Rahul Bhatia-led InterGlobe and French hospitality giant Accor on Wednesday announced a partnership with budget hotel chain Treebo. Accor and InterGlobe will jointly invest in and become the largest shareholder in Treebo, the duo said in a statement.

Treebo, which which manages 800 hotels across 120 cities and is seen as a rival to Oyo, will develop 'Ibis' and 'Mercure' brands in India through a licence agreement. As part of the partnership, Treebo reached an agreement with various property owners to sign 10 new Mercure hotels.

Accor’s brands will leverage Treebo’s technology to tap into India’s vast unbranded hotel market and accelerate growth. The combined Accor and Treebo portfolio will create India’s third-largest hospitality player, with over 30,000 rooms.

Accor and InterGlobe said in the statement that they will strengthen their partnership to create India’s "fastest-growing hospitality enterprise" with an ambitious network target of 300 hotels.

With the ambition of capturing India’s booming hospitality market and combining the strengths of global leaders across the industry, the new platform will target a network of 300 hotels under Accor brands by 2030, the statement added.

Accor and InterGlobe will bring together their currently owned assets, development and management businesses in the country to form an autonomous and integrated platform, the statement further said.

This new entity will become the exclusive vehicle for growing all Accor brands in India, including luxury and lifestyle brands from Ennismore, Accor’s fast-growing hospitality portfolio.

Accor will continue to lead operations and brand management and provide full access to its brands and services.

With a shared vision and a common ambition of transforming India’s hospitality industry, this alliance between InterGlobe and Accor is poised to turbocharge Accor’s presence in India with a target of 300 hotels under the Accor brands by 2030.

India is on track to become the world's fifth-largest outbound travel market and third-largest domestic travel market by 2027. A rapidly emerging middle class, improved infrastructure, and increased air connectivity have fueled an unprecedented boom in domestic tourism and international travel, notably into the Middle East and Asia Pacific, where Accor is the leading hotel operator.

“At InterGlobe, we have always believed in our commitment to building meaningful and enduring relationships with both our partners and the guests we serve. Today, I am delighted to further strengthen our two-decade long association with Accor through this strategic partnership. Together with InterGlobe’s deep market insights, Accor’s world-class services, India’s dynamic growth and evolving travel landscape, we aim to redefine the hospitality experience by offering exceptional value to our guests and setting new standards for excellence in the industry,” said Rahul Bhatia, Group Managing Director, InterGlobe Enterprises.

India’s hotel industry remains highly fragmented, presenting a major opportunity for organised, branded players. By strengthening its long-lasting strategic partnership with InterGlobe, Accor said it aims to unlock India’s full hospitality potential.

"This landmark partnership marks a transformative moment for Accor and its brands in India. By aligning with our long-term successful and trusted partner InterGlobe and bringing together the best of hospitality, tech and entrepreneurship in India, we are unlocking unprecedented growth potential in one of the world’s most exciting travel markets,” said Sébastien Bazin, Chairman & CEO of Accor.