**Ibis Hotels Expands Focus on Mid-Market Segment in Tier I Cities of India**
Ibis Hotels, a collaboration between InterGlobe and Accor, is strategically targeting tier I cities in India to enhance its mid-market positioning. The company aims to expand its presence in key urban centers to cater to the increasing demand for quality accommodations.
### Focus on Tier I Cities
– **Who:** Ibis Hotels, a joint venture of InterGlobe Enterprises and Accor Asia Pacific.
– **What:** The company is shifting its focus from budget to mid-market hotels.
– **When:** As of March 2025, with ongoing expansion plans.
– **Where:** Primarily in tier I cities across India.
– **Why:** To meet the growing demand for quality hotel options in urban areas.
### Growth Opportunities in India
JB Singh, president and CEO of InterGlobe Hotels, highlighted the significant opportunity for branded hotels in India, noting that the market is currently under-penetrated. He stated, “There is a huge opportunity in India to build more branded hotels. Classified hotels are severely under-penetrated.”
– **Market Growth:** The travel and tourism sector is expected to grow at a rate of 1.5 to 2 times, ensuring an industry growth of 8-14% over the long term.
– **Occupancy Rates:** Key markets have reported occupancy rates between 85-89%.
### Mid-Market Positioning
While Accor categorizes Ibis as a budget brand, Singh emphasizes the quality of construction and service, positioning it as a mid-market chain. “We don’t look at ourselves as a budget brand. We are a mid-market hotel company purely because of the projects we do,” he explained.
– **Recent Developments:** The company recently opened a new property in Mumbai’s BKC business center, featuring 206 rooms with a per key cost of approximately ₹40 lakh.
– **Current Portfolio:** Ibis operates 29 properties in India, with one more under development.
### Conclusion
With a strong focus on quality and strategic expansion, Ibis Hotels is poised to capture a significant share of the mid-market segment in India’s hospitality industry. How will this shift impact the competitive landscape among hotel brands in India?
**FAQ: What is the primary focus of Ibis Hotels in India?**
Ibis Hotels is focusing on expanding its presence in tier I cities of India, transitioning from a budget to a mid-market positioning to meet the demand for quality accommodations.