Marriott International, which has crossed the ₹9,000 crore turnover and 32 per cent revPAR, expects the next leg of growth to come from tier 2 and 3 markets, said Rajeev Menon, President, Asia Pacific excluding China, Marriott International.
Speaking to businessline, Menon talked about the company’s premiumisation strategy as Marriott International completes 25 years in the country.
“Our revenue per available room in India was up 32 per cent to the year before, and we had crossed over ₹9,000 crore in turnover,” revealed Menon. The first-quarter booking patterns suggest a promising future, with a double-digit growth trajectory anticipated for the upcoming year. The hospitality chain has 28 signed deals over the past year and the start of 2024 and has added over 4,600 rooms to its development pipeline for South Asia.
Strategic focus
“When you think about secondary, tertiary markets in many cases, the biggest growth will be in our upscale brands,” emphasized Menon, shedding light on Marriott’s strategic focus on upscale offerings such as Fairfield by Marriott and Courtyard by Marriott in emerging markets. Cities like Indore and Jaipur are thriving, showcasing the potential of these secondary markets.
“In Surat, we started with a Courtyard by Marriott. The second hotel we opened was a Marriott. Now, early this year we signed the JW Marriott,” detailed the President, Asia Pacific excluding China, Marriott International, providing a clear example of market transformation and the growing demand for luxury offerings. The evolution of Surat’s market from Courtyard to Marriott and now JW Marriott highlights the dynamic nature of these markets.
“There was a shift to more Luxury and Premium hotels signing,” disclosed Menon, emphasizing a notable change in Marriott’s deal patterns. The shift towards luxury and premium establishments is driven by investor confidence in long-term demand, even amid increased construction costs. Investors see the potential for higher occupancy rates, translating to a more promising return on investment.
The US-headquartered hotel chain has completed 25 years of operations in India. Over the past two and half decades, the company has opened 148 hotels across 17 brands in 40+ cities.
Premium brands
With six new additions to the signed pipeline for Premium brands, Marriott Hotels and Resorts, the company’s flagship brand, is expected to debut in emerging destinations with Guwahati Marriott Resort & Spa, Ludhiana Marriott Hotel, Ayodhya Marriott Hotel, Shimla Marriott Hotel and the Amritsar Marriott Hotel. Westin Hotels & Resorts will augment the wellness portfolio with the anticipated addition of the Westin Hyderabad Resort and the Westin Coorg Resort and Spa. Le Meridien Hotels & Resorts is expected to expand its footprint in North India with the Le Méridien Jalandhar.
“More weighted towards leisure destinations in terms of resorts and Luxury and Premium products,” noted Menon, underlining Marriott’s strategic emphasis on the leisure segment. The company is aligning its offerings with evolving preferences, with a significant focus on resorts and luxury and premium experiences.
Menon also highlighted that Marriott India’s robust financial performance and strategic realignment reflect its adaptability and resilience in a dynamic hospitality landscape. The surge in upscale offerings, penetration into emerging markets, and a strategic pivot towards luxury experiences position Marriott for continued success in the evolving industry.