Ibis to invest over 500 crore rupees to add four properties by FY24, Real Estate News, ET RealEstate

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MUMBAI: The international lifestyle-focused mid-range hotel chain Ibis, part of the large French hotel group Accor and a joint venture with Interglobe Hotels, will invest more than 500 crore rupees to add four more properties offering 685 keys from here FY’24.

Ibis, which last week opened its 20th property in the country at Vikroli in Mumbai offering 249 keys, making it the largest, operates 3,808 rooms in 20 properties in 13 cities – including three in the country’s only mega-city – . The joint venture has invested over Rs 2,700 crore since it began operations in 2008 with Gurugram’s first property.

The 15-story Ibis Vikhroli symbolizes Aamchi Mumbai culture and cost the property developer Rs 230 crore. Interglobe Hotels is the hotel arm of the holding company of the country’s largest airline, Indigo.

The other Ibis hotels in Mumbai are located at the airport (148 keys opened in 2011), and at Navi Mumbai (196 rooms launched in 2016). Of the 20 Ibis hotels, 19 are budget Ibis, and the other is premium Ibis Styles in Calangute, Goa offering 197 keys.

JB Singh, President and CEO of Interglobe Hotels, told PTI that they have so far invested more than 2,700 crore rupees in the 20 Ibis hotels since 2008, and that they will inject more than 500 More rupee crores by FY24 at the next four properties, which will add 685 more rooms, bringing the overall inventory to nearly 4,500.

The new hotels will be operational between 2022 and 2023 and will come to Hebbal in Bangalore offering 153 rooms by the third quarter of 2022; in Thane near Mumbai offering 184 rooms by May 2022; in Kalina in central Mumbai with 206 keys by the first quarter of 2024 and making the fourth Ibis in the mega-job; and the second Ibis Styles in Vagator in Goa offering 142 touches by the end of 2033, Singh said.

Singh said the 20 operational Ibis hotels are located in New Delhi, Gurgaon, Mumbai, Kolkata, Pune, Hyderabad, Chennai, Kochi, Coimbatore, Jaipur, Nashik, Bengaluru and Goa, offering an inventory of 3,808 keys.

According to Puneet Dhawan, senior vice president of operations at Accor India and South Asia, the Vikroli hotel is the largest Ibis in the country to date offering 249 keys and its “openness clearly shows that we are here for the long term and that we are committed to this market. We are staying the course on our pre-Covid commitments “.

Dhawan appeared very bullish on the market, saying the market has looked very bright for the past two months and the occupancy rate has reached 60% now.

Of the 55 Accor properties under 10 brands, 21 are mid-range Novotel hotels and 20 are budget Ibis hotels, Dhawan said.

Dhawan said the Accor group, which offers more than 10,000 keys in 55 properties in 25 cities, employs around 7,000 nationwide. The group has 17 properties in the pipeline offering between 1,200 and 1,500 additional keys over the next two years.

Dhawan and Singh, who appeared cautiously optimistic that the market has returned to more than 55 to 60 percent of normalcy, said prices have yet to recover. But they added that prices are normally lower than volume and pointed out that it took 6-7 years for the industry to recover from the global financial crisis that hit the world in 2008.

Rates are better in some areas like Goa where 2019 rates are better. But subways are lagging behind, where they are still 25 to 30% behind pre-pandemic levels, they said.

Dhawan said the next two quarters are critical to normalization which depends on the pace of vaccination and there is no third wave after the holiday season and his optimism is based on the very congested airports which indicate the market dynamism.

Launched in 1974, Ibis operates more than 150,000 economy rooms worldwide in 1,250 hotels in 65 countries, while Accor manages more than 5,000 establishments in 110 countries.

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