In an exciting development for the Indian hospitality sector, Accor, a leading global hotel group, has announced a significant expansion of its partnership with InterGlobe Enterprises, the parent company of India’s largest airline, IndiGo. This collaboration aims to establish India’s third-largest hospitality platform by the year 2030. The two companies, which have been working together since 2004 through their joint venture, InterGlobe Hotels, will now consolidate their efforts to enhance their offerings across the country.

Strengthening the Partnership

Under the new agreement, Accor will streamline its operations in India while InterGlobe will transfer its hospitality assets into a new, integrated entity. The ambitious target is to operate 300 hotels under various Accor brands by 2030. Currently, Accor manages 71 hotels in India, with an additional 40 in the works. The portfolio includes renowned brands like Raffles, Fairmont, Sofitel, Pullman, Grand Mercure, Novotel, and Mercure, along with the popular ibis and ibis Styles chains.

Shared Vision for Growth

Rahul Bhatia, Managing Director of InterGlobe Enterprises, expressed his enthusiasm about this strengthened collaboration. He stated, “We are thrilled to enhance our two-decade relationship with Accor. By combining InterGlobe’s market insights with Accor’s exceptional service standards, we aim to transform the hospitality landscape in India.”

Expanding Horizons with Treebo

In addition to the hotel expansion, this partnership will allow Accor and InterGlobe to invest in the budget hotel chain Treebo, making them its largest shareholders. As part of this venture, Treebo plans to open ten new Mercure-branded hotels in collaboration with various property owners. This initiative will significantly boost the combined portfolio to approximately 30,000 rooms, capitalizing on the growing domestic tourism and increasing air travel demand in India.

Sebastien Bazin, Chairman and CEO of Accor, noted the transformative potential of this partnership, stating, “This agreement represents a pivotal moment for Accor in India. We are poised to tap into one of the world’s fastest-growing travel markets.”

Loyalty Program Collaboration

In a further move to strengthen their alliance, IndiGo and Accor announced a new collaboration to integrate their loyalty programs—IndiGo BluChip and Accor Live Limitless. This partnership will allow customers to share reward points and participate in co-branded loyalty initiatives, enhancing the overall experience for travelers.

Investment Background

Accor has been involved with Treebo since 2021, when the company participated in a funding round that raised approximately Rs 137 crore. Current ownership stakes in Treebo show that founders Sidharth Gupta, Rahul Chaudhary, and Kadamjeet Jain hold 23.10%, while institutional investors like Bertelsmann India Investments and Ward Ferry own 53.74%. Additionally, angel investors and Treebo employees hold the remaining shares.

This strategic expansion not only highlights the collaborative spirit between Accor and InterGlobe but also signifies a robust response to the evolving travel landscape in India. As these two industry giants join forces, the future looks promising for hospitality in the region.