Bangkok, March 9, 2005 - InterGlobe Enterprises, India's leading travel
and technology management company and Accor, one of the world's largest
hotel and tourism enterprise, today entered into a joint venture agreement
that represents a highly significant partnership for the Indian hospitality
sector.
InterGlobe
Hotels, a 60:40 joint venture between InterGlobe Enterprises and Accor
Asia Pacific, will invest in and develop a minimum of 25 'Ibis' brand economy
hotels across India and South Asia over the next 10-12 years. The venture
envisages an investment of over Rs. 850 Cr (approx US$200 million) over
this period.
The establishment of an India-wide internationally-branded economy
hotel network will fill a major void in the Indian hospitality sector and
cater for the extra demand that has resulted from the growth in domestic
and international travel.
InterGlobe's joint venture with Accor, acknowledged as the world leader
in economy and mid-priced hotels, has a vision to redefine the economy
hotel sector in India, positioning Ibis hotels as the preferred 'best value
international hotels' across the region. With over 650 hotels and close
to 70,000 rooms in 36 countries, Ibis hotels are renowned the world over
for their quality, simplicity and unbeatable value-for-money.
Development activity for Ibis hotels is already underway in Bangalore
and Gurgaon. Sites have also been identified in Pune and Jaipur. Together
these hotels will have over 700 rooms. Target cities for future development
are Mumbai, the National Capital Region, Chennai and Hyderabad.
Accor is pursuing management opportunities in the sub-continent and
actively negotiating the management of two purpose-built 300-room Novotel
brand hotels at Gurgaon and Hyderabad respectively. Accor is also in discussion
to manage Novotel hotels at Chennai, Mumbai and Pune.
Speaking at the launch of the joint ventures, Mr. Rahul Bhatia, Managing
Director, InterGlobe Enterprises said, "We at InterGlobe have a firm belief
in India's travel and tourism story, especially in enterprises that provide
consumers true value for money. Our joint venture with Accor for Ibis economy
hotels extends the large footprint we already have across India's travel
landscape. We are delighted to be partnering with the world leader in hotel
development and management."
Speaking on the occasion, Mr. Michael Issenberg, Managing Director,
Accor Asia Pacific said, "We could not have chosen a better partner for
the sub-continent than InterGlobe, with its diversified interests in travel
management, distribution and technology and with its established track
record of working with leading international companies in the travel business.
We are confident and excited about establishing our dominant presence in
the world's fastest growing travel market. We look to introduce our other
major brands - Sofitel, Novotel, and Mercure - when the appropriate projects
become available."
About Accor
With 158,000 people in 140 countries, Accor is the European leader and
one of the world's largest groups in travel, tourism and corporate services.
About InterGlobe Enterprises
Established in 1989, IGE is a travel corporation that services all requirements
of the travel and tourism industry through its dedicated business
units - InterGlobe Air Transport, for air transport and cruiseline management;
ITQ, for travel technology consulting and a full range of IT Services in
India; Galileo, for travel technology distribution; InterGlobe Technologies,
for global IT and BPO solutions and services; InterGlobe Hospitality for
restaurants; and InterGlobe Hotels, for hotel development.
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