As well, the city’s director for economic development and tourism, Tracey Squire, said Pacific Accor’s move would help promote Albury across Australia and internationally.

Wayne Farrah, whose family operates the Albury Manor House in Young Street, said the French-owned Accor group was “a very smart crew” that would help Albury’s economy.

“Everyone will have to lift their game and the new motel may put pressure on some of the smaller, older operators,” Mr Farrah said.

With the industry already bracing for increased power and other costs, operators would have to reassess rates when the Accor hotel opened late next year.

Quest Apartments franchise owner Noel Wood agreed Accor’s move would have an impact on his and other businesses.

“It will be a good wake-up call and people will have to look at refurbishments and other changes,” he said.

But Mr Wood said Accor would bring fresh dollars to Albury and he noted that Quest and other operators had benefited well from the construction teams on the taxation office and Volt Lane car park.

Quest would continue to work with other operators and the clubs to help attract more events that brought people to Albury.

Ms Squire said Accor was expected to strengthen the city’s tourism market appeal.

“In many cases people in these markets prefer to stay in the central business district, where they can walk to and from entertainment, dining and major conference venues,” she said.

“Many also require four-star-plus accommodation that Accor will provide.”

Ms Squire said the Accor group’s marketing would provide opportunities to leverage existing tourism marketing and promotional efforts.