Accor is going big in India, the country with the world’s largest population and, according to sources, the next major market for both domestic travel and inbound and outbound international travel.
On April 9, the French hotel giant entered the second phase of its partnership with Indian conglomerate InterGlobe. The two companies initially forged in 2004 but didn't take significant action.
That is about to change. The two partners created a platform that has plans to open 300 hotels in India under Accor brands by 2030.
It currently has 71 open hotels in India.
Both also have invested in a majority share of Indian hotel-franchising firm Treebo, which has approximately 800 hotels across India.
To start that arrangement off, Treebo signed 10 Mercure-branded hotels and an agreement to be the master franchisor for Accor’s Ibis and Mercure brands in India.
In an exclusive interview with CoStar News Hotels, Gaurav Bhushan, CEO of Accor’s lifestyle and leisure brands, and co-CEO at Accor joint venture Ennismore, said India’s hospitality industry is a “highly promising growth opportunity” that is predicted to increase from being valued at $281.83 billion in 2025 to $541.70 billion by 2030."
On May 20, Bhushan was appointed chair of the new Accor-InterGlobe platform.
“Accor is already uniquely positioned to harness this opportunity, leveraging its position as the third-largest international hospitality group in the country to become a market trailblazer," he said.
Our "strategy is to establish close partnerships with key local players to turbocharge expansion and embed our brands amongst Indian travelers,” he said.
Bhushan confirmed the 2030 timeline is on track.
“All segments are poised to grow fast. There is obviously huge potential for lifestyle brands as this is a category of brands that is still underdeveloped in India. The appeal of midscale and luxury brands also remains strong given the demographic characteristics,” he said.
Treebo to grow
Bhushan said the Treebo investment is key, with the Bengaluru-based firm being the “fastest-growing hospitality player in the economy segment with strong technology expertise.”
“They know the market intimately and will be able to develop [Mercure and Ibis] at an accelerated pace,” Bhushan said.
"This structure will help the company and brands only benefit from Treebo’s scale, technology and growth capabilities," he said. "Further, it will also ensure the right level of focus and direction for the teams of the new entity."
He said Ibis and Mercure are complementary to Treebo’s in-house brands, Treebo, Treebo Premium, Medalio and Itsy Hotels.
“Being an investor in Treebo ensures we are fully aligned on the targeted pace of growth and objectives. In that regard, this is close to what Accor has successfully delivered in China with Huazhu,” Bhushan added.
He said any other Accor-branded hotel the partnership will develop will be done so by a new company that is yet to be officially named.
Conglomerate cooperation
InterGlobe owns travel-retail firm Travelport and low-cost airline IndiGo. Bhushan said both firms’ strong loyalty programs will be put to full use in exploring joint marketing initiatives.
“Indian travelers are projected to become the fourth-largest spenders globally on tourism, with an estimated annual spend of $410 billion," he said.
He said India also is predicted to be among the top three fastest-growing outbound tourism markets and the fifth-largest outbound tourism market by 2027.
He said those numbers and Accor’s recent Indian partnerships will permit “significant opportunity in terms of capturing growing outbound travel.”
As with Accor's entry and growth in China, feet on the ground and local, knowledgeable partners in India are critical, Bhushan said.
“Accor’s longstanding, 20-year-plus collaboration with InterGlobe has been a major strategic lever and rendered this recent announcement as a highly attractive and logical next step to further the ambitions of both parties concerned,” Bhushan said.