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Accor Hotels, a world leader in travel, tourism and corporate services, opened its fourth Grand Mercure hotel in China on Wednesday.

The company expects to expand its number of properties in China from 38 at present to 60 over the next two year, adding luxury and economy hotels.

The 481-room Grand Mercure Oriental Ginza located in Shenzhen is part of Accor's major expansion drive in the Pearl River Delta, said Brian Deeson, senior vice president for the Asia Pacific and CEO for China.

The French-based group operated seven hotels in the Pearl River Delta, including Hong Kong, Shenzhen and Dongguan in Guangdong Province, at the beginning of this year. The company said it expects to almost double its current number of hotels in China by the end of 2008.

Grand Mercure, which is one of Accor's premium hotel brands, was first introduced to China in 2005. The company currently operates Grand Mercure hotels in Shanghai, Xi'an, Shijiazhuang, and Shenzhen, and plans to set up another in Sanya, Hainan Province in 2008.

The company also expects to open 13 Sofitel hotels, another premium brand, around 2008.

While it lags behind several domestic competitors in the economy sector, the firm sees great opportunities in the sector, and "catching up will only be a matter of time," said Angel Liu, a marketing official.

"Our expansion plan will involve both the premium and economy sectors," said Liu.

(For more biz stories, please visit Industry Updates)