Ibis to add over 500 more keys by 2022, expects revenue normalisation
The expansion is focused on three cities -- Mumbai, Bengaluru and Goa--which are already functioning almost at pre-pandemic levels
Mumbai: The lifestyle focused mid-segment hotel chain Ibis, a part of the French hospitality major Accor Group, will add over 500 keys across four properties, taking total inventory to over 4,000 by 2022.
While Ibis, since its entry in 2008, operates 3,500 rooms across 19 properties (Ibis & Ibis Styles hotels) spanning 13 cities, its parent Accor operates over 9,500 rooms spread across 51 properties under 10 brands across 21 cities in joint venture with Interglobe Hotels, an arm of holding company of budget carrier Indigo since the past 14 years.
The expansion is focused on three cities — Mumbai, Bengaluru and Goa–which are already functioning almost at pre-pandemic levels, though the revenue normalisation may take a quarter or two, Sylvain Laroche, director of operations, at Ibis India told PTI.
“While we’re already profitable operationally thanks to lower staff cost and other cost cutting, I don’t see revenue reaching 2019 levels in 2021, though this year should be much better than the pandemic-hit 2020. I see revenue scaling back to 2019 levels only in 2022,” said Laroche, who has been heading domestic operations since June 2019.
While Ibis operates 18 smart economy properties, its other brand Ibis Styles runs life-style focused mid-segment hotel in Goa.
Come July 2021, Ibis will open a 180-key property at Vikhroli in Mumbai; a 150-keys Ibis Styles in Goa by the end of the year and a 180-rooms Ibis at Hebbal near Bengaluru by early 2022, and adding 510 rooms to the existing 3,500 keys, he said.
On the room occupancy, he said currently it’s over 50 per cent, up from 45 per cent in Q3 and expects this to further improve to 60-70 per cent by March. However, Pune and Goa and to a large extent Mumbai are running full and so is pricing there.
“But pricing is still down 30-35 per cent and I see this normalising over the next one or two quarters,” Laroche noted, adding the management focus is solely on room rates now and “as soon we cross 60 per cent occupancy, we will hike pricing to pre-pandemic levels”.
He said almost 30 per cent of the staff who went home during the pandemic have not returned yet, helping it cut operational cost.
Began in 1974, Ibis globally operates over 1,50,000 economy rooms across 1,200 hotels in 65 countries, while Accor runs over 5,000 properties across 110 countries.
The Gurugram-based InterGlobe Hotels is a joint venture between InterGlobe Enterprises that owns Indigo Airlines and the French hospitality giant Accor and owns 60 per cent in the JV.
Over the past 14 years, the JV has invested around Rs 2,000 crore and was planning to invest Rs 1,000 crore more before the pandemic.
Other Accor brands operational here include Fairmont, Sofitel, Pullman and Grand Mercure among others.
