News: Spot problems hobble Ritz Carlton’s India entry
(DNA 18/08/2006) Kolkata - Marriott International, which is planning to bring the Ritz Carlton brand to India, is now facing challenges in the form of selecting the right location that will fit the super-premium profile of the brand.
Marriott is also anticipating considerable action in the courtyard space.
The tier-II cities that could be next on Marriott’s radar are Kochi, Nagpur and Indore since these are attractive from the mid-market point of view.
In the initial stages, Marriott is expected to bring three Ritz Carlton hotels into India. Indicating that only three cities in India - Mumbai, Delhi and Bangalore - can support the brand, Navjit Ahluwalia, director, Marriott International, told DNA Money that finding the right partner or location is becoming a challenge in India. “There are very few central, high-street locations,” Ahluwalia said.
Delhi is proving to be more difficult since most of the land the government is auctioning for building hotels is away from downtown locations.
Finding the right partner is also proving to be an uphill task for Marriott since building, say a 250-room premium property, will need investments of at least Rs 500 crore, including the cost of land.
The cost of one super premium room is pegged at about Rs 1.3 crore. However, Ahluwalia clarified that it is natural for the entire procedure to take time.
In India, only the Four Seasons that is coming up in Mumbai, from the Canadian luxury group, Four Seasons Hotels & Resorts, is in direct competition with Ritz Carlton.
Marriott is looking to set up 7-8 more of the “upper moderate service sector brand” courtyard.
Typically, any market will support a limited number of Ritz Carltons but several courtyards. Recently, courtyard properties in Noida, Gurgaon and Kolkata have been announced in agreement with real estate developers Unitech.
Marriott, globally, generally enters a market with the JW Marriott or Marriott brand and then brings in the courtyard. It is following the same pattern in India.
Worldwide, Marriott International follows the business model of management contracts. In India, Marriott manages the JW Marriott, Renaissance and Marriott Executive Apartments in Mumbai, a Marriott each in Delhi and Goa, the newly opened Marriott in Hyderabad and a courtyard in Chennai. A JW Marriott in Bangalore is on the anvil.
Marriott is also anticipating considerable action in the courtyard space.
The tier-II cities that could be next on Marriott’s radar are Kochi, Nagpur and Indore since these are attractive from the mid-market point of view.
In the initial stages, Marriott is expected to bring three Ritz Carlton hotels into India. Indicating that only three cities in India - Mumbai, Delhi and Bangalore - can support the brand, Navjit Ahluwalia, director, Marriott International, told DNA Money that finding the right partner or location is becoming a challenge in India. “There are very few central, high-street locations,” Ahluwalia said.
Delhi is proving to be more difficult since most of the land the government is auctioning for building hotels is away from downtown locations.
Finding the right partner is also proving to be an uphill task for Marriott since building, say a 250-room premium property, will need investments of at least Rs 500 crore, including the cost of land.
The cost of one super premium room is pegged at about Rs 1.3 crore. However, Ahluwalia clarified that it is natural for the entire procedure to take time.
In India, only the Four Seasons that is coming up in Mumbai, from the Canadian luxury group, Four Seasons Hotels & Resorts, is in direct competition with Ritz Carlton.
Marriott is looking to set up 7-8 more of the “upper moderate service sector brand” courtyard.
Typically, any market will support a limited number of Ritz Carltons but several courtyards. Recently, courtyard properties in Noida, Gurgaon and Kolkata have been announced in agreement with real estate developers Unitech.
Marriott, globally, generally enters a market with the JW Marriott or Marriott brand and then brings in the courtyard. It is following the same pattern in India.
Worldwide, Marriott International follows the business model of management contracts. In India, Marriott manages the JW Marriott, Renaissance and Marriott Executive Apartments in Mumbai, a Marriott each in Delhi and Goa, the newly opened Marriott in Hyderabad and a courtyard in Chennai. A JW Marriott in Bangalore is on the anvil.
posted by InCar Group Press Room at 22:39
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