Accor and InterGlobe have strengthened their existing partnership with a fresh hotel investment initiative, welcoming Pacifica’s affiliate as a key stakeholder in this venture.
Strategic Expansion in India’s Hospitality Market
This transaction will initially consists of seven strategically located hotel assets across India, all in varying phases of development. These hotels, which will be managed under Accor’s portfolio of brands, represent a combined initial valuation of approximately US$325 million.
A newly established investment fund will oversee these assets, with Accor and InterGlobe each holding a 32% equity stake, while an affiliate of Pacifica Partners (Pacifica) will acquire up to a 36% stake, pending regulatory approvals.
Pacifica’s Role & Market Prospects
Pacifica Partners functions as the asset manager for a joint hotel investment venture established between an affiliate of GIC Real Estate Pte. Ltd.—the real estate arm of the Government of Singapore Investment Corporation—and Host Hotels & Resorts, a prominent lodging and real estate company listed on the New York Stock Exchange.
Currently, the fund incorporates seven hotels jointly owned by Accor and InterGlobe, boasting a combined 1,750 rooms, with a total valuation of approximately US$325 million upon completion.
Locations & Timeline
These hotel developments are positioned in India’s prime gateway cities, including at the Delhi International Airport, one of Asia’s newest and largest aviation hubs. The full portfolio will open between 2011 and 2013.
The Seven Hotels
- Pullman Delhi International Airport – 270 rooms
- Novotel Delhi International Airport – 400 rooms
- Novotel Bangalore Outer Ring Road – 220 rooms
- Novotel Chennai SIPCOT – 180 rooms
- Novotel Chennai Old Mahabalipuram Road – 160 rooms
- Ibis Bangalore Outer Ring Road – 330 rooms
- Ibis Chennai Old Mahabalipuram Road – 190 rooms
Statements from Industry Leaders
Gilles Pélisson, Chairman & CEO of Accor, highlighted: “This fund demonstrates Accor’s ability to expand into new markets through strategic partnerships, fostering a high-quality asset portfolio while unlocking their potential. Pacifica’s investment strengthens our growth prospects in India, where Accor and InterGlobe have already built an extensive pipeline.”
Rahul Bhatia, Group Managing Director of InterGlobe Enterprises, commented: > “We are dedicated to expanding our footprint in India’s hotel sector. This fund reflects our commitment to establishing upper midscale and upscale hotels across the country.”
Peter Meyer, Managing Director of Pacifica Partners, added: > “India is currently one of the world’s most promising markets for lodging growth. This fund offers an excellent opportunity to capitalise on this demand, leveraging Accor’s global expertise alongside InterGlobe’s strong domestic presence.”
Future Growth & Market Position
This investment fund serves as a foundation for further expansion, primarily targeting upper midscale and upscale hotel developments. New assets may be acquired into the fund as market opportunities arise.
Since entering India five years ago through its joint venture with InterGlobe Enterprises, Accor has successfully launched eight hotels across the country. Its brand presence spans luxury to budget accommodation, making Accor the most diverse international hotel operator in India.
A further 43 hotels are currently in the pipeline, including those within the new investment fund. Of these, 25 hotels are expected to be completed within the next two years, many of which are already under construction.
With a workforce of 145,000 employees worldwide, Accor continues to deliver nearly 45 years of industry expertise to its partners and guests.
This collaboration marks a significant stride in India’s evolving hospitality landscape, paving the way for dynamic growth and enhanced accommodation experiences.
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