Marriott International, the world's largest hotel chain, is exploring opportunities to set up branded residences in prime urban and resort locations in India, a top company official said.
“Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai offer an exciting growth opportunity,” Trinh Quynh Phuong, senior director, mixed-use development, APEC, Marriott International, told Moneycontrol. “Leisure destinations located a short drive from metropolitan areas such as Goa present an ideal opportunity for second homes that offer turnkey convenience that enable homebuyers to move right into a fully furnished home and ‘lock up and leave.’”
Branded residences are luxury homes for which hospitality chains lend their brand and provide management services for a fee.
The segment is back after a hiatus of almost 15 years because of better regulation of India’s real estate market and growth in wealth accumulated by high net-worth individuals, especially after the pandemic.
The concept dates back to the 1920s in New York, when the Sherry-Netherland hotel opened with luxury apartments facing Central Park. In Asia, the first branded residence project dates back to 1988 with the development of Amanpuri in Phuket, Thailand.
Marriott International plans to expand to at least 10 new cities in India in the next two years with over 100 new properties.
"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," Anthony Capuano, president of Marriott International, told CNBC-TV18 on April 12.
According to him, the company plans to operate 250 hotels in India by 2025, including those already open and those under construction. Marriott operates 30 brands and more than 8,000 properties in 139 countries. The company currently operates 140 hotels in India.
Capuano said the company's development strategy in India is to ensure that the right product is available in every market for every trip purpose.
"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.
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