Marriott International, the biggest hotel chain in the world, has set its sights on expanding to at least 10 new cities across India over the next two years, with the aim of introducing more than 100 new properties in these locations.
Anthony Capuano, President & CEO of Marriott International, said, “We are in 40 cities today, that should be 50 cities or more by 2025. And maybe what is exciting to me is that results in us creating 10,000 new jobs across India.”
He stated that Marriott International aims to launch a total of 250 hotels in India by 2025, which encompasses those that are presently open and those under construction. With over 8,000 properties in 139 nations, Marriott International operates 30 different brands. The company is presently managing 140 hotels in India.
Capuano stated that Marriott International’s development strategy in India centers on providing the appropriate product in each market for every purpose of the trip.
“We have to continue to stay focused on the domestic market which is strong and growing. I had the good fortune to spend a bit of time with India’s tourism minister and one of the things we talked about is the importance, as an industry and certainly from Marriott’s perspective, to continue to tell the story globally of what a rich and diverse set of experiences the country offers,” he said, adding that Marriott wants to offer ensure lodging offerings in all of these destinations.
Travel Trends:
‘Bleisure’, a term coined to refer to the combination of business and leisure travel, has emerged as a new trend in the travel industry in the aftermath of the Covid-19 pandemic.
“We talked about this (blended travel) a bit in our fourth-quarter earnings call. The fact that Thursday and Sunday were days of the week that were covered most quickly, I think this is the best empirical data that supports the idea that more and more visitors are blending business and leisure travel or leisure and group travel. That’s great news for our industry, and it is a trend I continue to see in the future,” he said.
Apart from focusing on the physical aspects of hotels, such as their architecture and design, it has become essential to contemplate the programming choices for fitness and spa facilities, and the evolving food and beverage services. According to him, the development of mixed travel experiences has further intensified this necessity.
Business Forecast for 2023:
The Marriott International CEO said their forecast for 2023 is continued strong growth. “We gave a relatively large per average room (PAR) growth globally — 6-11 percent — 100 or 200 bps more than the wider range typically,” he said.
Capuano mentioned that during a recent meeting with stakeholders in Boston, he was questioned about the potential impact of factors such as the interest rate environment and socio-political instability on the hotel industry’s ongoing recovery. However, despite these concerns, Capuano stated that the available data does not suggest any slowdown in the recovery. He referred to the first quarter of the year as particularly robust and reported continued strong bookings.
