Marriott International Signs Milestone Six Hotel Deal With Hotel Owner Prestige Group To Expand Footprint In India

Under the new agreement, the company expects to add nearly 1000 rooms in India and debut its Millennial-focused Moxy brand in South Asia

Bangalore, 27th November 2019: Marriott International, Inc (NASDAQ: MAR) and Prestige Group, today announced the signing of agreements to open six new hotels across India, underscoring both companies’ commitment to expanding in this dynamic country. Under the agreement, Prestige Group would build new hotels across the W, JW Marriott, Tribute Portfolio and Moxy brands across India’s Southern belt, representing nearly 1,000 rooms across four brands.

One of India’s largest and most successful real estate developers, Prestige Group, plans to open the W Bengaluru, Tribute Portfolio Resort Bengaluru, Tribute Portfolio Hotel Kochi Maradu, JW Marriott Bengaluru Prestige Golfshire Resort & Spa, Moxy Chennai and Moxy Bengaluru, all of which are expected to open between 2021 and 2025. 

“We are continuously striving to expand our market reach, strengthen our growth and set new hospitality benchmarks. Our portfolio of 120 hotels across 16 brands reinforces our commitment to India, which remains a key focus market for Marriott International. We are thrilled to be introducing Moxy, our 17^th brand in South Asia with such an experienced and hotel developer like the Prestige Group”, said Mr. Rajeev Menon, President – Asia Pacific (excluding Greater China), Marriott International.

“India continues to be a critical growth engine for us in APAC. This country delivers strong results right from revenue and service, to some exceptional talent. At Marriott International, we are committed to delivering high standards of quality and service with our owners whom we share a very successful relationship with over the years.  Prestige Group and Marriott International has built a strong relationship over the years, and we are confident that together we are poised to change the hospitality landscape in India,” added Mr. Menon.

Mr. Irfan Razack – Chairman & Managing Director, Prestige Group said – “There are not many industries in the world that have the resilience and optimism of the hospitality sector in India.  The hotel industry has been one of the primary businesses driving the economic growth of the country. Projected to be worth INR 1,210.87 billion by 2023, the Indian hospitality sector today is witnessing an upward trend across mid-scale, upscale and luxury segments.  Renewed interest in the sector from leading global investors and steady infrastructure development in metros as well as tier II and tier III cities are driving the demand. Similarly, industry-friendly government policies, including the GST reduction from 28 per cent to 18 per cent for premium and luxury hotels, reduction of corporate tax and UDAN, the regional airport development and Regional Connectivity Scheme (RCS) aimed at making air travel affordable and widespread, are paving the way for robust market demand. The future holds immense promise.”

“And the Prestige Group is excited about working together with Marriott to explore new opportunities in the ever-evolving industry. We believe that strategic collaborations with the right partners facilitate dynamic disruptions. Given the improving economic environment and positive market sentiment, there couldn’t be a better time to tap into the tremendous growth opportunities that the Indian hospitality industry has to offer. With this signing, the Prestige Group is poised to become one of the largest hospitality players in India.”, he added.

Set to debut in India, the Moxy brand targets Next-gen millennial travellers with its fun and playful service, buzzing social spaces, and stylish, tech-forward guest rooms.  The agreement expects to see the anticipated opening of the 125-room Moxy Chennai and 200-room Moxy Bengaluru, which are both expected to open in2024. Combining style and affordability, this brand is unique in its youthful design aesthetics, thereby bringing freshness in this space.

With this signing, Marriott International is also expecting to open the W Bengaluru in 2025.  With 185 rooms, this hotel will continue to deliver its signature brand promise of Whatever/Whenever and break the norms of ‘traditional’ luxury with its eclectic offerings.  This will be the third ‘W’ branded property in India after Goa & W Mumbai.

The company is also slated to open the JW Marriott Bengaluru Prestige Golfshire Resort & Spa, a 299-room resort, located at a 20-25-minute drive from Kempegowda International Airport Bengaluru in 2022. Inspired by the principles of mindfulness and featuring touchpoints of the JW Marriott’s intentional and reflective focus, the hotel will be a luxury haven for the sophisticated and mindful traveller with its finely curated programming and intuitive hospitality.

Bounded by their Indie spirit, Tribute Portfolio is a family of characterful, independent hotels with a captivating design, vibrant social scenes and sincerity in service that provides a sense of belonging for global travellers and locals alike. The 102-room Tribute Portfolio Resort Bengaluru is expected to open in 2021, and the 32-room Tribute Portfolio Hotel Kochi Maradu is anticipated to open in 2022. These Tribute Portfolio hotels represent independent, boutique hotels offering travellers a unique blend of character-driven charm, sense of community and captivating design.

Together with the Prestige Group, Marriott International launched its 100^th hotel in India last year with the opening of the Sheraton Grand Bengaluru WhitefieldHotel & Convention Center, and currently also manage the Aloft Bengaluru Cessna, Business Park.

Note on Forward-Looking Statements: This news release contains “forward-looking statements” within the meaning of federal securities laws, including the number of lodging properties the company may add in the future, and similar statements concerning possible future events or expectations that are not historical facts.  We caution you that these statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including changes in market conditions; changes in global and regional economies; supply and demand changes for hotel rooms; competitive conditions in the lodging industry; relationships with clients and property owners; the availability of capital to finance property growth and refurbishment; and other risk factors that the company identifies in its most recent annual report on Form 10-K or quarterly report on Form 10-Q; any of which could cause actual results to differ materially from the expectations we express or imply here.  We make these statements as of the date of this press release, and we assume no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About Marriott International,

Marriott International(NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 7,200 properties under 30 leading brands spanning 134 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company now offers one travel program, Marriott Bonvoy™, replacing Marriott Rewards®, The Ritz-Carlton Rewards®, and Starwood Preferred Guest®(SPG).

About Prestige Group

Prestige Group, one of the leading real estate developers in the country, has a legacy of over three decades in real estate development. It has diversified business models across the Residential, Office, Retail, and Hospitality segments with operations in 12 key locations in India. The Group has completed 241 projects with developable area of 125 mn sft and has 45 ongoing projects across segments, with total developable area of 49 mn sft. Further, it has 66 mn sft under planning and holds a land bank with potential developable area of over 29 mn sft. The company has been graded CRISIL DA1 by CRISIL and also enjoys credit rating of ICRA A+. The consolidated turnover of the company during FY2018-19 was Rupees 5,284 Crores with an operating income of Rupees 1,566 Crores.

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