News: Marriott in talks to start budget hotels in India

(DNA 29/11/2006) Mumbai - Marriott International is seriously looking at the budget hotels space in India. With a network of 700 Courtyard brands worldwide, of which 500 alone are in the US, the hospitality major feels, India, along with China, are the two best budget hotels markets in the world.

Marriott is already in talks with various partners in Amritsar, Kochi, Thiruvananthapuram and Chandigarh.

It is not only looking for a presence in some 20-25 major cities in India but also weighing options of starting at least 50 Courtyards (Marriott's full-service four-star category) over the next 3-5 years in the country.

Five new Courtyards are in the pipeline in Pune, Hyderabad, Kolkata, Gurgaon and Noida.

In fact, Pune will see heightened activity in the form of three Courtyards, adding 1,000 rooms over the next few years. The first Courtyard opened in Chennai recently.
Navjit Ahluwalia, vice-president, Marriott International, told DNA Money: "The only deterrent is the cost of land, which is very high in India and does not thus merit a mid-market hotel."

Marriott claims to be the largest international hotels operator in India with 1,534 rooms across its six properties in the country. It will be adding 11 hotels by 2009, taking its room count to over 4,200. It is also scouting for land in Delhi, a 300-room Renaissance.

Another five-star Marriott brand, is coming up in Bangalore, a JW Marriott in Pune and Chennai respectively. Marriott worldwide follows a business model of management contracts for its premium hotels and franchises out its brands in the mid-market category. In India, it already manages a JW Marriott, Renaissance and Marriott Executive Apartments in Mumbai, a Marriott each in Delhi, Goa and Hyderabad and a Courtyard in Chennai.