Paris-based Accor reached an agreement with Huazhu Hotels Group (also known as China Lodging Group), in which Accor will franchise Accor’s economy brands across China.

Accor granted Huazhu franchising rights in China for the Novotel, Ibis and Mercure brands. Huazhu, which has more than 1,900 China hotels under brands such as Joya, Manxin, Starway and Hi Inn, has the right to franchise as many as 400 new hotels under the Accor brands.

Also, Accor is taking a 10% stake in Huazhu, which has been listed on the Nasdaq (under China Lodging Group) since 2010.

Accor has 144 China hotels across its Sofitel, Pullman, Novotel and Ibis brands.

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