InterGlobe Hotels to add 9 more hotels under 'ibis' brand

This is part of company's Rs 2,000 crore investment programme in India

InterGlobe Hotels is planing to add nine more hotels under ibis brand by 2017. This was part of company's Rs 2,000 crore investment plan. InterGlobe is a joint venture between InterGlobe Enterprises and Accor Asia Pacific, to develop a network of 'ibis' hotels in India. InterGlobe's aviation arm is Indigo.

Speaking to reporters after inaugurating 12th ibis hotels in India at Chennai with 155 rooms, J B Singh, president and ceo of InterGlobe Hotels said that with a total portfolio of 19 ibis hotels (including operational and under construction properties), AccorHotels and InterGlobe have committed around Rs 2,000 crore and the investment plan are going on as per schedule.

 

Jean-Michel Casse, senior vice-president, AccorHotels India said: "The opening of the ibis Chennai City Centre is a strategic milestone for the ibis brand in India. We are seeing a strong growth of the ibis network with 12 hotels in India."

The company has invested around Rs 110 crore in the new property which was inagurated today at Chennai.

"Our target is to have 19 hotels with around 3,500 rooms by 2017 and we are very much on schedule," said Singh. He said as part of the growth the company also open for inorganic growth.

He claims while average occupancy ratio is around 70 per cent, major properties are running at around 90 per cent occupancy ratio. He claims this higher by around 10-15 per cent industry's average. Singh noted around 50 per cent are repeat customers.

InterGlobe Hotels is betting big on the Indian mid hospitality market considering the middle class is expected to grow to around 200 million by 2025 and GDP is also expected to growth by around seven per cent.

"Today not much products are available to cater to the growing demand," said Singh, adding that the company would continue to focus only on the mid-market segment and for now it will focus only on the Indian market.