INDIA A joint venture between Accor and InterGlobe Enterprises will invest in and develop at least 25 Ibis-branded economy hotels across India and elsewhere in South Asia over the next 10 to 12 years, the two companies announce.
InterGlobe Hotels, a 60-40 joint venture between InterGlobe Enterprises and Accor Asia Pacific, expects to spend about US$200 million developing the hotels. The joint venture will attempt to position Ibis as the preferred “best value international hotels” across the region.
Asia Pacific Hospitality Venture Pte. Ltd., which is 25% owned by U.S. REIT Host Hotels & Resorts Inc., will develop seven properties totaling approximately 1,750 rooms for a total cost of approximately US$325 million in Bangalore, Chennai and New Delhi, according to Host. Asia Pacific Hospitality Venture will invest approximately US$50 million to acquire 36% of the interest in InterGlobe Hotels, according to Host.
The establishment of an India-wide internationally-branded economy hotel network will fill a major void in the India hospitality sector, the companies say.
“We could not have chosen a better partner for the sub-continent than InterGlobe, with its diversified interests in travel management, distribution and technology and with its established track record of working with leading international companies in the travel business,” says Michael Issenberg, managing director of Accor Asia Pacific. “We are confident and excited about establishing our dominant presence in the world’s fastest growing travel market. We look to introduce our other major brands— Sofitel, Novotel and Mercure—when the appropriate projects become available.”
Development of Ibis hotels is already under way in Bangalore and Gurgaon. Sites have also been identified in Pune and Jaipur. Together these hotels will have more than 700 guestrooms. Target cities for future development include Mumbai, Chennai and Hyderabad. The first hotel is expected to open in the second quarter of 2011.
Accor is pursuing management opportunities in the sub-continent and is actively negotiating the management of two purpose-built 300-key Novotel hotels at Gurgaon and Hyderabad, respectively. Accor is also in discussions to manage Novotel hotels at Chennai, Mumbai and Pune.