Hotels

Innovate and create

Michael Issenberg MD Accor (Asia Pacific)

Michael Issenberg, MD, Accor (Asia Pacific), elaborates on how its internationally branded mid-market hotels will fill a void in the Indian hospitality sector

The most striking feature of Accor’s hotel network expansion has been its ability to innovate and create new hotel concepts. Michael Issenberg, managing director, Accor (Asia-Pacific) states, "Accor has developed its hotel portfolio through properly managed organic growth and careful acquisitions. This enables us to offer each customer base a wide range of solutions."

In March 2005, Accor joined forces with InterGlobe Enterprises to invest in and develop at least 25 Ibis economy hotels across India and South Asia over the next 10 to 12 years through its newly formed company, InterGlobe Hotels.

The game plan

Accor is planning growth in its two global professions - hotels and services. The group's strong resilience in the face of crises affecting the travel industry testifies the relevance of its economic model. It has instituted a groupwide Sustainable Development Committee in 2002 comprising various group functions including HR, environment, procurement, development, corporate and financial communications and operating departments.

On the horizon

Regarding plans for the Indian market, Accor along with InterGlobe, in which it has a 40 per cent stake, is expected to invest US $200 million in India in a project known as InterGlobe Hotels. In its first phase of initiatives is the aim to position Ibis hotels as the 'best value international hotels' across the region. Development is already underway in Bangalore and Gurgaon and more sites have been identified in Pune and Jaipur. The target cities for future development are Mumbai, New Delhi, Chennai and Hyderabad.

Accor is also actively negotiating the management of two purpose-built 300-room Novotel properties at Gurgaon. Meanwhile, the Hyderabad property has been finalised with Dubai-based Emaar Properties. Accor is also in discussion to manage Novotels in Chennai, Mumbai and Pune. "We also plan to promote our other major brands - Sofitel and Mercure - when appropriate projects become available," Issenberg adds.

Issenberg believes…

Issenberg believes that the establishment of an India-wide internationally branded economy hotel network will fill a major void in the Indian hospitality sector and cater to the extra demand that has resulted from growth in domestic and international travel. He is of the opinion that both luxury and mid-market or economy hotel segments in India will witness tremendous growth in the coming years.