strongest growth is occurring within its MGallery boutique collection brand, with a new MGallery to be announced in the coming weeks, taking the total to 12 in the Pacific region. 

According to figures presented, collection brands are among the highest-growth hotel categories for the group, with the number of rooms in collection hotel brands quadrupling between 2016 and 2024. Accor also cited forecasts showing interest in exclusive boutique hotel experiences is expected to rise by 7% by 2027.

“I think [it’s] going to be the fastest growing collection brand in this part of the world, definitely,” he said.

The brand speaks to independent hotel owners who want to maintain individuality, but plug into the scale, distribution and loyalty power of a global operator. 

“The owners love them. They can put their own mark on their hotel with their own vision … and really give a guest experience that’s really unique. It’s not like a cookie-cutter approach to hotels of the past,” Fraser said.

He added that rising construction costs pressures also make conversions more attractive in the current climate.

“The cost of construction and the cost of capital was going through the roof. It’s harder to get deals to stack up,” he said.

Recent examples include the 2025 conversion of the former Novotel Sydney Brighton Beach into Brighton Hotel Sydney MGallery and the rebranding of Elysium Noosa Resort, with Fraser revealing almost a quarter of the network is undergoing renovations.

“The appeal from travellers of wanting these unique experiences” is one of the major drivers behind the sector’s growth, in addition to wellness offerings, according to Fraser.

“Every development I’m looking at, wellness and spa, that’s where the demand is. It’s certainly the future,” he said.

Accor’s newest ultra-luxury collection brand, Emblems, has yet to arrive in the region, but plans are underway to find and secure a property in the Pacific, with Fraser revealing the group has had discussions with developers in Fiji and in Australia for the brand’s launch.

Emblems’ first property in the UK’s Cotswolds in late 2025 has sparked rapid growth, with the group forecasting 60 properties globally by 2030.

“We have seven new Emblems due to open over the next 12 months, and I see a great opportunity for Emblems down in this part of the world,” Fraser said.