ibis is planning to add over 500 keys across four properties in India, taking total inventory to over 4,000 by 2022. While ibis, since its entry in 2008, operates 3,500 rooms across 19 properties (Ibis & Ibis Styles hotels) spanning 13 cities, its parent Accor operates over 9,500 rooms spread across 51 properties under 10 brands across 21 cities in joint venture with Interglobe Hotels, an arm of holding company of budget carrier Indigo since the past 14 years.
The expansion is focused on three cities — Mumbai, Bengaluru and Goa–which are already functioning almost at pre-pandemic levels, though the revenue normalisation may take a quarter or two, Sylvain Laroche, Director of Operations, at ibis India.
‘While we’re already profitable operationally thanks to lower staff cost and other cost cutting, I don’t see revenue reaching 2019 levels in 2021, though this year should be much better than the pandemic-hit 2020. I see revenue scaling back to 2019 levels only in 2022,’ said Laroche, who has been heading domestic operations since June 2019.
Come July 2021, Ibis will open a 180-key property at Vikhroli in Mumbai; a 150-keys Ibis Styles in Goa by the end of the year and a 180-rooms Ibis at Hebbal near Bengaluru by early 2022, and adding 510 rooms to the existing 3,500 keys, he said.
“But pricing is still down 30-35 per cent and I see this normalising over the next one or two quarters,’ Laroche noted, adding the management focus is solely on room rates now and ‘as soon we cross 60 per cent occupancy, we will hike pricing to pre-pandemic levels. He said almost 30 per cent of the staff who went home during the pandemic have not returned yet, helping it cut operational cost.”
