Courting business

Marriott International takes aim at the business traveller segment in India with the opening of the first Marriott Courtyard in Chennai, and more to follow.

Marriott, the leading global hospitality chain, has just opened its Courtyard brand of hotels in Chennai, the first of its kind in India, aimed at the business traveller.

"We didn't choose Madras to be the first property, it just developed sooner than the other potential deals," says Rajat Chatterjee, general manager, Courtyard by Marriott, Chennai.

"But having said that, Chennai attracts a large number of business travellers and the hospitality market here is very buoyant right now," he says.

There are an estimated 1,000 rooms available in the executive class hotel segment in Chennai. "The hotel is located near the central business district and we are projecting an average occupancy rate of 70 per cent, with up to 90 per cent in peak season (November to March)," indicates Chatterjee.

The hotel will open only part of its inventory until it gauges demand. "As such, most of our competitors in the business segment have all added 100-150 rooms to their properties in the last year, and although demand hasn't outstripped supply yet, we expect the two to go hand in hand," declares Chatterjee.

What about cities of soaring demand like Bangalore? Chatterjee responds, "We have Courtyard properties planned for Mumbai, Delhi, Hyderabad and Bangalore, but it's hard to say exactly when they will materialise."

The Courtyard by Marriott in Hyderabad, that will replace the existing Viceroy hotel, is the next to open.

Despite earlier reports that the Courtyard in Chennai would price itself in the Rs 3,500-5,000 room bracket, Chatterjee says that "Our rooms range from US $150 up to $335. We consider the Courtyard a first class business hotel, designed for and by business travellers, but at the same time, we are not the most expensive in the segment even in Chennai."

Internationally, the Marriott chain has been raising its room rates as occupancy levels increase. In Q4, Marriott International posted a 25 per cent jump in profits partly due to this room rate inflation.

Courtyard operates 700 hotels across the globe. Overall, the company operates on an asset-light business model, whereby it manages and operates hotels under its various brands without necessarily owning them.

There are currently six Marriott properties in India, three in Mumbai and one each in Delhi, Goa and Chennai. The Courtyard property in Chennai is under a management agreement with Palm Grove Beach Hotels Pvt Ltd.