Accor earmarks USD 150 million investment in India by 2014
News Date: 19th August 2010
Global hospitality firm Accor Wednesday said it has earmarked an investment of USD 150 million (around Rs 700 crore) for opening 60 hotels in India by 2014.
"In India, we have committed an investment of USD 150 million. A part of this has already been spent in Indian operations," Accor Chief Executive Officer Gilles Pelisson told reporters here.
The company said it plans to open 90 hotels by 2015, out of which contracts for 60 hotels have already been signed. Out of the total, it plans to open 21 hotels by the end of 2012.
"Our target is to have 90 hotels by 2015. We have already committed 60 hotels. So the fund will be for the 60 hotels, which will open by 2014," Accor Chairman (Asia Pacific)Michael Issenberg said.
At present Accor, in partnership with InterGlobe Enterprises, runs eight hotels across the country under three different brands --Novotel, Ibis and Mercure.
The company said it has recently partnered with Pacifica to creat an investment fund for its expansion plans in the country.
While Pacifica, a joint venture between the Government of Singapore Investment Corporation and Host Hotels and Resorts, has 36 per cent stake in the fund, Accor and Interglobe holds the remaining stake.
"We are in great expansion mode in India. We are going to invest on building hotels in the midscale and economy segment," Pelisson said.
Besides, the company said it is planning to bring its global hotel brands -- Sofitel, Pullman and Formule1 in the country by 2011.
"We are focused on Novotel and Ibis brands in India. Ibis is a brand which takes off well in India," he said.
While Novotel operates in the upper midscale segment, Ibis is present in the economy segment.
The France-based hotel group said it plans to open 19 Ibis hotels with a 3600 rooms across India by 2015. At present, it has 2 hotels in the country and eight more are coming up by 2011.