Why Ibis Is Betting Big on Indian Metros as Competitors Turn to Smaller Cities
Photo Credit: Ibis launched its fifth Mumbai property Ibis Mumbai BKC on March 20, 2025. Accor
Skift Take
As Ibis India is on its way to meet its initial pipeline target, it is reluctant to move away from its micro markets-focused strategy. The fact that it does not require large land parcels for hotels lends further edge for expansion in land-strapped metros and Tier-1 markets.
Ibis India is focusing on metros like Delhi, Mumbai, Hyderabad, Pune, and Bengaluru to drive its growth. The idea is to expand presence in markets that have a clear and present demand along with a need for supply, said JB Singh, president and CEO of InterGlobe Hotels, the development joint venture between Accor and InterGlobe Enterprises for Ibis hotels in India‚ Bangladesh, Nepal, and Sri Lanka.
“We follow what we call the densification strategy, according to which we enter a market and keep building hotels there,” Singh told Skift on the sidelines of the launch of Ibis Mumbai BKC on Thursday. “Given the urbanization trend and how cities are developing into metropolises with so many micro markets. We like to go to these micro markets.”
Singh said the brand would continue to follow that strategy and build hotels in these markets. “We expect these cities to keep getting bigger and have more micro markets and more demand for quality capacity.”
Location is of utmost importance to the brand, according to Singh. “We are very fussy about our location. It has to be an AAA location, and cannot be even 500 metres away from the AAA location because location is something we commit to our customers.” An AAA location is a prime, highly desirable location within a city which offers accessibility, visibility and amenities.
However, this does not mean that Ibis will not enter Tier-2 markets at all, he clarified. “As long as Tier-2 markets fulfill the criteria for demand and key location, we will consider them as well. Right now, not ma
