InterGlobe Hotels will invest around Rs 550 crore to set up two new properties in Mumbai and Bengaluru by 2025, its President and CEO JB Singh said on Thursday.
The company -- a 60:40 joint venture between InterGlobe Enterprises Pvt Ltd and Accor Asia Pacific -- opened its new 'ibis Styles' hotel here and plans to open a new property under the 'ibis' brand in Mumbai by the end of next year, followed by the launch of a new hotel under the Novotel brand in Bengaluru early 2025.
"This (ibis Styles Vagator) becomes the 23rd ibis (property in India), but as a portfolio, we are at 28 hotels, with this and two to open (which are) under active development. The ibis in Mumbai will open sometime late next year and the Novotel in Bangalore within 2-4 months of that or early 2025," Singh told PTI here.
He was responding to a query on the company's expansion plans.
When asked about the investments in the two new properties, Singh said, "We will add 207 rooms in Mumbai at an ibis, which will have an investment of about Rs 250 crore, and we will add a little over 140 rooms in Bangalore, this will be a Novotel (brand), which will probably have an investment of Rs 300 crore".
On future expansion plans beyond 2025, Singh said, "We have a 2030 plan. We are looking at it. We are under the active evaluation of several projects".
However, he said, the company will wait for the projects to be ratified and signed off by the board to make a formal announcement, which is expected in the next six months or so.
"We will continue to populate the market and grow as we keep growing in all our businesses. As a company, we fundamentally believe in the growth of India. We fundamentally believe in the robustness of the economy and what is going to present over the next 20-30 years," Singh asserted.
In terms of geography for setting up the new properties, he said, "We will remain committed to densification. The cities are becoming very very large, and urbanisation is a megatrend that we can't ignore as a company. So, we have to address that".
As far as the tier II and III markets are concerned, he said, the company is looking at them, and two to three markets are under active consideration while Goa remains the front runner in the leisure segment for the company.
On the revenue growth, Singh said it is "growing very robustly", and the plan for 2023 is to clock Rs 1,100 crore.
InterGlobe Hotels, established in 2004 to develop a network of 'ibis' hotels throughout India, Nepal, Sri Lanka, and Bangladesh, has committed an investment of Rs 6,000 crore across 30 hotels, he added.