InterGlobe Hotels to expand operations, raises Rs 700 crore for adding 6 hotels in India by 2022

InterGlobe Hotels, a joint venture between InterGlobe Enterprises and the leading hospitality player Accor Asia Pacific (AAPC), is looking forward to making an investment of over Rs 700 crore and expand its operations by adding six hotels in India in the upcoming three years. At present, the company owns 19 hotels across the country under the ‘ibis’ brand with 3,559 rooms.

Talking about the company’s expansion plan, InterGlobe Hotels’ president and CEO JB Singh said, “By 2022 we will have up to 25 hotels in India. We will be adding 6 more hotels in the country. We will be investing around Rs 700 crore for this expansion.”

“The new hotels will come up at Bengaluru, Mumbai, Thane, and Goa. With the addition of these six hotels, we will be adding around 980 rooms,” he added.

Over 2,000 crore has already been invested by the company in it’s the portfolio of ‘ibis’ hotels till now, Singh said.

On being asked about the company’s strategy for expansion, he said; “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”.

Additionally, the company also follows the strategy of densifying presence in the cities where we are already present, he added.

Talking about the funds required by InterGlobe for expansion, JB Singh said, “It will be through a mix of debt and equity. Around 50 percent will be equity and 50 percent will be debt.”

Focusing on the need for more hotel rooms in the country, Singh said, “There is a huge need for more hotel rooms at the rate the economy is growing. There is a vacuum in the mid-market segment. The opportunity here is enormous”.

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