Accor to set up hotels in India

Australian hotel major Accor, with its joint venture partner Interglobe, has earmarked Rs 600 crore (Rs 6 billion) for constructing mid-scale and economy hotels in Tier I and Tier II cities of the country.

"The focus of the company will be to construct "ibis" brand hotels in India, mid-scale and economy hotels, with an investment of Rs 600 crore," Gaurav Bhushan, Accor vice president (development - Asia Pacific) said on Thursday.

Gaurav, speaking on the sidelines of first hotel investment conference, said the company has identified several cities for constructing these brand hotels.

The average cost of a 200 to 250-room hotel is Rs 50 crore (Rs 500 million) and Accor was setting them at various cities, including Bangalore, Pune, Gurgaon, Jaipur, Chennai, Mumbai and Delhi, he said.

"We have completed land acquisition and other technical formalities in various cities for hotel construction. The construction will commence soon in Bangalore," he said.

Gaurav said the average cost in an ibis brand hotel would come around at Rs 1,800 to Rs 2,000 per day.

"We are actively promoting Novotel brand also in addition to luxury brand Sofitel. But at present, Accor will be focusing more on developing ibis brand in India," he said.

Accor has other brands like Mercure, All Seasons and Formule 1.