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Marriott International is entering the mid-market hotel segment with its Fairfield brand in October. The first hotel in this category is coming up in Bangalore. The company is planning to add 48 hotels in the next three to four years across brands. Currently, the hotel chain operates 23 properties in India.
The Fairfield brand operates in the budget segment globally but has been pegged a notch above in India because of additional features added to suit Indians. For instance, unlike the self-help breakfast facility in most countries, Fairfield would have a restaurant, a banquet space and also offer pre-packaged food delivery. Marriott plans to open 12 more Fairfield hotels in India by 2016-17.
Besides, Marriott will also launch its Edition luxury brand in Gurgaon in the next two years. This would take the India brand portfolio of the company to include eight of its labels. The long-awaited Ritz Carlton is also expected to open in Bangalore next month. “We are growing aggressively in India. This year alone we are adding seven hotels. Times are tough but we have a long-term focus. By 2015, we are expecting an upside in the supply of rooms,” said Rajeev Menon, Area Vice-President for South Asia and Australia. The company is in the process of getting clearances for its JW Marriott hotel in Delhi’s Aerocity. It also plans to launch around 19 Courtyard four-star hotels. The Courtyard brand is one of the main growth drivers for the group in India. The company is also exploring the possibility of getting its the Autograph Collection luxury brand to India. To support its upcoming expansion plans, the company planns to add over 4,000 employees to the current strength of 6,000 over the next three years.
Being one of the early entrants in Indian since 1999, Marriott International has witnessed many crest and troughs of the economy. However, this is a particularly tough time for the sector. “The country’s economy remains challenged and it will continue to be tough for another 18 months. Depreciating rupee is adding considerable stress to the bottom line, for the industry at large. There is slow growth in revenue per available room,” said Menon.
