JB Singh
In March 2020, we swiftly restrategised our business plan. We predicted that the pandemic’s impact on the industry would last over a 18 to 24 month business cycle, and that the first revival would be in September 2020
With a vision centered around design, efficiency, and sustainability, InterGlobe Hotels (IGH) has added capacity at a 33% CAGR over the last five years. Today, with 17 operating hotels and six under development, it is committed to 4100 keys across India.
“We committed ourselves to augment customer experience and at the same time create a model that is operationally and financially efficient. Speed has been critical,” said JB Singh, President and CEO, InterGlobe Hotels.
A business continuity plan triggered in February 2020 allowed the company to remain committed to its goals in COVID-19’s context. “In March 2020, we swiftly re-strategised our business plan. We predicted the pandemic’s impact on the industry would last over a 18 to 24 month business cycle, and that the first revival would be in September 2020,” Singh stated.
The execution of this plan ensured that business damage was minimised and IGH’s plans for ibis hotels are well on track. While it recently started the 206-Keys ibis Kalina Mumbai, The 249-key ibis Vikhroli will open in September 2021, followed by the 184-key ibis hotels in Thane and 154-key ibis Hebbal in mid-2022. “This will be followed by our second Goa property, the 142-key ibis Styles Vagator. We will also debut the 140-key Novotel in Bengaluru City Centre in 2023,” Singh informed.
TRIMMING COSTS
Last year, IGH restructured and delayered its organisation by building efficiencies of scale and managed to resize manning from 0.6 to 0.4 per room, while maintaining and facilitating smooth operation in its hotels. While the pandemic did cause some liquidity issues, the company maneuvered through promoter commitment, banking relations, and infusion of required equity and debt to aid business growth. Singh stated that it now aims to garner sufficient investment opportunities and explore avenues for new acquisitions.
“The hotel industry got an opportunity to reflect and refresh its vision. We have leveraged our strong geographical presence to seize new customer trends to fulfill guest expectations. We evaluated opportunities in emerging markets in leisure, industrial and business environments, and diversified our product portfolio to accommodate the growing needs of the customer,” he explained.
Colleagues at IGH were encouraged to develop new skills to contribute to changing business scenarios. The team came up with over 40 revenue generating ideas. While most are not implementable in their current form, Singh noted that this exercise made it clear that the industry has to revisit its business model and operating structures – something IGH had a headstart on.
