Accor to Sign Iran Hotel Deal

PARIS—French hotels group Accor SA said Tuesday it would become the first Western group to manage a hotel in Iran since the country signed a nuclear deal with world powers, as it looks to tap into a growing number of business travelers to the country.

AccorHotels will open an ibis hotel and a Novotel branch close to Tehran's international airport in October, the company said, giving the budget-to-luxury lodgings company a foothold in a country of roughly 80 million inhabitants which is one of the world's largest untapped tourist destinations.

The contracts are due to be signed on Tuesday in Tehran by AccorHotels' Chief Executive Sé bastien Bazin and representatives of Iranian company Aria Ziggurat, which owns the buildings.

A spokeswoman for Accor said the French hotel group would be managing the hotels for a local partner without investing any of its money. While tourism isn't under international sanctions, there continue to be restrictions on the banking sector.

Western corporations are jockeying to try to expand or gain entry into Iran following the signing of a nuclear accord between Iran and world powers. The agreement, signed in July, put an end to U.S. and Western European economic sanctions in exchange for curbs to Iran's ability to build a nuclear weapon.

Iran once boasted a vibrant set of luxury hotels under brands such as Hyatt and Sheraton, but these were placed under state control following the Islamic revolution in 1979. While sanctions didn't specifically target the tourist industry, years of political isolation contributed to dwindling tourist numbers and a lack of investment in the sector.

With the new hotels located next to the main terminal of the capital's International airport, Accor said it is hoping to tap into the growing number of business travelers heading to the country as well as tourists.

"We are certain that Novotel and ibis will fit perfectly into the growth momentum that Iran's hospitality sector is enjoying," Mr. Bazin said.

French Foreign Minister Laurent Fabius in July was one of the first Western officials to visit the country following the signing of the accords and French corporations have historically been some of the most active companies in the country.

Two of France's two largest car makers—Renault and PSA Peugeot Citroë n—have been among the most aggressive western companies in attempting to re-enter and expand in Iran following July's agreement.

A number of western officials have said they didn't expect a wide range of economic and financial sanctions to be lifted until 2016. U.S. Energy Secretary Ernest Moniz said on Monday in Vienna it remains unclear how long it will take Tehran to complete its tasks.

The hotels were built by local company Aria Ziggurat, following the specifications of Accor. Both are due to open in mid-October with a total of almost 500 rooms.

Write to Nick Kostov at [e-mail]

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September 15, 2015 08:55 ET (12:55 GMT)

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