You are here: Home » Companies » News
Business Standard

Ibis to add over 500 more keys by 2022, sees normal revenues next year

The lifestyle focused mid-segment hotel chain Ibis, a part of the French hospitality major Accor Group, will add over 500 keys across four properties, taking total inventory to over 4,000 by 2022.

IBIS Hotels

Press Trust of India  |  Mumbai 

AccorHotels eyes 55% increase in room-keys with more global luxury brands

The lifestyle focused mid-segment hotel chain Ibis, a part of the French hospitality major Accor Group, will add over 500 keys across four properties, taking total inventory to over 4,000 by 2022.

While Ibis, since its entry in 2008, operates 3,500 rooms across 19 properties (Ibis & Ibis Styles hotels) spanning 13 cities, its parent Accor operates over 9,500 rooms spread across 51 properties under 10 brands across 21 cities in joint venture with Interglobe Hotels, an arm of holding company of budget carrier Indigo since the past 14 years.

The expansion is focused on three cities -- Mumbai, Bengaluru and Goa--which are already functioning almost at pre-pandemic levels, though the revenue normalisation may take a quarter or two, Sylvain Laroche, director of operations, at Ibis India told PTI.

"While we're already profitable operationally thanks to lower staff cost and other cost cutting, I don't see revenue reaching 2019 levels in 2021, though this year should be much better than the pandemic-hit 2020. I see revenue scaling back to 2019 levels only in 2022," said Laroche, who has been heading domestic operations since June 2019.

While Ibis operates 18 smart economy properties, its other brand Ibis Styles runs life-style focused mid-segment hotel in Goa.

Come July 2021, Ibis will open a 180-key property at Vikhroli in Mumbai; a 150-keys Ibis Styles in Goa by the end of the year and a 180-rooms Ibis at Hebbal near Bengaluru by early 2022, and adding 510 rooms to the existing 3,500 keys, he said.

On the room occupancy, he said currently it's over 50 per cent, up from 45 per cent in Q3 and expects this to further improve to 60-70 per cent by March. However, Pune and Goa and to a large extent Mumbai are running full and so is pricing there.

"But pricing is still down 30-35 per cent and I see this normalising over the next one or two quarters," Laroche noted, adding the management focus is solely on room rates now and "as soon we cross 60 per cent occupancy, we will hike pricing to pre-pandemic levels".

He said almost 30 per cent of the staff who went home during the pandemic have not returned yet, helping it cut operational cost.

Began in 1974, Ibis globally operates over 1,50,000 economy rooms across 1,200 hotels in 65 countries, while Accor runs over 5,000 properties across 110 countries.

The Gurugram-based InterGlobe Hotels is a joint venture betweenInterGlobe Enterprises that owns Indigo Airlines and the French hospitality giant Accor and owns 60 per cent in the JV. Over the past 14 years, the JV has invested around Rs 2,000 crore and was planning to invest Rs 1,000 crore more before the pandemic.

Other Accor brands operational here include Fairmont, Sofitel, Pullman and Grand Mercure among others.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, January 31 2021. 14:16 IST