Marriott International, the world’s largest hospitality company by room count, anticipates significant growth in India, its fifth-largest market.
Untapped͏͏ Markets͏͏ on͏͏ the͏͏ Radar:
David͏͏ S.͏͏ Marriott,͏͏ chairman͏͏ of͏͏ Marriott͏͏ International,͏͏ stated͏͏ that͏͏ there͏͏ is͏͏ significant͏͏ potential͏͏ to͏͏ expand͏͏ the͏͏ company’s͏͏ operations͏͏ in͏͏ India,͏͏ particularly͏͏ in͏͏ untapped͏͏ markets.
Marriott͏͏ operates͏͏ 153͏͏ hotels͏͏ across͏͏ 17͏͏ brands͏͏ in͏͏ India,͏͏ with͏͏ over͏͏ 29,000͏͏ rooms.͏͏ The͏͏ company͏͏ is͏͏ now͏͏ set͏͏ to͏͏ introduce͏͏ its͏͏ luxury͏͏ lifestyle͏͏ brand,͏͏ EDITION,͏͏ with͏͏ the͏͏ first͏͏ hotel͏͏ opening͏͏ in͏͏ Mumbai’s͏͏ Bandra͏͏ Kurla͏͏ Complex.
David͏͏ S.͏͏ Marriott͏͏ is͏͏ the͏͏ third͏͏ chairman͏͏ in͏͏ the͏͏ company’s͏͏ 97-year͏͏ history,͏͏ following͏͏ his͏͏ father,͏͏ J.W.͏͏ Marriott,͏͏ Jr.͏͏ (Bill),͏͏ and͏͏ his͏͏ grandfather,͏͏ J.W.͏͏ Marriott.
“The͏͏ team͏͏ is͏͏ on͏͏ track͏͏ to͏͏ achieve͏͏ double͏͏ the͏͏ number͏͏ of͏͏ signings͏͏ they’ve͏͏ ever͏͏ secured͏͏ in͏͏ India.͏͏ Growing͏͏ up͏͏ in͏͏ the͏͏ 80s,͏͏ I͏͏ witnessed͏͏ the͏͏ company’s͏͏ remarkable͏͏ growth͏͏ in͏͏ the͏͏ US.͏͏ A͏͏ few͏͏ years͏͏ ago,͏͏ we͏͏ experienced͏͏ that͏͏ same͏͏ explosive͏͏ expansion͏͏ in͏͏ China,͏͏ and͏͏ now͏͏ we͏͏ are͏͏ seeing͏͏ it͏͏ unfold͏͏ in͏͏ India,”͏͏ Marriott͏͏ stated.
Tapping͏͏ into͏͏ India’s͏͏ Demographics:
“When͏͏ you͏͏ take͏͏ into͏͏ account͏͏ that͏͏ India͏͏ has͏͏ 1.4͏͏ billion͏͏ people͏͏ and͏͏ a͏͏ middle͏͏ class͏͏ as͏͏ large͏͏ as͏͏ the͏͏ entire͏͏ population͏͏ of͏͏ the͏͏ US,͏͏ it’s͏͏ primed͏͏ for͏͏ growth,”͏͏ he͏͏ remarked.
“We͏͏ consider͏͏ ourselves͏͏ fortunate͏͏ to͏͏ have͏͏ entered͏͏ the͏͏ market͏͏ early͏͏ and͏͏ established͏͏ strong͏͏ brands͏͏ like͏͏ JW͏͏ Marriott͏͏ in͏͏ India.͏͏ It’s͏͏ exciting,͏͏ though͏͏ not͏͏ entirely͏͏ surprising,͏͏ to͏͏ see͏͏ the͏͏ immense͏͏ potential͏͏ here,”͏͏ he͏͏ added.
Marriott͏͏ emphasized͏͏ that͏͏ the͏͏ chain͏͏ enjoys͏͏ a͏͏ ‘strong’͏͏ market͏͏ share͏͏ in͏͏ India,͏͏ claiming͏͏ it͏͏ has͏͏ more͏͏ hotel͏͏ rooms͏͏ than͏͏ any͏͏ other͏͏ hospitality͏͏ company.͏͏ “In͏͏ India,͏͏ our͏͏ hotel͏͏ room͏͏ count͏͏ surpasses͏͏ that͏͏ of͏͏ Taj.͏͏ They͏͏ might͏͏ have͏͏ more͏͏ properties,͏͏ but͏͏ we͏͏ have͏͏ a͏͏ greater͏͏ number͏͏ of͏͏ rooms,”͏͏ he͏͏ noted.
Continue͏͏ Exploring:͏͏ Marriott International sees͏͏ India͏͏ as͏͏ a͏͏ ‘shining͏͏ star’͏͏ for͏͏ growth͏͏ with͏͏ plans͏͏ to͏͏ expand͏͏ to͏͏ 250͏͏ hotels͏͏ in͏͏ next͏͏ five͏͏ years
Regarding͏͏ the͏͏ prospects͏͏ of͏͏ the͏͏ Indian͏͏ market,͏͏ Marriott͏͏ stated,͏͏ “I͏͏ believe͏͏ we͏͏ are͏͏ at͏͏ the͏͏ start͏͏ of͏͏ a͏͏ growth͏͏ phase͏͏ for͏͏ quality͏͏ hospitality.͏͏ There͏͏ is͏͏ immense͏͏ potential͏͏ for͏͏ expansion,͏͏ and͏͏ in͏͏ my͏͏ view,͏͏ we͏͏ have͏͏ barely͏͏ scratched͏͏ the͏͏ surface͏͏ in͏͏ India.”
“There’s͏͏ a͏͏ vast͏͏ blank͏͏ canvas͏͏ for͏͏ us͏͏ in͏͏ secondary͏͏ and͏͏ tertiary͏͏ markets,͏͏ along͏͏ with͏͏ many͏͏ other͏͏ locations͏͏ across͏͏ the͏͏ country͏͏ where͏͏ we͏͏ are͏͏ not͏͏ yet͏͏ present,”͏͏ he͏͏ added.
Global͏͏ Expansion͏͏ and͏͏ Revenue͏͏ Growth:
Globally,͏͏ Marriott͏͏ International͏͏ boasts͏͏ 9,000͏͏ properties͏͏ with͏͏ nearly͏͏ 1.66͏͏ million͏͏ rooms.͏͏ The͏͏ company͏͏ reported͏͏ total͏͏ revenues͏͏ of͏͏ $23.7͏͏ billion͏͏ in͏͏ 2023,͏͏ reflecting͏͏ a͏͏ 14%͏͏ increase͏͏ from͏͏ 2022.
Rajeev͏͏ Menon,͏͏ president͏͏ of͏͏ Asia͏͏ Pacific͏͏ (excluding͏͏ China)͏͏ at͏͏ Marriott͏͏ International,͏͏ stated͏͏ that͏͏ 2024͏͏ has͏͏ marked͏͏ a͏͏ record͏͏ year͏͏ of͏͏ growth͏͏ in͏͏ India,͏͏ particularly͏͏ in͏͏ terms͏͏ of͏͏ property͏͏ signings.͏͏ “In͏͏ the͏͏ first͏͏ nine͏͏ months͏͏ alone,͏͏ our͏͏ team͏͏ has͏͏ signed͏͏ over͏͏ 5,000͏͏ rooms͏͏ in͏͏ India.͏͏ Notably,͏͏ 80%͏͏ of͏͏ these͏͏ signings͏͏ are͏͏ in͏͏ the͏͏ luxury͏͏ and͏͏ premium͏͏ segments,͏͏ showcasing͏͏ the͏͏ strong͏͏ demand͏͏ for͏͏ high-end͏͏ brands͏͏ in͏͏ the͏͏ market,”͏͏ he͏͏ added.
Commenting͏͏ on͏͏ the͏͏ ongoing͏͏ post-pandemic͏͏ travel͏͏ boom,͏͏ Marriott͏͏ stated,͏͏ “I͏͏ believe͏͏ we͏͏ are͏͏ entering͏͏ a͏͏ true͏͏ golden͏͏ age͏͏ of͏͏ travel,͏͏ driven͏͏ in͏͏ part͏͏ by͏͏ greater͏͏ accessibility͏͏ to͏͏ destinations͏͏ worldwide.͏͏ People͏͏ are͏͏ now͏͏ prioritising͏͏ experiences͏͏ over͏͏ large͏͏ homes͏͏ or͏͏ luxury͏͏ items—they͏͏ are͏͏ seeking͏͏ lasting͏͏ memories.”
Marriott͏͏ emphasized͏͏ two͏͏ significant͏͏ milestones͏͏ that͏͏ have͏͏ been͏͏ vital͏͏ for͏͏ the͏͏ company͏͏ in͏͏ the͏͏ past͏͏ 7-10͏͏ years:͏͏ the͏͏ acquisition͏͏ of͏͏ Starwood͏͏ Hotels͏͏ &͏͏ Resorts͏͏ and͏͏ a͏͏ strategic͏͏ shift͏͏ towards͏͏ leisure.͏͏ “I͏͏ believe͏͏ we͏͏ are͏͏ now͏͏ entering͏͏ a͏͏ third͏͏ milestone,͏͏ which͏͏ focuses͏͏ on͏͏ enhancing͏͏ our͏͏ reservation͏͏ system,͏͏ property͏͏ management͏͏ system,͏͏ and͏͏ the͏͏ technology͏͏ that͏͏ underpins͏͏ our͏͏ loyalty͏͏ programme,”͏͏ he͏͏ stated.
As͏͏ the͏͏ hospitality͏͏ industry͏͏ moves͏͏ towards͏͏ more͏͏ sustainable͏͏ practices,͏͏ Marriott͏͏ noted,͏͏ “While͏͏ sustainability͏͏ may͏͏ incur͏͏ costs,͏͏ it͏͏ also͏͏ results͏͏ in͏͏ savings.͏͏ More͏͏ importantly,͏͏ consumers͏͏ are͏͏ increasingly͏͏ drawn͏͏ to͏͏ brands͏͏ that͏͏ prioritise͏͏ sustainability.͏͏ This͏͏ alignment͏͏ provides͏͏ a͏͏ competitive͏͏ advantage͏͏ and͏͏ business͏͏ benefits͏͏ that͏͏ surpass͏͏ the͏͏ costs.͏͏ When͏͏ executed͏͏ properly,͏͏ the͏͏ financial͏͏ and͏͏ ethical͏͏ benefits͏͏ far͏͏ outweigh͏͏ the͏͏ expenses.”
As͏͏ hospitality͏͏ chains͏͏ strive͏͏ to͏͏ incorporate͏͏ more͏͏ technology͏͏ into͏͏ their͏͏ operations,͏͏ Marriott͏͏ stressed͏͏ that͏͏ it͏͏ cannot͏͏ replace͏͏ the͏͏ human͏͏ touch.͏͏ “Let͏͏ me͏͏ be͏͏ clear:͏͏ this͏͏ is͏͏ a͏͏ relationship-driven͏͏ business,͏͏ a͏͏ people-to-people͏͏ industry.͏͏ If͏͏ we͏͏ lose͏͏ that,͏͏ we͏͏ lose͏͏ our͏͏ direction.͏͏ Technology͏͏ is͏͏ not͏͏ meant͏͏ to͏͏ replace͏͏ the͏͏ human͏͏ touch;͏͏ it’s͏͏ intended͏͏ to͏͏ enhance͏͏ it.͏͏ It͏͏ gives͏͏ us͏͏ valuable͏͏ insights͏͏ into͏͏ our͏͏ customers,͏͏ allowing͏͏ us͏͏ to͏͏ understand͏͏ their͏͏ preferences͏͏ and͏͏ engage͏͏ with͏͏ them͏͏ more͏͏ effectively͏͏ to͏͏ deliver͏͏ the͏͏ unique,͏͏ personalised͏͏ experiences͏͏ they͏͏ desire.͏͏ That’s͏͏ the͏͏ true͏͏ purpose͏͏ of͏͏ technology.”
Regarding͏͏ disruption͏͏ in͏͏ the͏͏ hospitality͏͏ industry,͏͏ Marriott͏͏ remarked͏͏ that͏͏ the͏͏ market͏͏ has͏͏ naturally͏͏ distinguished͏͏ between͏͏ traditional͏͏ hotel͏͏ chains͏͏ and͏͏ startups͏͏ like͏͏ Airbnb.
“We͏͏ were͏͏ certainly͏͏ attentive͏͏ to͏͏ Airbnb͏͏ and͏͏ their͏͏ activities.͏͏ We͏͏ observed͏͏ that͏͏ for͏͏ certain͏͏ types͏͏ of͏͏ trips,͏͏ even͏͏ our͏͏ Bonvoy͏͏ members͏͏ were͏͏ opting͏͏ for͏͏ Airbnb͏͏ or͏͏ VRBO.͏͏ This͏͏ was͏͏ a͏͏ key͏͏ reason͏͏ behind͏͏ the͏͏ development͏͏ of͏͏ Marriott͏͏ Homes͏͏ and͏͏ Villas—to͏͏ provide͏͏ our͏͏ Bonvoy͏͏ customers͏͏ with͏͏ an͏͏ option͏͏ for͏͏ that͏͏ style͏͏ of͏͏ accommodation͏͏ within͏͏ our͏͏ own͏͏ ecosystem,”͏͏ he͏͏ said.͏͏ “We͏͏ currently͏͏ offer͏͏ over͏͏ 200,000͏͏ homes͏͏ and͏͏ villas͏͏ worldwide.͏͏ Interestingly,͏͏ this͏͏ topic͏͏ used͏͏ to͏͏ be͏͏ discussed͏͏ at͏͏ every͏͏ board͏͏ meeting;͏͏ now͏͏ it͏͏ may͏͏ only͏͏ be͏͏ mentioned͏͏ once͏͏ a͏͏ year,”͏͏ he͏͏ added.
As͏͏ the͏͏ chairman͏͏ of͏͏ a͏͏ global͏͏ hotel͏͏ company,͏͏ Marriott͏͏ must͏͏ strategise͏͏ for͏͏ growth͏͏ in͏͏ an͏͏ increasingly͏͏ complex͏͏ environment,͏͏ addressing͏͏ trends͏͏ such͏͏ as͏͏ de-globalisation,͏͏ the͏͏ slowdown͏͏ in͏͏ the͏͏ Chinese͏͏ market,͏͏ and͏͏ conflicts͏͏ in͏͏ areas͏͏ like͏͏ the͏͏ Middle͏͏ East͏͏ and͏͏ between͏͏ Ukraine͏͏ and͏͏ Russia.
Describing͏͏ it͏͏ as͏͏ a͏͏ complex͏͏ challenge,͏͏ David͏͏ S.͏͏ Marriott͏͏ stated͏͏ that͏͏ the͏͏ company͏͏ must͏͏ consistently͏͏ concentrate͏͏ on͏͏ the͏͏ appropriate͏͏ type͏͏ of͏͏ growth͏͏ for͏͏ each͏͏ market,͏͏ continent,͏͏ and͏͏ region.
“It’s͏͏ about͏͏ adopting͏͏ a͏͏ long-term͏͏ perspective.͏͏ Some͏͏ of͏͏ these͏͏ challenges,͏͏ I͏͏ hope͏͏ and͏͏ pray,͏͏ are͏͏ temporary.͏͏ However,͏͏ we͏͏ cannot͏͏ be͏͏ certain,͏͏ so͏͏ we͏͏ must͏͏ plan͏͏ for͏͏ the͏͏ next͏͏ 10͏͏ to͏͏ 20͏͏ years͏͏ instead͏͏ of͏͏ merely͏͏ reacting͏͏ to͏͏ the͏͏ local͏͏ challenges͏͏ we͏͏ encounter͏͏ today.͏͏ The͏͏ goal͏͏ is͏͏ to͏͏ work͏͏ through͏͏ and͏͏ resolve͏͏ these͏͏ issues͏͏ so͏͏ that͏͏ we͏͏ can͏͏ continue͏͏ to͏͏ make͏͏ progress,”͏͏ he͏͏ said.
No͏͏ one͏͏ in͏͏ the͏͏ industry͏͏ was͏͏ prepared͏͏ for͏͏ a͏͏ 90%͏͏ decline͏͏ in͏͏ revenue͏͏ during͏͏ the͏͏ Covid-19͏͏ pandemic,͏͏ Marriott͏͏ remarked.͏͏ “During͏͏ the͏͏ pandemic,͏͏ my͏͏ dad͏͏ frequently͏͏ said:͏͏ This͏͏ is͏͏ not͏͏ my͏͏ first͏͏ rodeo,͏͏ but͏͏ it’s͏͏ my͏͏ most͏͏ difficult͏͏ and͏͏ challenging͏͏ one.͏͏ However,͏͏ you͏͏ must͏͏ maintain͏͏ a͏͏ long-term͏͏ perspective͏͏ and͏͏ remember͏͏ that͏͏ you’ve͏͏ overcome͏͏ many͏͏ challenges͏͏ before.͏͏ When͏͏ my͏͏ grandparents͏͏ opened͏͏ their͏͏ nine-seat͏͏ root͏͏ beer͏͏ stand͏͏ in͏͏ Washington,͏͏ D.C.,͏͏ in͏͏ 1927,͏͏ they͏͏ were͏͏ just͏͏ a͏͏ few͏͏ years͏͏ away͏͏ from͏͏ the͏͏ Great͏͏ Depression.͏͏ Talk͏͏ about͏͏ bad͏͏ timing,͏͏ yet͏͏ they͏͏ managed͏͏ to͏͏ persevere.͏͏ Then͏͏ came͏͏ World͏͏ War͏͏ II,͏͏ 9/11,͏͏ and͏͏ real͏͏ estate͏͏ market͏͏ crashes—challenges͏͏ kept͏͏ coming.͏͏ You͏͏ have͏͏ to͏͏ stay͏͏ focused͏͏ on͏͏ the͏͏ long͏͏ game͏͏ and͏͏ work͏͏ through͏͏ these͏͏ obstacles͏͏ as͏͏ they͏͏ arise.”
