News: Marriott set to introduce Ritz Carlton in India

(DNA 05/04/2006) Kolkata - After bringing in well-known hospitality brands like the JW Marriott, Marriott, Renaissance and Courtyard, Marriott International is now readying plans to introduce the high-profile Ritz Carlton to India.

Marriott is also planning to expand its serviced apartment business. The blueprint is to manage new properties that will be a combination of hotels and serviced apartments.

With average room tariffs of $300 per night, the Ritz Carlton is a top-end label from Marriott’s stable. “The market in India is now ready to support such rates,” Navjit Ahluwalia, director, development, Marriott International, told DNA Money. The cities Marriott is looking at are Mumbai, Delhi and Bangalore. “We are looking to bring the Ritz Carlton to India in the medium term,” said Ahluwalia.

Ritz Carlton will be clubbed with its executive apartments, which too will operate in the high-end space. The project should kick-start in the not too distant future. “It all depends on finding the right partners to work with,” indicated Ahluwalia. Incidentally, real estate bigwigs Rahejas have built properties like the JW Marriott in Mumbai and Courtyard in Chennai.

At present, Marriott operates only one serviced apartment property in the country, the 173-room, Marriott Executive Apartments (MEA) in Mumbai. The 253-room Renaissance hotel is also located on the same site. Currently, it is exploring properties in Chennai, Gurgaon and Bangalore among others.

“The idea is to have hotels and serviced apartments in the same location as this will save costs though profits could be as high as 60%,” said Ahluwalia. He added location costs, which comprise almost 50% of the entire investment in some cases, can be offset through a rational and simultaneous use of land in hotel and serviced apartments. Other cost saving factors could be in the form of single management, marketing and accounts teams.

Marriott International is predominantly involved in managing hotels. Worldwide, there are more than 2,700 Marriott International lodging properties but it owns less than 10 hotels.

Currently, Marriott International operates five brands in India, including the luxury JW Marriott and Renaissance Hotels & Resorts and Marriott Executive Apartments (all in Mumbai), the premium full-service brand Marriott (in Delhi and Hyderabad), Marriott Hotels & Resorts (Goa), and five star select services Courtyard (Chennai). A JW hotel is under construction in Bangalore.