"Marriott International Targets Double-Digit Growth, Eyes Expansion in Tier 2 and 3 Cities"

Rajeev Menon, President of Marriott International for Asia Pacific excluding China, disclosed that the hospitality giant, Marriott International, with a turnover exceeding ₹9,000 crore and a remarkable 32% revenue per available room (revPAR), is directing its growth strategy towards tier 2 and 3 cities.

In an interview with businessline, Menon outlined Marriott's premiumisation strategy as the company celebrates 25 years of operations in India. "Our revenue per available room in India surged by 32% compared to the previous year, surpassing the ₹9,000 crore mark," revealed Menon, expressing optimism for the future. He anticipates a double-digit growth trajectory for the upcoming year, buoyed by promising first-quarter booking patterns. The hospitality chain has inked 28 deals over the past year and the onset of 2024, adding over 4,600 rooms to its development pipeline in South Asia.

Menon underscored the significance of upscale brands such as Fairfield by Marriott and Courtyard by Marriott in driving growth in emerging markets. He highlighted the thriving nature of secondary markets like Indore and Jaipur, emphasizing the potential of upscale offerings in these regions.

The President illustrated the evolving landscape in cities like Surat, where Marriott's presence has transformed from Courtyard to Marriott and now to JW Marriott, showcasing the escalating demand for luxury accommodations in burgeoning markets.

Menon disclosed a notable shift towards luxury and premium hotel signings, indicative of investor confidence in long-term demand despite escalating construction costs. This transition is fueled by the anticipation of higher occupancy rates and a promising return on investment.

Marriott International has completed a quarter-century milestone in India, during which it has established 148 hotels across 17 brands in over 40 cities, reflecting its enduring commitment to the Indian hospitality landscape.

HBL