Why Ibis Is Betting Big on Indian Metros as Competitors Turn to Smaller Cities


Skift Take

As Ibis India is on its way to meet its initial pipeline target, it is reluctant to move away from its micro markets-focused strategy. The fact that it does not require large land parcels for hotels lends further edge for expansion in land-strapped metros and Tier-1 markets.

Ibis India is focusing on metros like Delhi, Mumbai, Hyderabad, Pune, and Bengaluru to drive its growth. The idea is to expand presence in markets that have a clear and present demand along with a need for supply, said JB Singh, president and CEO of InterGlobe Hotels, the development joint venture between Accor and InterGlobe Enterprises for Ibis hotels in India‚ Bangladesh, Nepal, and Sri Lanka. 

“We follow what we call the densification strategy, according to which we enter a market and keep building hotels there,” Singh told Skift on the sidelines of the launch of Ibis Mumbai BKC on Thursday. “Given the urbanization trend and how cities are developing into metropolises with so many micro markets. We like to go to these micro markets.”

Singh said the brand would continue to follow that strategy and build hotels in these markets. “We expect these cities to keep getting bigger and have more micro markets and more demand for quality capacity.”