 "ibis")
InterGlobe Hotels (IGH), a joint venture of InterGlobe Enterprises and French hospitality brand Accor, plans to expand their presence in key metro cities through greenfield projects, a senior company official said on Thursday.
JB Singh, president and chief executive officer (CEO), IGH, and Tejus Jose, director of operations, ibis Hotels, in an interaction with Business Standard, said that their priority is to consolidate its presence in large cities to cater to the vast base of micro markets in a single city.
On Thursday, it added a fifth hotel at the Bandra Kurla Complex (BKC), with 206 rooms, making Mumbai a major market in terms of revenue contribution.
The other cities where the company is looking to expand include Delhi-NCR, Hyderabad, Bangalore, Pune, and Goa.
Singh added that Maharashtra is an important market. He elaborated that they are in the process of rejuvenating the pipeline in the next few months.
Jose said that after one to three years, ibis BKC Mumbai has the potential to contribute about 25 per cent of revenue from Mumbai. He explained that the expansion plan is capital-intensive, as few brownfield projects in India match the global standards of the ibis brand.
IGH currently has a portfolio of 23 hotels in India. In 2024, its top line grew by 14 per cent, and Singh expects similar growth this year.
The ibis hotel brand typically caters to the business travel segment, and Jose and Singh said that the peak season for the hotel usually starts from September or October till March (during the winter season).
However, with the revival of the business travel segment, the hotel does not have significant variations in room rates and occupancy between the summer and winter seasons.
"In low-demand markets, we had 70 per cent occupancy, which is not bad, and in high-demand markets, our occupancy rates were between 80 to 90 per cent," Jose added.
He also expects an increase of 5 to 10 per cent in the hotel’s average daily rate (ADR) in 2025, depending on the specific market.
Generally, during the winter season, ibis hotels’ ADR in soft demand markets was in the range of ₹4,000 to 5,000, while in high-demand markets, it went up to ₹9,000.
