Accor Group and a joint venture with Interglobe Hotels to invest over Rs 500 Cr to add 4 more properties by Fy’24

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International lifestyle hotel chain Ibis, part of major French hotel group Accor Group and a joint venture with Interglobe Hotels, will invest more than 500 rupees to add four more hotels with 685 keys in FY24. Ibis, which opened its 20th property in the country at Vikroli in Mumbai and is the largest with 249 keys, operates 3,808 rooms across 20 properties in 13 cities – three of them in metropolitan cities alone – in the country. Since its establishment in 2008, the joint venture has invested more than Rs 2,700 with its first fortune in Gurugram.

The 15-story Ibis Vikhroli epitomizes Mumbai’s Amchi culture and costs 230 businessman krona. Interglobe Hotels is a friendly unit of the largest airline parent company Indigo. Other Ibis hotels in Mumbai are located at the airport (148 locks opened in 2011) and at Navi Mumbai (196 rooms opened in 2016). Of the 20 Ibis hotels, 19 are budget Ibis and the other is the premium Ibis Styles in Calangute, Goa which offers 197 keys.

JB Singh, President, and CEO of Interglobe Hotels told PTI that they have invested over 2,700 rupees in 20 Ibis hotels since 2008 and will invest more than 500 rupees over FY 24 in four future hotels with a total of 685 rooms out of nearly 4,500. The new hotels will operate between 2022 and 2023 and emerge at Hebbal in Bengaluru, offering 153 rooms by the third quarter of 2022; in Thane near Mumbai with 184 rooms by May 2022; in Kalina in central Mumbai with 206 keys in the first quarter of 2024 and thus the fourth Ibis in Megaplois; and the second Ibis Styles at Vagator in Goa, offering 142 keys by the end of 2033, said Singh.

According to Singh, the 20 operating Ibis hotels are located in New Delhi, Gurgaon, Mumbai, Kolkata, Pune, Hyderabad, Chennai, Kochi, Coimbatore, Jaipur, Nashik, Bengaluru and Goa and offer an inventory of 3,808 keys. According to Puneet Dhawan, Senior Vice President of Operations for Accor India & South Asia, Vikroli Hotel is the largest Ibis in the country to date with 249 keys in this market.

Dhawan sounded very optimistic on the market and said the market looked very good over the last two months and employment has now increased to 60%. Of the 55 Accor hotels under 10 brands, 21 are mid-range Novotel hotels and 20 low-cost Ibis hotels, Dhavan said. Dhawan said Accor Group, which sells more than 10,000 keys to 55 properties in 25 cities, leases about 7,000 in the country. The group has 17 properties in production and will offer between 1,200 and 1,500 additional keys over the next two years. Dhavan and Singh, who sound cautiously optimistic that the market is normalizing more than 55-60%, say prices are still not recovering. However, they added that pricing typically lags behind, saying it would take 6 to 7 years for the industry to recover from the global financial crisis that hit the world in 2008.

Fares are better in some areas, like Goa, where they did better in 2019. But subways lag behind where they are still 25-30 percent behind pre-pandemic levels, they said. Dhavan said the next few quarters are key to normalization, which depends on the pace of vaccinations and there is no third wave after the Christmas season. His optimism is based on a very congested airport, which shows the vitality of the market. Ibis was founded in 1974 and operates more than 1,500,000 economy rooms in 1,250 hotels in 65 countries worldwide, while Accor operates more than 5,000 hotels in 110 countries.

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