At the 2026 TravelDaily Conference, Accor Greater China CEO Kent Zhu joined TravelDaily CEO Charlie Li for a session titled “Beyond Scale, Beyond Luxury: International Hotel Groups’ Next Chapter in China.” The conversation zeroed in on a question that is becoming central to the strategy of every global hotel operator in the country: who truly understands the Chinese consumer?
Zhu, who took the helm of Accor’s Greater China business in May 2025, acknowledged that the competitive landscape has shifted dramatically. “International and domestic groups each have their own strengths,” he said. “But for luxury and upscale brands, the real priority is understanding how consumer expectations are changing.”
Accor has operated in China for more than four decades, yet Zhu admitted that the group needs to refine its approach in an increasingly crowded market. He outlined two immediate priorities: restructuring commercial operations to give hotel owners stronger support, and stepping up brand marketing to raise Accor’s profile. “We have traditionally been low-key in marketing,” Zhu noted. “As competition intensifies, we need to communicate our brand value more proactively.”
Blurring lines between international and domestic players
The historical divide in China’s hotel industry is fading. International groups once dominated the upscale and luxury segments, while domestic chains built their edge through local market knowledge, distribution networks, and rapid expansion into lower-tier cities. Today, international brands are moving downmarket, and domestic groups are pushing up into the upper midscale tier. Their products, customer bases, and geographic footprints increasingly overlap.
Zhu pointed out that leading domestic hotel management companies have developed strong market insights, extensive distribution reach, and sophisticated technology capabilities. “International groups still need to deepen their understanding of certain China-specific consumer needs and operating conditions,” he said, “despite their global scale and resources.”
This is not just a theoretical concern. Accor’s portfolio in China spans from luxury brands like Raffles and Fairmont to midscale names such as Novotel and ibis. Each segment demands a different approach to localization. “We cannot apply a one-size-fits-all strategy,” Zhu explained. “The luxury traveler in Shanghai has different expectations than the business traveler in Chengdu.”
Technology is another battleground. Chinese consumers are among the most digitally savvy in the world, and domestic hotel groups have invested heavily in mobile apps, AI-driven personalization, and seamless payment integration. International groups, Zhu conceded, have been slower to adapt. “We are investing in technology to improve the guest experience, but we also need to learn from our domestic counterparts,” he said.
The discussion also touched on the broader travel ecosystem. As China’s outbound and inbound travel rebound, hoteliers are watching trends in business travel spending and MICE demand. Zhu noted that Accor is positioning itself to capture growth in both segments, particularly in second- and third-tier cities where infrastructure is expanding rapidly.
For international groups, the path forward is not about abandoning global standards but about blending them with local nuance. “Localization without losing identity is the key,” Zhu said, echoing a sentiment that has become a mantra across the industry. Global hotel brands in China are increasingly walking this tightrope, and Accor’s next chapter will be defined by how well it executes.
Zhu’s remarks come at a time when competition is intensifying not only among hotel groups but also from alternative accommodations and new travel-tech platforms. The new growth playbook emerging from TravelDaily 2026 suggests that scale alone is no longer enough. Understanding the consumer — their preferences, habits, and aspirations — is the new competitive advantage.
As the session concluded, Zhu left the audience with a clear message: “The next chapter in China will be written by those who listen closest to the consumer.” For Accor, that means doubling down on local insights while leveraging its global brand power. Whether that formula will be enough to outpace domestic rivals remains to be seen, but the direction is set.
