Genius Of Collaboration

The highly productive collaboration between InterGlobe Hotels and AccorHotels saw 16 ibis hotels come up in India within 13 years

By Vinita Bhatia

When a joint venture was established between InterGlobe Hotels (IGH) and AccorHotels in 2004 to develop ibis hotels across the country, the announcement did not create a lot of ripples in the country. Over the years, though IGH has been steadily working on putting ibis all over the Indian map.
Currently, it has 16 operational hotels located in Gurgaon, Delhi Airport, Mumbai Airport, Navi Mumbai, Nashik, Pune, Bengaluru, Jaipur, Hyderabad, Goa, Kochi, Chennai and Coimbatore, and plans to launch ibis Kolkata this year. This will mark the brand’s foray in East India. What more, IGH has a committed a pipeline of 23 hotels or 4,000 keys by 2022.
“Our current aggregate is 2,875 rooms spread across 16 hotels in different parts of India. By 2020, IGH will have approximately 20 hotels totalling 3,700 rooms,” said JB Singh, president and CEO, InterGlobe Hotels.

IGH’s primary growth strategy will be to continue focussing on tier-1 locations across the country. While it has hotels across most top cities in India, its endeavour is to have a presence in all micro-markets across these cities as well.
“We are simultaneously looking at high-growth tier-2 cities as well especially keeping our Ibis Styles product in mind, as the product profile enables building slightly larger meeting spaces than a standard ibis hotel. ARRs in tier-2 cities tend to be softer and larger meeting spaces will enable us to benefit from additional revenue through meetings, events and banqueting,” Singh explained.
IGH is open to acquiring new sites via greenfield sites or existing hotels or under construction projects. Greenfield projects allow the company to have direct control over the investment enterprise, which includes control over product quality and time-to-build. These investments enable it to be consistent with the quality it delivers. It also helps it stay cost effective as it can use innovation in developing these properties.
Existing hotels or under-construction sites require careful consideration especially from an ibis product standpoint. “Our requirements are very unique and the project must meet certain fixed criteria from a design standpoint for us to move ahead. We can tend to be a little flexible while considering the project for an ibis Styles development; however, the nature of the product, its location and demand supply dynamics have to compelling enough for us to move ahead with this option,” Singh stated.
This is not the only success story for IGH so far. With 16 operational hotels in its portfolio, it has built robust partnerships with its vendors and suppliers enabling it to leverage costs for timely completion of projects.
Also, since its JV was formed to build and grow the ibis brand in India, these hotels are near similar in each location from a product standpoint. “Retro-fitting a hotel with a new concept or upgrading certain features is quite seamless as the changes across all hotels in the portfolio will be the same,” Singh. Once the company has tested a new concept at one location, it’s a simple almost copy-paste at other locations. So far, so good!

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