InterGlobe Hotels, a joint venture between InterGlobe Enterprises and global hospitality company Accor Hotels, is set to invest an estimated ₹700 crore to open six hotels in India by 2022.
The company currently has 19 hotels with 3,559 rooms across the country under Accor's Ibis brand, and InterGlobe Hotels President/CEO J.B. Singh told Indian news service PTI that the company expects to have 25 properties with 4,000 guestrooms across India by 2022.
The new hotels are slated for Bengaluru, Mumbai, Thane and Goa, adding 980 guestrooms to the JV's portfolio.
Singh told PTI that InterGlobe Hotels already has invested approximately ₹2,000 in its existing Ibis portfolio. "In our system of development, we look at almost 200 opportunities in a year where we can invest, but we have our own criteria for investment. We focus on the cities and locations where we want to be present," he told the site. The company also follows the strategy of "densifying" its presence in the cities where it already has a presence, he added.
Interglobe will fund the expansion through a 50/50 mix of debt and equity, he said.
According to Singh, the new developments are necessary to cater to growing to growing demand. "There is a huge need for more hotel rooms at the rate the economy is growing," he said. "There is vacuum in the mid-market segment. Opportunity here is enormous."
InterGlobe Hotels was established in 2004 for development of the Ibis brand in India, Nepal, Sri Lanka and Bangladesh. Accor owns a 40-percent stake in the JV; InterGlobe Enterprises a 60-percent stake, Singh said.