French hospitality giant Accor and InterGlobe Enterprises, an Indian conglomerate that is the largest shareholder of low-cost carrier IndiGo, will form an autonomous joint venture that will manage both companies' hotel holdings in India, the companies announced Wednesday. Additionally, the companies said they would invest in Indian budget hotel franchisor Treebo and become that company's largest shareholder.
Financial terms of both transactions were undisclosed.
Accor currently operates 71 hotels in India, at service tiers from luxury to economy, it said, and has another in the country's pipeline. InterGlobe has 22 properties in India, mostly flagged as Accor's Ibis properties under the terms of a 2005 development agreement. The new venture will bring together the management of those properties and will serve as the vehicle for growth and development of Accor brands in the country.
Accor said it aims to have in India "a network of 300 hotels under Accor brands by 2030."
"By strengthening its long-lasting strategic partnership with InterGlobe, Accor aims to unlock India's full hospitality potential, leading the transformation of the sector while catering to Indian travelers both domestically and globally," Accor said in a statement.
InterGlobe co-founded IndiGo in 2005 and holds more than a 35 percent share in the carrier, which is India's largest by domestic market share. As part of the announcement, Accor said the companies would collaborate on a loyalty program partnership; IndiGo last year said it was developing a loyalty program.
As part of Accor and InterGlobe's investment in Treebo, the Indian budget hotelier would "take the lead to develop the Ibis and Mercure brands in India through a master license agreement," according to the companies. Treebo manages about 800 hotels in more than 100 cities in India, according to the companies, under brands including Treebo, Medalio and Itsy Hotels.
Treebo already has reached an agreement with owners to convert 10 properties to Accor's Mercure brand, according to Accor.
"This landmark partnership marks a transformative moment for Accor and its brands in India," Accor chairman and CEO Sébastien Bazin said in a statement. "By aligning with our long-term successful and trusted partner InterGlobe and bringing together the best of hospitality, tech and entrepreneurship in India, we are unlocking unprecedented growth potential in one of the world’s most exciting travel markets."
The transactions are subject to Indian government approval, according to the companies.
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