Accor, a European hotelier with more than 4,000 properties worldwide, is targeting 120 Ibis-branded economy hotels under development in the mainland by 2010, up from the seven properties currently in operation, Asia-Pacific managing director Michael Issenberg said.
Unlike many foreign and homegrown competitors in the mainland's increasingly crowded budget hotel sector that are aiming to expand through franchise deals and hotel management contracts, Accor plans to build and own all of the new Ibis properties, Mr Issenberg said in an interview.
'This is our most aggressive position in Asia,' he said. 'It's very important to have an absolutely standard product.'
Ibis competes in the mainland against foreign-owned rivals including Super 8, the world's largest budget hotel chain, and InterContinental Hotels Group, owner of Holiday Inn Hotels and Holiday Inn Express.
Local competitors are numerous and many are cashed-up from overseas stock offerings and investment from private equity groups. They include Hong Kong-listed Shanghai Jin Jiang International Hotels, the mainland's largest hotelier with half of its properties falling into the budget category, and Nasdaq-listed budget hotelier Home Inns Hotel Management.
Morgan Stanley has a 20 per cent stake in local startup Merrylin Group, operator of budget hotel franchises Motel 168 and Motel 268. US private equity firm Warburg Pincus last year took a 20 per cent stake in Guangzhou-based 7 Days Inn, a budget operator focused on southern China with 17 hotels and 14 in the pipeline.
Despite expansion plans by its rivals, Mr Issenberg dismissed concerns about a potential oversupply.