Ibis Hotels targets mid-market growth in India's cities

Ibis Hotels is focusing on mid-market positioning in India, according to InterGlobe Hotels' CEO. The brand, a partnership between InterGlobe and French company Accor, aims to grow by targeting major cities. With 29 Ibis hotels in India currently, the company is expanding into city centers to meet demand for quality accommodations. JB Singh, the CEO, emphasized that India's hotel market is underdeveloped and has significant room for expansion. He noted that travel and tourism are expected to grow rapidly, leading to an annual growth rate of 8-14% over the next several years. Singh clarified that, despite Accor labeling Ibis as a budget hotel, they view themselves as a mid-market chain. He highlighted the quality of their projects as a reason for this classification. Ibis competes with brands like Ginger and Bloom Hotels in the Indian market. The company recently opened a new property in Mumbai’s BKC business center, featuring 206 rooms with a construction cost of around 40 lakh per room. Globally, Ibis operates about 1,200 hotels, with expansion plans in India focused on tier I cities for now. Singh mentioned that about 50-60% of their hotel guests are repeat customers, thanks to their efficient service and prime locations. The company is exploring new real estate opportunities in Mumbai, Hyderabad, Delhi NCR, and Pune while taking a cautious approach to entering tier II cities. Future hotel projects are expected to have between 160 and 220 rooms to maximize efficiency and demand.