International hotel major, Marriott International, which plans to have at least five hotels in India by the beginning of the next century, is willing to pick up equity stake up to 25 per cent in hotel projects if it helps them further business activities.
The company which recorded world-wide sales of about $2.2 billion in the first quarter of 1998, has proposals to introduce the Ritz-Carlton, Courtyard by Marriott and Renaissance brands in the country too _ in some cases simultaneously with Marriott _ over a period of time.
`We have already signed management contracts with Indian companies in Delhi, Mumbai, Chennai and Goa for Marriott and are negotiating for Marriott hotels in Bangalore and Calcutta,' Marriott International's vice-president (hotel development-Asia/Pacific), Patrick J. McCudden, told Business Standard, adding that within the next 12 months the marketing process of the Courtyard brand too will start.
According to McCudden, Mariott International is not averse to pick up equity stakes in hotel projects in the country.
`If it helps us to get management contract we can pick up to 25 per cent stakes here in India, but till now we have not concluded any such deals,' McCudden added.
However, the proposed 222-room Marriott hotel in Delhi, where the property was to be developed by the Ansals, has run into rough weather with, reportedly, Ansals looking for buyers. McCudden clarified that the Ansals have not approached them for equity stake in the project.
In Mumbai, Marriott is working with a combination of the Raheja and Hinduja groups for the 371-room property. In Goa, the 193-room property would be developed by the Salgoankars.
For the Chennai project, Marriott has signed a memorandum of understanding with Golden Crest Hotels which recently got FIPB permission for NRI/OCB investments.
Though JW Marriott jr, chairman and chief exceutive of Marriott International, in an official statement last month had said that they `expected to invest over $1 billion annually in growth opportunities', McCudden was not forthcoming on the amount which Marriott probably has earmarked for expansions in India.
`The economics of investments in big cities in India is better than any other Asian country... But we don't have any iron-clad investments earmarked for India,' McCudden said, adding that the company, however, is not in favour of franchising most of its brands.
However, the Renaissance Hotel in Goa is a franchisee agreement as also the Ramada brand in Mumbai and Hyderabad.
