InterGlobe Hotels charts growth path on back of surging demand: JB Singh

InterGlobe Hotels bets on India's travel boom, flags hotel room shortage, plans expansion to 300 properties amid rising domestic demand

InterGlobe Hotels, the joint venture between IndiGo owner InterGlobe and Accor Asia Pacific, expects to grow on the back of domestic demand in a capacity-starved Indian hospitality market. 

“India has inherent demand today. The gross domestic product (GDP) is growing at over 6 per cent and continues to rise, powering travel – both domestic and outbound,” JB Singh, president and chief executive officer (CEO), InterGlobe Hotels, told Business Standard on the sidelines of the Iconic Travel and Tourism Summit held earlier this week.

 

“While this happens, we have an undersupply of classified hotels. We have just crossed the 200,000-room mark, which is really low compared to cities like Las Vegas in the US. Whether we look at the long term, medium term, or short term, there is a massive need for capacity,” Singh added. 

According to hospitality consultancy companies Hotelivate and Horwath, the branded hotel room count in the country was at a mere 200,000 in 2024 and is expected to grow to 300,000 by 2030. 

Meanwhile, the branded midscale hotel supply in India has clocked a compound annual growth rate (CAGR) of nearly 9 per cent, increasing from over 9,000 rooms in FY01 to nearly 65,000 rooms in FY24, according to hospitality consultancy firm HVS ANAROCK.

 

“India has huge depth and a growing population. There is a massive amount of business for all three segments – luxury, mid-market, and budget. We are focused on right-sizing products for each market and our association with Accor allows us to cater to all,” Singh said. 

Speaking about a possible initial public offering (IPO), Singh said that a timeline had not been decided but there was an opportunity to bring capital into the company. 

“We have been at this for 20 years now. I’m not saying we have an IPO being planned but it’s a good time for us to get more capital into the company and get more public participation. It is the right time to look at some structural opportunities,” he stated.

According to reports, the joint venture plans to open 300 properties by 2030 under Accor brands. Accor is also evaluating potential plans to debut on the Indian bourses, Ranju Alex, CEO of South Asia for Accor, had told The Economic Times in February. 

The company, which launched its own hospitality brand Miiro in the European market two years ago, is also open to bringing the brand into India. 

“We don’t have a definite plan but our brand overseas has been performing very well. At some point, I think we should,” he said.