Economy hotel revolution takes hold in Asia

The economy-hotel sector is beginning to accelerate in Asia with leading economy-hotel operator, Accor, announcing the debut of its Ibis brand in Thailand, the launch of its second Ibis in China and a new Ibis for the Korean capital of Seoul.

Two Ibis hotels will open in Bangkok in early 2006. The 189-room Ibis Siam Bangkok and the 288-room Ibis Huamark Bangkok are both in prime commercial locations with easy access to Bangkok’s mass transit systems.

A third Ibis – the 150-room Ibis Fenix Bangkok – will open at the end of 2006. Located off busy Sukhumvit Road, the Ibis is near Queen Sirikit National Convention Centre, the BTS Skytrain station and recently opened Bangkok Mass Rapid Transit underground system. 

The hotels will be the first internationally-branded economy hotels launched in Bangkok, a city where international operators have largely concentrated on the top end of the market. Accor currently manages 11 hotels in Bangkok under its Sofitel, Novotel and Mercure brands.

In the South Korean capital, Seoul, Accor has announced a second Ibis after its first economy hotel in the Gangnam business district recorded occupancies of over 90% for its first two years.

The new Ibis is being constructed out of an existing property in the heart of the prestigious business and retail district of Myeong-dong, often considered the “Ginza” of Seoul.

The Hotel Ibis Myeong-dong is being developed as part of a US$300 million retail and hotel complex and is scheduled for completion in the second half of 2006. The 280 room hotel will be built above nine levels of retail outlets, and the hotel will offer a restaurant, sauna, gym and meeting/function facilities.

The Hotel Ibis Myeong-dong will offer the district’s best value international standard accommodation. Rates will be in the vicinity of US$100, compared to average rates of US$180 for upmarket accommodation.

In China, Accor launched its second Ibis in the regional centre of Chengdu. The first Ibis, in Tianjin, is being extended because of the success of the project. Both Ibis hotels have been established in new hi-tech economic zones and target the local and international business market.

During 2006 Accor plans to open new Ibis hotels in Qingdao, Chongqing, Wuxi and Zhongshan, and the network is scheduled to grow to 12 by 2007.

Ibis will also make its debut in India in 2006 as part of a major roll-out of the brand in the country. The US$200 million project aims for a network of 20 Ibis hotels in India within 10 years.

Commenting on the Ibis brand launch in Thailand and its expansion in Asia, Accor Asia Pacific Managing Director, Michael Issenberg, said that Ibis was satisfying a clear market need in Asia that other international groups had ignored.

“The economy sector of the market in Asia is largely dominated by domestic chains and individual hotels that may have variable standards and lack the consistency of service and facilities that travellers would expect of a global brand,” he said.

“With the proliferation of low-cost air carriers servicing Asia, the region has seen dramatic increases in business and leisure travel, but much of this business is travelling on a strict budget and – to date – internationally-branded hotels have been out of their reach. Ibis has changed that situation dramatically and in all centres where Ibis has been launched – such as Hong Kong, Jakarta, Seoul and Tianjin – it has built a strong market almost overnight.

“The domestic and intra-Asia travel markets are often under-estimated by hotel developers. This will be undoubtedly the strongest growing market over the next five years, and there is the additional benefit of this market sector being less susceptible to world events and economic fluctuations.

“The expansion of Ibis continues Accor’s policy of diversification, ensuring that we offer a full range of product right across the spectrum.”