As air transport costs in Asia fall and incomes rise, Accor sees a demand for more economy-class hotels. As a result it so far has plans to open 25 of its Ibis budget-brand hotels in China, India, Indonesia, and Thailand before end-2008; currently it has 30 in Asia Pacific.

In China, it plans to open 10 Ibis next year; there are three at present. In India the target is 20 Ibis before 2010.

In Indonesia, Accor plans to open an Ibis in Cawang (Jakarta), Semarang and Solo (both Central Java) before 2008. It already has nine open - including four in Jakarta.

Also significant is the opening of its first Formule 1 (generally billed by Accor as 0-star) hotel in Indonesia, in Jakarta's Menteng suburb. Rates are from US$26 (Rph239,000).

In Thailand, Accor and Thailand's Erawan Group have signed an agreement to open up to 10 Ibis in Bangkok, Chiangmai, Koh Samui, Krabi, Pattaya, and Phuket - six by 2008 and the others by 2010. Two have already opened in Bangkok this year; rates are from US$30.

Target markets for these Ibis will be domestic travellers as well as leisure travellers from China and India.

Each Ibis hotel will have 200-250 rooms and cost US$8-10mn to build.