Hotel giant Accor stoops to hostel market

French hotel giant Accor, known for its brands Mercure, Novotel and Ibis, is planning a cut-price debut with hostels in Auckland, Rotorua and Wellington.

The hostels, to be set up over the next 12 months, are the first step in a global move by the French group to tap into the backpacker market.

Michael Issenberg, Accor's managing director for Australia and New Zealand, said the budget travel sector had shown surprising resilience after last year's terrorist attacks.

"Latest surveys showed that despite September 11 and airline collapses, backpacker demand grew 11 per cent in New Zealand for the year until March, and now represents 3.4 million room nights a year," he said.

"All the evidence suggests that more and more travellers - irrespective of their financial status and even age - are choosing to travel this way because of the lifestyle aspects of the experience."

Accor says its hostels will provide "contemporary backpacker-style accommodation but with more consistent and reliable operations".

The Accor hostels will provide 24 hours a day, seven days a week service, will be in prime locations, offer good-value prices, and provide high levels of safety and cleanliness.

The first backpacker hostel will be developed in a heritage building in Fort St in central Auckland.

The 435-bed hostel will include 40 en suite bedrooms and 355 beds in share-rooms of mainly four to six beds.

It will have a bar and cafe, regular entertainment and activities, cooking facilities, a travel centre with internet and job search links and help with visa applications, banking and CVs.

The Auckland hostel is set to open in October, in time for the Louis Vuitton series and America's Cup.

The second hostel will be developed in the King George building on Cambridge Terrace in Wellington, and a third location is being finalised in Rotorua.

Other key destinations in New Zealand include Christchurch and Queenstown.

The company plans to extend into Australia after setting up the New Zealand hostels.

Issenberg said: "New Zealand and Australia have been chosen as the global test ground for the concept because they have the most sophisticated backpacker market in the world."

- NZPA