India to become Marriott's 3rd-largest mkt in 5 years: CEO Anthony Capuano

Global hospitality giant Marriott International expects India to become its third-largest market within five years, as the country’s travel and hospitality sector continues to witness strong growth.

 

India is currently the Nasdaq-listed chain’s fifth-largest market. Marriott operates 17 brands in the country and announced the launch of its 18th — Edition — which is set to debut in Mumbai by 2028.

 

“Most certainly, five years from now, India will be our third-biggest market in the world, with several hundred hotels,” said Anthony Capuano, president and chief executive officer of Marriott International, speaking at the Skift India Forum here on Tuesday. “We will continue the momentum we enjoy in the upper, upscale, and luxury segment.”

 

In addition to this, he further said: “We will also look at the lower end of the chain scales and create more opportunities for the value-conscious inbound international traveller and the domestic traveller.”

 

With 155 hotels and over 29,000 rooms in over 40 Indian cities, Marriott is set to ramp up its presence further. This month, it will open a resort in Jim Corbett, followed by a hotel in Udaipur within the next three months.  

 

Marriott’s bullish outlook follows strong performance in South Asia, where revenue per available room (RevPAR) grew by 11 per cent last year, driven by higher average daily rates (ADR) and occupancy. Key metropolitan hubs — including Hyderabad, Gurugram, Bengaluru, and Mumbai — were pivotal in driving ADR growth, the company noted in a statement last week.

 

However, Capuano pointed to challenges in the Indian tourism and hospitality sector. He said a lot of “friction” needs to be ironed out, such as granting the infrastructure status to hotels. “It’s a big priority and an enabler for the acceleration of growth,” he said.

 

Infrastructure status would allow the industry to access long-term financing at lower rates and streamline licensing. The FY26 Union Budget provided some relief, with Finance Minister Nirmala Sitharaman granting infrastructure status to hotels in 50 selected tourist destinations.

 

Capuano also highlighted visa-related hurdles, calling for smoother processes for both inbound tourists eager to explore India and outbound travellers facing long wait times. “The biggest successes we see around the world in travel and tourism are the result of a good, deliberate partnership between the public and private sectors. In India, too, we have to keep pushing on how we can partner better (with the government),” he added.

 

With India’s hospitality sector booming, global hotel chains are vying for a bigger slice of the market. Earlier this month, Radisson Hotel Group unveiled plans to expand to 240 hotels, focusing on tier-II and III cities and the rising demand for luxury and midscale accommodations. The group currently operates or is developing 199 hotels across nine brands in India.

 

American hotel chain Hilton is also ramping up its presence, launching three new brands in the past four months—two midscale and one luxury—underscoring the sector’s rapid growth. “Significant macroeconomic growth, a rapidly rising middle class, and vast infrastructure development are fuelling demand for our brands and driving strong trading performance in the country. The year-on-year revenue growth in India is in early double digits, which is incredible for any business, and particularly for the hotel business,” Alan Watts, president of Asia-Pacific, Hilton, told Business Standard in a recent interview.

 

Hilton’s occupancy levels stood at 73–74 per cent in 2024, with RevPAR growing by 15–17 per cent over the same period.

 

Meanwhile, homegrown players are also making their moves. The Ladhani Group, which operates Sincere Developers, is in talks to expand the presence of Four Seasons and Ritz-Carlton, particularly in Agra, with a planned investment of ₹3,000 crore in its hospitality ventures.