As Marriott International eyes 250 hotels in India, PM Modi asks them to explore India’s islands & palaces too | India News
NEW DELHI: Marriott International, the worldтАЩs largest hospitality company and the biggest sectoral player in India, has set a target to take the combined number of open and pipeline hotels in the country to 250 by 2025. With 141 hotels operational and 70 in pipeline as of now, the American majorтАЩs president & CEO Anthony Capuano says conversions will play a key role in the growth globally and in India too. Marriott had last year taken over the iconic Leela Goa and converted that into a St Regis and more such high profile badhe changes may happen in coming months.
Capuano met Prime Minister Modi on Thursday who asked the group to look beyond big cities and look at other places like IndiaтАЩs pristine islands and palaces.
тАЬPM Modi encouraged us to look at some of the palaces. He is keenly focussed on continued growth of the hospitality industry in India. The PM encouraged us to grow not just in primary cities but in secondary and tertiary cities across the country. He spoke about different destinations, places, islands, with the idea being for us to go to unexplored areas and create hotel infra there so that people can visit those places. He talked with great enthusiasm about the growth of the Indian middle class and its growth to explore the country,тАЭ Capuano said.
Marriott currently is present in 40 cities in India and has the largest number of branded hotel rooms in India at over 27,000. It will soon be present in over 50 Indian cities in coming months.
The one thing the PM was very enthused about is that fact that a lot of Indian owners who have settled abroad are now wanting to return to India and make hotels or invest in hotels here, especially in their home states or home cities.
тАЬAt a conference in India this week, I felt I was back in the US as a number of our valued partners in the US were here to explore opportunities to develop hotels in their home countries. The PM was very happy to hear this,тАЭ the CEO said.
тАЬSixty per cent of all hotels in the US are owned by Indians or Indian-Americans. Even in our company 25% of our executive suite is Indian. You feel an inherent interest and passion for hospitality when you travel across India. So to me itтАЩs not surprising that Indians have a disproportionate impact on the global hospitality industry,тАЭ Capuano said.
The group says some owners of Marriott properties in India are looking at the proposed divestment of the capitalтАЩs Ashoka Hotel closely and if one of them emerges as the successful bidder, the Ashoka could become a Marriott. тАЬThere is definitely interest and we will look at many of our partners,тАЭ Rajeev Menon, MarriottтАЩs president (Asia Pacific) said.
About conversions, the president-CEO said: тАЬThere has been a constriction in the debt market globally for new construction due to the economic uncertainty. In such times we tend to see a downward pressure on the pace of new constructions but a parallel increase or acceleration in conversion activity. Nearly a third of our (recent) signings and openings globally came from conversions and that will remain a focus area in the next several quarters. Conversions are a great opportunity for us to to often access the best locations.тАЭ
Asked if Marriott is in talks with some players in India for conversion, he said: тАЬYes, we are always in conversation. Here (in India) we have a great blend of both new construction starts and conversion activity. We will continue to scan the market for conversion opportunities. Apart from Leela Goa, Marriott has done some high profile conversions in the Asia Pacific including the JW Marriott Auckland and a deal with one of the biggest conglomerates in Vietnamese hotel group Vinpearl to convert six hotels.
тАЬOur brands are in very strong demand thanks to the loyalty programme, distribution system and performance. As a result there are considerable discussions going on globally and in India as well,тАЭ Rajeev Menon said.
тАЬI have been with the company for nearly 30 years and conversions have always been an important part of our growth story. But they have tended to be individual asset conversion. The Vietnamese Vinperal transaction saw us convert six hotels in a single transaction. We will continue to look at individual asset conversions but you will also see us on a parallel track talking to owners who have portfolios of hotels for multi unit transactions,тАЭ Capuano said.
Hotel owners currently affiliated to some sub-performing brands are looking at flight to better names with stronger loyalty programmes. тАЬWe are seeing more and more inbound inquiries of conversion opportunities,тАЭ Capuano added.
For example, a hotel being built in India under a branding tie-up with a foreign hospitality brand got stuck during Covid. One of MarriottтАЩs India partners bought it. That place was modified and was opened as Westin Goa in March 2021.
The pandemic saw travellers make use of technology in a big way in both airlines and hotels. Marriott is in the midst of a тАЬvery significant platformingтАЭ of its tech systems including global reservation, property management and loyalty platforms. This will allow travellers to seamlessly select type of rooms (like connecting) and view by the new tech platforms as well sell their other offering including food & beverage through the platform.
тАЬOn the existing reservation platform I can only sell you a room. But the new platform will allow us to present all our offerings to travellers on one place,тАЭ Capuano said.
Last year Marriott тАФ like most travel companies тАФ recorded record high revenues and profits. India was among the fastest recovering markets for the hospitality major globally.
Capuano met Prime Minister Modi on Thursday who asked the group to look beyond big cities and look at other places like IndiaтАЩs pristine islands and palaces.
тАЬPM Modi encouraged us to look at some of the palaces. He is keenly focussed on continued growth of the hospitality industry in India. The PM encouraged us to grow not just in primary cities but in secondary and tertiary cities across the country. He spoke about different destinations, places, islands, with the idea being for us to go to unexplored areas and create hotel infra there so that people can visit those places. He talked with great enthusiasm about the growth of the Indian middle class and its growth to explore the country,тАЭ Capuano said.
Marriott currently is present in 40 cities in India and has the largest number of branded hotel rooms in India at over 27,000. It will soon be present in over 50 Indian cities in coming months.
The one thing the PM was very enthused about is that fact that a lot of Indian owners who have settled abroad are now wanting to return to India and make hotels or invest in hotels here, especially in their home states or home cities.
тАЬAt a conference in India this week, I felt I was back in the US as a number of our valued partners in the US were here to explore opportunities to develop hotels in their home countries. The PM was very happy to hear this,тАЭ the CEO said.
тАЬSixty per cent of all hotels in the US are owned by Indians or Indian-Americans. Even in our company 25% of our executive suite is Indian. You feel an inherent interest and passion for hospitality when you travel across India. So to me itтАЩs not surprising that Indians have a disproportionate impact on the global hospitality industry,тАЭ Capuano said.
The group says some owners of Marriott properties in India are looking at the proposed divestment of the capitalтАЩs Ashoka Hotel closely and if one of them emerges as the successful bidder, the Ashoka could become a Marriott. тАЬThere is definitely interest and we will look at many of our partners,тАЭ Rajeev Menon, MarriottтАЩs president (Asia Pacific) said.
About conversions, the president-CEO said: тАЬThere has been a constriction in the debt market globally for new construction due to the economic uncertainty. In such times we tend to see a downward pressure on the pace of new constructions but a parallel increase or acceleration in conversion activity. Nearly a third of our (recent) signings and openings globally came from conversions and that will remain a focus area in the next several quarters. Conversions are a great opportunity for us to to often access the best locations.тАЭ
Asked if Marriott is in talks with some players in India for conversion, he said: тАЬYes, we are always in conversation. Here (in India) we have a great blend of both new construction starts and conversion activity. We will continue to scan the market for conversion opportunities. Apart from Leela Goa, Marriott has done some high profile conversions in the Asia Pacific including the JW Marriott Auckland and a deal with one of the biggest conglomerates in Vietnamese hotel group Vinpearl to convert six hotels.
тАЬOur brands are in very strong demand thanks to the loyalty programme, distribution system and performance. As a result there are considerable discussions going on globally and in India as well,тАЭ Rajeev Menon said.
тАЬI have been with the company for nearly 30 years and conversions have always been an important part of our growth story. But they have tended to be individual asset conversion. The Vietnamese Vinperal transaction saw us convert six hotels in a single transaction. We will continue to look at individual asset conversions but you will also see us on a parallel track talking to owners who have portfolios of hotels for multi unit transactions,тАЭ Capuano said.
Hotel owners currently affiliated to some sub-performing brands are looking at flight to better names with stronger loyalty programmes. тАЬWe are seeing more and more inbound inquiries of conversion opportunities,тАЭ Capuano added.
For example, a hotel being built in India under a branding tie-up with a foreign hospitality brand got stuck during Covid. One of MarriottтАЩs India partners bought it. That place was modified and was opened as Westin Goa in March 2021.
The pandemic saw travellers make use of technology in a big way in both airlines and hotels. Marriott is in the midst of a тАЬvery significant platformingтАЭ of its tech systems including global reservation, property management and loyalty platforms. This will allow travellers to seamlessly select type of rooms (like connecting) and view by the new tech platforms as well sell their other offering including food & beverage through the platform.
тАЬOn the existing reservation platform I can only sell you a room. But the new platform will allow us to present all our offerings to travellers on one place,тАЭ Capuano said.
Last year Marriott тАФ like most travel companies тАФ recorded record high revenues and profits. India was among the fastest recovering markets for the hospitality major globally.
