French hotel operator Accor and China-based Huazhu Hotels Group have formed a long-term alliance to create a diversified hotel company in China with more than 2,000 properties.

According to Accor, the plan for the new alliance is to accelerate both groups’ expansion, with its aim to bring together the strenths of both organisations.

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The alliance will see the combination of Accor’s internationally recognised brands and global distribution network with extensive coverage and development capability of Huazhu Hotels Group in China.

Under the deal, Accor’s economy and midscale platform in China will become part of Huazhu, which in turn will become Accor’s master-franchisee operating and developing in Mainland China, Mongolia and Taiwan for the economy and midscale segments, as well as the upscale Grand Mercure brand.

"By combining forces, we can facilitate growth and attract more customers to the expanded network."

Accor will acquire a 10% stake in Huazhu, enabling customers to access a network of more than 5,600 hotels globally.

Accor chairman and CEO Sebastien Bazin said: "This ground-breaking collaboration will leverage the strengths of Accor’s global brands with a leading player in Chinese hospitality.

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"Joining Huazhu’s unparalleled local expertise with our brands will create a hospitality powerhouse, which will deliver unprecedented value to both groups and to our customers."

Huazhu will become a minority shareholder, owning 10% in Accor’s luxury and upscale business in China and will help support future development in the country.

Commenting on this, Huazhu founder, chairman and CEO Ji Qi said: "By combining forces, we can facilitate growth and attract more customers to the expanded network."

The groups have more than 500 hotels in the pipeline together in the region and the alliance is expected to further accelerate development to new levels.

Accor will continue to own and develop all its luxury and other upscale brands in China, including Sofitel, Pullman, MGallery and The Sebel.