Over the last eleven years, New Delhi-based InterGlobe Enterprises (IGE), promoter of India’s largest airline IndiGo, and French hospitality major Accor have together built a sizeable hospitality business in the country with 24 operational hotels. InterGlobe Hotels, which is a 60:40 venture between IGE and Accor, operates 17 mid-market Ibis hotels across India. While Triguna Hospitality Ventures, a tripartite India entity consisting of IGE, Accor and the Government of Singapore, operates four upscale Novotel hotels, two Ibis and a 270-room upscale Pullman hotel.

By the end of calendar 2019 these properties combined would generate revenues of about ₹700 crore.“From an IGE level the hospitality business is big,” said JB Singh, president and CEO, InterGlobe Hotels in a freewheeling interview with Fortune India. Jean-Michel Casse, COO, India and South Asia, AccorHotels, who was also present, spoke about the company’s growth plans for India and why he believes Oyo Rooms isn’t competition. Edited excerpts:

Why the need for two separate hospitality ventures?

Singh: We [IGE] are specialised in the travel space. Hospitality was always something that are owners Kapil and Rahul Bhatia were keen on. And we were clear that we wanted to be in the economy and mid-market space. We found the right partner in Accor who understood the space very well. Our first Ibis property in Gurugram opened in 2008. To date, InterGlobe Hotels has invested in excess of ₹2,000 crore, with an additional investment of ₹700 crore to develop six more Ibis hotels that would roll out by 2022.

Casse: In 2010, we setup Triguna Hospitality Ventures—with IGE, Accor and Government of Singapore—each owning a one-third stake. We realised that with our partners [IGE] we may have opportunities to develop bigger hotels with other Accor brands.

Singh: Triguna has also invested ₹2,000 crore across its seven properties.

Casse: Today, in India, we are managing 51 Accor properties. Besides our joint venture properties with IGE, all the others are standalone hotels with different owners–an asset light model approach. At present, we have 24 hotels that are under various stages of design and development.

Triguna Hospitality Ventures

InterGlobe Enterprises’ hospitality play