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AccorHotels opens first combo property in Chennai

Wednesday, November 15, 2017, 18:00 Hrs  [IST]
By Anurag Tiwari | Chennai

Chennai became the third city in India after Bengaluru and Delhi to be home to AccorHotels’ combo property with the opening of Novotel and ibis Chennai OMR. AccorHotels’ seventh property in Chennai, Novotel and ibis became operational from November 12, 2017. The combo property is situated on city’s Old Mahabalipuram Road (OMR), popularly known as Chennai’s IT hub. The combined 342 keys property has been developed under a strategic partnership between Accor Hotels, Interglobe Enterprises and APHV India Investco Pte Ltd. Novotel, the upper midscale brand of AccorHotels enjoys a share of 153 rooms while ibis, the economy brand has 189 rooms at the property.

Jean Michel Casse, COO, India & South Asia, AccorHotels, said that Novotel and ibis Chennai OMR will serve as one of the most relevant properties of AccorHotels in Chennai that will cater to the different market needs. “Tamil Nadu and in particular Chennai is a very friendly market for us. After successful implementation of combo properties in Bengaluru and Delhi, we expect the Novotel and ibis Chennai OMR to perform on the same level. At this property guests will be able to choose between luxury and economy brand at the same time. With the support of Interglobe Enterprises and APHV India Investco Pte Ltd we have completed this long awaited project and we are confident that this property will be able to cater to all the hospitality needs of Chennai especially the corporate clients present in the vicinity.”

With the launch of this property AccorHotels now has 53 properties in India divided among its 10 brands. Talking about expansion plans, Casse said that by the end of 2017 AccorHotels will have 55 properties in India. “We have 30 hotels in development which will increase our inventory by 5,000 keys in the next five years. We are focusing on asset based investment model more than the acquisition based investment model for the expansions here in India,” he added.

Commenting on the launch, Daniel Chao, GM, Novotel and ibis Chennai OMR & General Manager Delegate for AccorHotels, Chennai said, “Novotel and ibis Chennai OMR is one of the most awaited properties in India for us. We chose Chennai as it is the fourth largest city in India and our already established properties in this city are yielding great results. This is a mix of 4-star (Novotel) and 3-star (ibis) property which offers equal offerings for leisure and corporate travellers.”

There will be a 30% difference in room rates between Novotel and ibis rooms at this property. Through this property AccorHotels is targeting a minimum of 10% growth in RevPAR annually.

Talking about the source markets for its two brands across India Casse said that Novotel receives 60% of its guests from the domestic market and the remaining from the inbound travellers, while 80% of ibis guests are from the domestic market. Casse said that AccorHotels is first focusing on densifying its already established markets like Coimbatore, Nagpur, Lucknow, Kochi, Mumbai and Goa and will then move on to explore the new markets in India, especially Tier-II markets.

AccorHotels has 800 hotels in Asia Pacific which contribute 25% of the total revenue for the hospitality group. Notably in India AccorHotels earns majority of its business from its loyalty programme members, approximately 800,000 in India. Also, the company does 45% of its sales through the digital sales platforms and is concentrating its efforts on digital marketing and promotions.

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