French company Accor Hotels aims to have 300 hotels in India by 2030

Currently, Accor Hotels has 71 operating hotels in India, with 40 hotels in its pipeline.

French hospitality major Accor Hotels and IndiGo’s parent firm InterGlobe -- partners for over two decades -- are eyeing 300 hotels in India by 2030, a portfolio which will be operated by a joint entity floated by them to tap the country’s fast growing mid-market segment.

 

Currently, Accor Hotels has 71 hotels in India, while 40 are in the pipeline.

 

Both the giants will bring together their currently owned assets, development and management businesses in the country to form an autonomous, integrated platform, which will be one of the country’s largest, top executives said at a press conference.

 

InterGlobe had sold a 2 per cent stake in IndiGo last year to raise funds to expand its hospitality business. The joint entity could go through the initial public offering (IPO) route in the future if the hotel company needs more capital, Sébastien Bazin, chairman and chief executive officer (CEO), Accor Hotels said at Hotel Investment Conference-South Asia in Mumbai.

 

“For this (opening 300 hotels by 2030), we will be going from opening five to seven hotels a year to 25 to 40 hotels a year (in India)," Bazin said in a press conference at Fairmont Mumbai. 

 

Bazin said that the surge in domestic tourism, fast growing middle-class section and the country’s fragmented hospitality market gives them a huge opportunity to expand.

 

He also added that the joint operation with InterGlobe Enterprises will strengthen their already existing partnership and create a “fastest-growing hospitality enterprise in the country”.

 

Accor Hotels operates in China in a similar model.

 

Under the same partnership, they will jointly invest and become the largest shareholder in Treebo, a branded budget hotel platform, which manages 800 hotels. Through this, Treebo will take the lead to develop Ibis and Mercure brands (which come under mid-market segment) in the country.

 

Treebo already has 10 Mercure branded hotels in the pipeline in India.

 

Additionally, with IndiGo (where InterGlobe Enterprises is the largest stakeholder), and Accor Hotels have agreed to develop a collaboration through their loyalty programs, IndiGo BluChip and ALL Accor Live Limitless, they said in a joint statement.

 

This will allow both their members to earn and redeem points across flight, stays and experiences.

 

IndiGo BluChip loyalty program, launched in November 2024, has over 2 million members till now, and Pieter Elbers, CEO, IndiGo said at the press conference that this gives them confidence that the membership base will further increase and further help their collaboration with the Accor Hotels.

 

On the other hand, the Accor Hotels loyalty program has a global membership base of over 100 million members.

 

“In line with IndiGo’s ambition to become a global aviation player, partnering with Accor, a like-minded global hospitality brand, will open new and unparalleled opportunities for IndiGo’s BluChip members. As India’s economy soars and the aspirations of its people evolve, we are also reimagining air travel to offer our customers enhanced benefits,” Elbers added in a statement.

 

Rahul Bhatia, group managing director, InterGlobe Enterprises was quoted saying, “Together with InterGlobe’s deep market insights, Accor’s world-class services, India’s dynamic growth and evolving travel landscape, we aim to redefine the hospitality experience by offering exceptional value to our guests and setting new standards for excellence in the industry.”

 

Accor Hotels in partnership with The Shrem Group will bring Morgans Originals, its luxury hotel brand to India for the first time and also expand its Fairmont Hotels and Resorts brand in the country.

 

The 109-room Morgans Originals hotel brand will be located beside the newly-opened 446-room Fairmont Mumbai, Rajiv Kapoor, general manager, Fairmont Mumbai, told Business Standard in an interaction.

 

Apart from Fairmont Mumbai, Fairmont Udaipur Palace is expected to open this year, followed by Fairmont Agra, Fairmont Shimla Fagu, and Fairmont Goa Shiroda. This brand was first introduced in Jaipur.

 

Fairmont Mumbai, with over ₹1000 crore investment in the property, includes five food and beverage brands and four event spaces, Kapoor added.

 

“Our aim is to become the number one revenue (generating) hotel for Accor Hotels in India in two years. In terms of our portfolio of hotels, primarily because of the size and the volume of the luxury of this hotel, we aim to become the top revenue earners for any hotel in India,” said Kapoor.

 

Nitan Chhatwal, chairman and managing director, Shrem Group, said, “With a partner of Fairmont’s global pedigree and nuanced understanding of luxury, we are confident this hotel will redefine benchmarks across the Indian hospitality landscape.”