Total Land Area In Goa

Total Land Area in Goa
1,67,000 SFT
Area of The Wave
1,25,000 SFT
Area of the Fairfield by Marriot
72,000 SFT
Number of Flats
Number of Villas
104
6
Number of Rooms in the Hotel
(Includes 10 Suite Rooms)
147
•
FOREIGN TOURISTS :
Goa handled around 16% of all foreign tourist arrivals (FTAs) to India in 2007 and has become one of the most popular holiday
destinations for Europeans. Driven by the economic reforms during the early 1990s and the subsequent devaluation of the
Indian currency, there was a steep rise in the number of foreign nationals choosing Goa as a leisure destination across 1990-95
at a CAGR of 17.05%. The years between 2002-2007 saw a steady increase in foreign tourist arrivals.
Source: Department of Tourism
•
DOMESTIC TOURISTS :
Across 1985 to 2008, the quantum of domestic tourists visiting Goa has grown at a CAGR of 5.96%. However, a closer inspection
reveals that from 1985 to 2000, the growth rate in domestic tourists was a moderate 2.42% p.a, with the same rising to a robust
13.6% p.a across 2000-2006. This can be attributed to a general rise in disposable income and an increased propensity to spend
driven by a buoyant economy post-2000.
Source: Department of Tourism
TRENDS IN PERCENTAGE OF DOMESTIC & FOREIGN TOURISTS IN GOA :
In 1985, foreign and domestic tourists accounted for around 12% and 88% of all tourists arriving in Goa, respectively. Across
1985 to 2000, the share of foreign tourists nearly doubled to 23%. Post-2000, buyout economic conditions and the subsequent
rise in the standard of living of middle class population drove the share of domestic tourists from 77% in 2000 to around 85% in
2006. Thus, presently foreign nationals account for around 15% of tourists arriving in Goa.
Source: Department of Tourism
•
MARKET SHARE OF SOUTH & NORTH GOA :
The trends observed in foreign tourist arrivals in 2007 indicate that North Goa is the preferred district having a market share of
around 55%-65% as against a lower share for South Goa. This is quite likely as North Goa has well known localities like Anjuna,
Baga and Calangute in addition to the capital Panaji. Interestingly, North-Goa’s market share is the highest during off-season
months of August and September while that of South Goa peaks during season months of April and May. The trends observed in
domestic tourist arrivals also indicate that North Goa is the more preferred district of the two.
Source: Department of Tourism
Distribution of Branded Hotels Area Wise
North Goa – 13%
South Goa – 64%
Central Goa – 23%
CHARTER PLANE ARRIVALS :
Table 3 : Year-wise Tourist Arrivals in GOA by Chartered Flights
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Season (Oct-May)
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
CAGR
No. of Tourists/ Flight
148.67
169.27
216.76
116.93
86.60
141.83
141.34
153.94
195.21
191.31
224.61
259.48
253.76
254.59
232.81
279.22
273.87
245.70
237.32
230.42
250.78
235.88
245.37
17.49%
Charter Tourists
3568
4401
5419
9705
9266
5815
17102
39871
58369
59881
75694
73172
88817
90635
94289
116992
76410
94350
126255
158993
180310
169836
185994
No. of Flights
24
26
25
83
107
41
121
259
299
313
337
282
350
356
405
419
279
384
532
690
719
720
758
15.15%
ROOM INVENTORY
Hotel Name
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Cidade de Goa
Clarion, The Beach
Goa Marriot Resort
Hotel Fort Aguada Beach Resort
Taj Holiday Village
Intercontinental The Lalit
Leela Kempinski
Majorda Beach Resort
Park Hyatt Goa Resort and Spa
Zuri White Sands Resort
Ramada Caravela Beach
Taj Exotica
Club Mahindra Varca Beach Resort
Hotel Bogmalo Beach Resort in Goa
Resort Dona Syvlia
Holiday Inn Resort Goa
The Kenilworth Beach Resort & Spa
Riviera de Goa
The Majestic Goa
Vainguinim Valley Resort Goa
Taj Vivanta
Sun N Sand
Zuri The Retreat
The Lemon Tree Amarante Beach Resort
Whispering Palms Beach Resort
Hotel Fidalgo
Lazy Lagoon Sarovar Portico
TOTAL
Category
Location
Location in Region
5D
5D
5D
5D
5D
5D
5D
5D
5D
5D
5D
5D
5
5
5
5
5
5
5
5
5
5
5
4
4
4
4
Vainguinim
Central
South
Central
North
North
South
South
South
South
South
South
South
South
Central
South
South
South
North
Central
Central
Central
Central
South
North
North
Central
North
Miramar
Sinquerim
Sinquerim
Canacona
Cavelossim
Majorda
Arossim
Varca
Varca
Benaulim
Varca
Bogmalo
Cavelossim
Cavelossim
Utorda
Arpora
Porvorim
Vainguinim
Panaji
Panaji
Varca
Candolim
Sinquerim
Panaji
Arpora
Keys
210
123
178
145
142
255
180
120
250
154
202
140
206
121
183
170
107
104
61
54
170
43
106
65
106
103
40
3873
Remarks
NO BRANDED
STAR HOTEL
IN
CALANGUTE/
BAGA
Ten Trends Influencing Hospitality in India: How the Game is Changing
This article addresses the ten "game changers” that have influenced the Indian hospitality sector in the past decade and will
continue to do so in the years ahead.
The year 2000 was an important one for HVS India; we grew from a team of two members to four. The year 2010 is also an
important one as we have grown ten-fold in as many years. Our growth story seems to mirror that of the Indian hospitality
sector.
It is only fair to assert that we had started from a very small base. The next decade will thu be even more pertinent as
it helps the hospitality sector define its personality and carve its niche. As the Indian hospitality sector gears up to welcome an
era of growth, there are several critical influencers or what we think of as game changers that will play a key role along the way.
This article aims to touch upon the ten game changers that have facilitated the metamorphosis of the sector in the past decade
and will continue to do so in the years ahead.
THE INDIAN ECONOMY :
Not only is the elephant dancing today, but it's actually one of the only few circuses around. It has been a fantastic
growth story for a country that in 1990 attracted only US$ 150 million of Foreign Direct Investments (FDIs), and then received
US$ 4 billion in 2000 to over US$ 90 billion in just the past three years.
The millennium year of 2000 was hyped to be doomsday for the computers of the world with Y2K. Well, 2000 came
and went by and as we all know the computers did not collapse; instead, Indian technology companies grew considerably and
allowed the emergence of the BPO and KPO sectors. This led to a rising middle class and an ever-growing service sector. The
opening of the telecom sector a few years earlier also had its role to play. From the most expensive to the least expensive
telephone systems in the world – the Indian telecom story is certainly one for the books.
India's GDP has grown at an impressive 8.5% during the six years spanning 2003/04-2008/09. The recent global
financial crisis has only reduced the rate by 2-3 percentage points and even then the economy continues to grow at the annual
rate of 6% following the three quarters after the meltdown. Several domestic and global agencies have recently applauded the
Indian economy's resilience and have projected a growth rate of 7% in 2010 and 7.5% for 2011. India reduced its central fiscal
deficit from 8% of the GDP in the early 1990s to 2.5% in early 2008. This gave the government ample breathing space to
increase its expenditure (the deficit subsequently rose to 7% of the GDP), and boost demand in the country which enabled the
economy to sustain itself during the critical months of the crisis.
Contd…
Additionally, the Indian demographics continue to cater to the global audience very effectively. An enormous English
speaking workforce that is highly educated (more college graduates than any other nation) and ingrained in a service culture
that is touted as among the best in the world, makes the Indian employee a worthwhile investment. So while our friendly red
neighbor to the north has its own growth story to boast of, we believe that the Indian economy has a lot more dancing left to do
before the elephant finally settles down to some silent grazing.
Key Game Changers:
• India's exponential FDI growth likely to continue
• Indian demographics, the right fit for global business audiences
• Continued growth of projected GDP, at more than 7% in the years ahead
• Resilient economy, only marginally affected by the global financial crisis
• Exponential service sector growth, with emergence of BPO, Telecom and other sectors
THE MATURING OF INDIAN HOTEL MARKETS :
About a decade ago, there were really only a handful of major hotel markets in India, namely the four metros and
possibly a Bangalore or a Goa, a result of businesses primarily being based in and needing hotel rooms in these cities. Thus,
while visitors to these major cities had a choice of several luxury and upscale hotels, affiliated with both domestic and
international brands, the availability and quality of hotels declined significantly when venturing to the smaller cities.
In the last decade, as the major cities developed rapidly, real estate prices soared, and the cost of setting up and
sustaining business operations in these cities became prohibitive. Companies, therefore, started looking at other cities in the
country where costs were lower which resulted in the ascent of cities such as Hyderabad, Pune, Jaipur and Ahmedabad. As a
result of these dynamics, there are currently about 10 to 12 main hotel markets in the country, all of which offer a variety of
branded product offerings across different positioning. The emergence of these secondary and tertiary cities led to an
dependent on new opportunities in just the five main cities.
Another trend that aggressive increase in hotel development activity and provided avenues for expansion of hotel
brands, which were previously has now emerged in the various major markets is the growth of micro-markets, especially in the
primary cities. As commutes in larger cities are increasingly measured in amount of travel time rather than distance, people are
choosing to stay at hotels that are located closer to their place of work, thereby saving crucial travel time that might otherwise
have been wasted in traffic.
Contd…
Thus, while it might have been feasible previously to build only one Holiday Inn or one Marriott in the market, the presence of
independent micro-markets now allows the existence of multiple hotels with the same brand affiliation without fears of
cannibalization of demand.
The Ministry of Tourism's 'Incredible India' campaign has started to strike a chord and will likely play its role in
increasing visitations to India. That being said, the general sentiment is that although India has a varied bouquet of destinations
to offer, relatively mediocre efforts have been made to market Brand India. The future of the Indian markets and their ability to
mature into destinations relies on concerted efforts, both by the relevant government bodies and the private sector players.
Creativity will be of essence and perhaps it is time to start marketing Brand India under several subsets such as cultural tourism,
eco-friendly vacationing, medical tourism, religious circuits, adventure sports tourism, wildlife safaris, beach destinations and
wellness vacations.
Additional influences that attract or deter foreign tourists and thus need to be addressed are the quality of
infrastructure-related developments, ease of attaining a tourist visa for India, perhaps offering a visa on arrival option to
nationals of certain countries, the country's image as a safe, secure and friendly destination, amongst others. Several Southeast
Asian countries serve as prime examples of leisure destinations that managed to witness exponential growth in international
visitations, primarily because of a well planned and effectively executed tourism strategy. India, too, will need to set clearly
defined goals and work towards increasing foreign tourist arrivals if it aims to grow into a balanced, mature tourist destination.
Key Game Changers:
• Emergence of secondary and tertiary cities
• Emergence of micro-markets
• Continued marketing of Brand India
• Continued improvement of infrastructure in Indian cities and towns
• Ease of attaining Indian visas
• Development of India's image as a safe, secure and friendly destination
• Development and marketing of niche tourism like medical tourism, religious circuits, adventure tourism etc.
Contd…
HOTEL BRAND EXPLOSIONS IN INDIA :
In the year 2000, hospitality in India was primarily dominated by the domestic players, namely Taj Group of Hotels,
Oberoi Hotels & Resorts, ITC Hotels, and the government owned ITDC (The India Tourism Development Corporation Ltd)
Hotels, with only a handful of international brands having a token presence in the form of marketing alliances in India. Also,
while some of today's home-grown hotel chains like Leela, Bharat Hotels, Sarovar and Asian Hotels were around at that time,
they were for the most part single-asset owners. There was a perception that India was a tough place for foreign companies to
do business in and that a strong local presence with excellent contacts was required to be able to penetrate this market.
Additionally, several businesses and consequently most international brands were more focused on fast-growing markets in
the Middle East and China, which offered more opportunities for growth at that time.
The economic downturn, at the beginning of the decade, led to a paradigm shift among these businesses as they
could no longer depend solely on the more mature economies and they started gauging the vast opportunities that a country
like India had to offer. The fact that India was less impacted by the global downturns - one at the beginning of the decade and
the other at the end of it - as compared to the rest of the world has emphatically proven the inherent strength of the Indian
economy and its consumer base of over a billion people. As Indians travelled more frequently around the world, they
experienced international hotel brands first-hand, as a result of which these brands enjoyed greater recognition and
acceptance in India. Additionally, as international visitation to India increased, the foreign brands were better placed to attract
these visitors due to their strong reservations networks around the world. With the continued growth in India's GDP,
improvement in the per capita income, and increased aspiration spending, the Indian hospitality sector is expected to grow
faster than most countries around the world. Most major hotel brands such as Starwood, Hilton, Marriott, Hyatt and Accor
already have a growing presence in India and they have an even stronger pipeline. Additionally, the emergence of a branded
budget and economy segment presents tremendous opportunities and will attract many new players to an India going forward.
Key Game Changers:
• Entry of most major international brands
• Changing perception of Indian markets as a lucrative opportunity among international brands
• Growth of the Indian middle class offering a large consumer base of more than 1 billion people
• Educated and well exposed Indian audiences, likely to accept global brands wholeheartedly
• Expected emergence of branded budget and economy hotels
Contd…
HOTEL DEVELOPMENT COSTS :
In the past ten years most commodity prices have gone up. Development costs have always been a challenge for
anyone looking to build a hotel in India. The land cost has increasingly become a significant portion of the development cost for
any project, accounting for 30-50% of the total development cost, while the same equates to about 15-20% internationally. The
high density of development within Indian cities and the shortage of vacant land parcels suitable for hotels had led to aggressive
bidding wars among prospective buyers and forced prices upwards. With the increased pace of construction activity around the
world, especially in the Middle East and China, the price of construction material such as steel and concrete increased steeply in
recent years. While this was offset by sourcing furniture and fixtures from China by several recent hotel projects, the additional
concern regarding the quality of Chinese goods is one that now needs to be addressed.
HVS observes that hotels built in India very often exceed the brand specifications that might exist for these brands
internationally and that developers often tend to spend more money on their hotels than required. A typical mid-market
business hotel in the US or Europe, thus, does not cost nearly as much to construct as it does in India.
The lengthy cumbersome process of obtaining licenses and permits and construction delays serves to increase costs
even more. Given the time and expense involved in working through all these issues and finally opening a hotel, developers who
managed to do so were not interested in selling their hotels or asked for prices that were far in excess of replacement cost. As
we look into the next ten years, we believe that as long as asking prices remain significantly higher than the replacement cost
for the product, developers and investors will choose to build rather than buy.
Positioning
Luxury
Upper Upscale
Upscale
Mid Market
Budget
Economy
Typical Development Cost per Key (INR)
12,500,000 and above
8,500,000 to 12,500,000
7,500,000 to 8,500,000
4,000,000 to 7,000,000
2,500,000 to 4,000,000
2,500,000 and below
Contd…
Key Game Changers:
• Likely rationalization of land costs, due to the recent economic conditions
• Increased import of material from global sources, as long as quality goods are available
• Expected rationalization of costs, with government intervention in relaxing the license process
• Expected rationalization of per key development costs, with entry of brands across all positioning
THE DEBT, EQUITY AND VALUATION PARADIGMS :
VALUATIONS Ten years ago, when HVS had just about entered this market, many people had passed silent smirks at the idea
of a valuations-related consulting firm's presence in India. Why would anyone need valuations done? No transactions in the
industry had ever taken place! Last year, HVS did more valuation-related assignments than market studies and/or feasibilities.
There have been only a few big-ticket transactions in the hospitality world in recent years. The future will, however, see a lot
more activity as private equity players and hospitality funds start investing in this space.
DEBT - Development of hotels in India was historically undertaken by high net worth individuals who would approach banks for
debt to finance a portion of their construction cost and then raise equity through personal resources or from family and friends
to cover the rest of the costs. Unlike the US or the UK, where a developer historically could obtain 75-85% of his/her
construction costs in the form of debt from banks on a long-term basis (30 years), Indian banks have typically lent only up to
60% of the construction cost and that too for a much shorter duration.
Additionally, since the hospitality sector was previously considered a part of Commercial Real Estate (CRE) and was
subject to the same risk exposure, the cost of such debt was high. In September 2009, new guidelines on CRE released by the
Reserve Bank of India (RBI), asserted that the hospitality sector would no longer be treated as a part of CRE and risk exposure
would be based on the profile of the borrower and the nature of the project. These new guidelines will be especially significant
for the more established hospitality players who will now benefit from a lower risk weight age and consequently, lower interest
rates. While the RBI's decision is a step in the right direction, what is really required is the conferring of infrastructure status to
the hospitality, which will make debt financing much cheaper and give further impetus to new hotel projects around the
country.
Contd…
EQUITY – Given that banks would typically only lend up to 60% of the construction cost, developers were forced to then raise
equity by tapping into personal resources to cover the rest of the costs. Such a process was often an inefficient and timeconsuming one, with no guarantees that the required amount could be raised eventually. The entry of Private Equity (PE) funds
into India has made the task of raising equity for projects much easier, as the major players have access to significant levels of
capital and have greater appetite for risk than banks. Availability of PE funds has also enabled existing hospitality players to
attract investments at the company level as opposed to a project level, thus giving them the flexibility to use these funds as they
deem fit. Over the next ten years, we believe that PE players will become increasingly involved within the hospitality industry
and look at opportunities at all market positions, especially in the budget and mid market level. While the Indian hotel industry
has not seen much transaction activity in the last decade, the next ten years will bear witness to a larger number of
transactions, especially in the form of mergers and acquisitions, as companies take advantage of the lower costs of debt and
easier access to equity capital.
Key Game Changers:
• Expected rise in valuations and sale / purchase of hospitality assets
• Strong likelihood of infrastructure status for hospitality
• Increased possibility of securing debt at reasonable rates and for extended periods
• Growth of private equity investments and hospitality funds
• Expected rationalization of asking price of hotel assets
CONCLUSION :
India – known the world over as the land of hospitality – is today in the defining stages of the business of hospitality.
While the possibilities for growth are immense, it will take an earnest effort, both from the industry's key stakeholders in the
private sector and the relevant government bodies to truly change the Indian hospitality's landscape in the years ahead.
Perhaps, the industry is in need of a champion who will work towards the several reforms and ideas discussed in this article with
the same zeal and enthusiasm as is characteristic of our industry‘s service culture. The ten influencers discussed in this article
are but a drop in the ocean. Hospitality India has come a long way since 2000; however, it has a steep climb ahead and HVS
looks forward to being an integral part of this journey.
THE HVS INDIA JOURNAL
This edition has been published by the New Delhi office of HVS.
HICSA Edition 2010
HOTEL VALUATION INDEX – 2010
“In God we trust, all others bring data” - W. Edwards Deming
The Value of Valuations
Market value may be defined as the most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and
assuming the price is not affected by undue stimulus.1 While HVS has been performing feasibility studies and valuations in
India for about 13 years now, 2009/10 was the first year when we worked on more valuations than feasibilities. We believe
that this change in our business mix at HVS is representative of a very significant shift within the industry that has occurred in
the past year and will become more prevalent in the future. Historically, the Indian hospitality sector has seen very limited
transactions, if any at all, of existing hotel assets. Also, hotels in India continue to be owned by developers for a long term
unlike their counterparts in the US, where a certain property would routinely see change in ownership during its entire
economic life. Given the complications of identifying the right land parcel and acquiring control of it, obtaining the 70-110
licenses and approvals through multiple government agencies that are required for construction and opening, actually
constructing the hotel within the projected time and budget, a developer who was able to cross all these hurdles and finally
open the hotel was not very inclined to sell the asset. Even if such discussions transpired, the asking price for operating hotels
was significantly higher than the replacement cost for these hotels; thus, prospective investors simply chose to go through the
entire development process and just build new hotels. The strong performance of the Indian hospitality sector, which is
discussed in greater detail in the following sections, led numerous developers, many of whom had no experience whatsoever
in hotels, to announce plans to build hotels and cash in on the 'gold rush'. Land parcels were often purchased at extremely high
rates, lavish structures beyond the specifications of their segment-specific global counterparts were planned, and return
expectations were unrealistic. With the global downturn and its impact on India, also discussed below, many of the announced
projects quietly disappeared, and even projects where construction had commenced came to a grinding halt.
Contd…
Contd…
THE HVS INDIA JOURNAL
Based on our discussions with our clients and hotel investors, we are aware of projects in nearly every major city in India
where the developers are either looking for a complete exit or are eager to partner with other investors on the development.
At the heart of all such sales transactions or joint venture agreements is the market value that is attributable to the hotel.
Additionally, as an increasing number of institutional investors enter the playing field and invest in hotels, there will be a
greater need for transparent valuations in the marketplace. The ruling by the Reserve Bank of India removing hospitality from
commercial real estate exposures (CRE) has made loans for hotel developments cheaper and has increased the appetite of
banks for such lending. As is currently required in many countries, a valuation will become a critical legal and financial
requirement for such lending in the future. The Hotel Valuation Index (HVI) is a valuation benchmark developed by HVS. It
presents historical, and for the first time in India, future value trends for 11 major markets around the country. The HVI aims
to answer the very basic question of just how much a hotel is worth in any of These cities and how this picture might change
over the next five years. Given the very different operating characteristics of luxury/first class hotels as compared to that of
mid market hotels, we have presented separate valuations for these two classes of hotels across the various cities.
Macroeconomic Overview
It would be an understatement to note that the past 12-18 months have been quite turbulent for the Indian
economy. Even 18 months ago, the economic outlook for the global economy in general and India in particular seemed
extremely bleak. The US was in the midst of the worst recession since the Great Depression, firms that were giants on Wall
Street for decades had disappeared, and the crisis had spread to affect the economies in Europe and Asia as well, a result of
an increasingly interconnected global economy. Despite having a self-contained public and private sector economy, China and
India, both of which had exhibited aggressive growth in recent years, seemed destined to suffer as a result of their significant
links to the Western economies. The services sector bore the brunt of the crisis in India, while the manufacturing and export
sector did so in China. The stock market in India often saw significant declines while the real estate sector saw values
plummet. Companies tightened their belts and reduced costs across the board in an attempt to remain profitable in tough
times. A poor monsoon exacerbated the various problems India was facing and it seemed like things were just going to get
worse. But how things have changed since then!! The national elections in 2009 saw the Congress-led United Progressive
Alliance (UPA) win with a comfortable majority, reversing the trend of fractious coalitions and giving the Congress an
Contd…
Hero Group to launch Marriott’s Edition hotels in India
Hero Group, India’s largest two-wheeler maker, is in advanced stages of discussion with Marriott International Inc. to launch the
international hotel chain’s ‘Edition’ hotel brand in India.
According to industry sources, Ian Schrager who is also known as the godfather of trendy boutique hotels globally, was in India last
week for a discussion with the Munjals.
“He (Schrager) visited their recently acquired cold shell in Gurgaon to get an idea of the site and its suitability for the Edition brand. The
latest on this is that officials from Marriott and Hero Group are currently working on the finer details of their arrangement and an
announcement to this effect can be expected soon,” said a source familiar with the development.
Navjit Ahluwalia, senior vice president - hotel development (India and subcontinent), Marriott International, said, “We are in
discussions with them (Hero Group) and Ian Schrager was in the country recently to discuss the possible association. We are in the
process of finalising the details. The team is currently working on the hotels design element and we are hopeful to start work on the
project in another six months from now.”
With 250-280 guestrooms and a host of other facilities, the Gurgaon Edition will mark Hero Group’s foray in the Indian hospitality
market. The hotel, to be operational sometime in late 2013-14 or early 2014-15, is being developed on a 3.9 acre plot that was
acquired by Hero Group through a bidding process organised by Punjab National Bank.
The overall cost of getting this project operational would be 650 crore, Pankaj Munjal, managing director of Hero Motors, had said
earlier.
Thursday, January 14, 2010, 15:00 Hrs [IST]
By Dheera Majumder | Mumbai
Marriott Hotels International, which has been operating in India for the past 10 years, plans to add a
new brand to its Indian portfolio. Currently, the company has 10 operational properties in India
under the JW Marriott, Marriott Executive Apartments, Marriott, Renaissance and Courtyard by
Marriott brands and has properties under development under the Ritz Carlton brand. It is presently
analyzing opportunities to introduce its mid-market brand Fairfield by Marriott in India.
The introduction of this brand in India will also mark the foray of the hotel chain’s operations under
the franchise model in the country. Until now, the company has focused on the management route
for hospitality growth. Informing the same, Edwin Fuller, President and Managing Director, Marriott
International stated, “We observe a huge potential for the Fairfield by Marriott brand in India.
The brand will be introduced on the franchise model. This development will also help us to accelerate
our growth in the country. However, we are only exploring opportunities for the same.”
The hotel chain is scheduled to open around 30 hotels in the country over the next three years, of
which eight properties are expected to be commissioned in 2010 itself. Currently, the company has
lined up aggressive growth pipeline under its Courtyard by Marriott brand. The hotel chain is bullish
about its hospitality growth in India and expects the introduction of the new brand through the
franchise route to aid its expansion plans. “We aspire to build a portfolio of 100 hotels in India until
2015, which is possible post the introduction of Fairfield in India,” Fuller said.
12 Marriott
Properties Operational
Currently
40 More Marriott
Properties
Would be
Operational in 2015
FAIRFIELD BY MARRIOTTSM
SEE THE OPPORTUNITY — INDIA
SM
®
3,500
PROPERTIES
WORLDWIDE
The Power of Marriott
is Undeniable.
137,000
EMPLOYEES
70 COUNTRIES
AND TERRITORIES
GLOBAL BRANDS, LOCAL SOLUTIONS
03 INTRODUCTION
05 THE POWER OF MARRIOTT
Global Brands, Local Solutions
WELCOME TO MARRIOTT. We are a global hospitality powerhouse, yet we are grounded in the
core values of our founder, J. Willard Marriott, Sr. — quality, integrity and a spirit to serve the
customer. We believe in the strength of relationships — long-term relationships that are
mutually beneficial to our associates, our customers and development partners.
We also believe success is never final. It drives us to
deliver exceptional quality hotels and service, and it
drives us to continue to expand in rapidly growing markets
such as India. We have been in India since 1999, with
our Goa Marriott® Resort, and have a large and rapidly
growing network of hotels across the country.
We continue to see tremendous opportunity in India for
a hotel that will meet the needs of the burgeoning middleclass business traveler and will provide a sound investment
opportunity for developers interested in growing with us.
We invite you to learn more about Marriott and our FairfieldSM
brand, which we have thoughtfully designed to meet the
core needs of the value-seeking Indian business traveler
while providing developers flexibility to expand the brand
in a number of locations.
INTRODUCTION
03
With a burgeoning middle-class — yet very few
branded, quality hotels to serve them — India
presents a growth opportunity segment for real
estate developers.
BY 2025, THE MIDDLE- CLASS
WILL REPRESENT 40% OF THE
POPULATION IN INDIA*
TRAVEL & TOURISM IS
Fairfield
is the Answer.
FORECAST TO GROW 8.5%
THROUGH 2020**
THE FAIRFIELD OPPORTUNITY
09 INTRODUCTION
11 FOCUS ON THE CUSTOMER
• The ‘Bird of Gold’: The Rise of India’s Consumer
Market, McKinsey & Company, May 2007
• ** World Travel & Tourism Council, 2010
HOTELS FOR VALUESEEKING TRAVELLERS
ARE UNBRANDED
AND INCONSISTENT
Most moderate-tier
Indian hotels are
unbranded, leaving
opportunity for a
globally recognized,
quality brand
It’s Right, It’s Easy, It Works
THE BRAND IS PERFECTLY POSITIONED TO DELIVER ‘CONFIDENT TRAVEL’. Travellers can rely on
it to make their stay more successful. Developers can rely on it to deliver strong returns.
IT ’S RIGHT
IT ’S EASY
The Fairfield product is a perfect fit for the moderate-tier
We have product design and operations support systems
category in India. We’ve studied the market opportunity,
to make getting off the ground and sustaining a profitable
the competitors, customers, and created a solution that
venture long-term relatively easy. Our in-market resources
is perfectly tailored for the customer and designed to
can support you in planning, construction, ongoing
deliver strong returns for developers. There is great
performance management and operations.
flexibility in how and where a Fairfield may be built.
We have options for ground-up construction; use of an
IT WORKS
existing commercial shell; or as part of a mixed-use
Fairfield has a proven track record in the U.S. moderate-
project. Our development team can help you analyse
tier category. And Marriott has a proven track record in
your site and outline an investment model that works.
India. For almost 25 years, Fairfield has provided frequent
business travellers high-quality hotels with consistent
service, at an exceptional value. Fairfield is Marriott’s
fastest growing brand in the U.S. and has consistently
delivered market share growth, increasingly high levels of
customer satisfaction and strong returns for investors.
INTRODUCTION
09
5 Reasons
Why Fairfield is
a Smart Choice
1.
Grounded in research and testing
demonstrating strong appeal amongst
Indian business travelers.
3. 4.
Flexible design options to adapt
to a range of site needs
Efficient cost to build and ongoing
operating costs resulting in a strong
return on investment
2.
Backed by the strength of the Marriott
brand and its resources — both globally
and locally
5.
Proven track record of delivering
a consistent, quality experience
Focus on the Customer
DESIGNED, FROM THE GROUND UP, FOR THE INDIAN BUSINESS TRAVELLER. One of the
reasons Marriott and the Fairfield brand have been so successful is that we have an
unrelenting focus on understanding the customer, their needs, and designing product and
service solutions that exceed their expectations.
In designing a product that would be successful in
India, we started where we should start … with the Indian
Business Traveller. We have carefully invested time
assessing the competition; studying guest behaviours;
and gathering their feedback on our design. We listened
and adapted the design to better meet their needs.
The Fairfield India design is based upon several core
needs of the traveller:
A robust and culturally relevant Food & Beverage offering
Business support systems, including modern technology;
ample work space in the room; and meeting facilities to
help them be productive on the road
Attentive, respectful service that makes them feel welcome
and supported
… All delivered at an exceptional value
The desire for a quality product that they can count on
to consistently deliver
FOCUS ON THE CUSTOMER
11
We have leveraged our expertise in building and
operating quality hotels across the globe as well as our
in-depth knowledge of India and its customers. The result
is a flexible, economically smart and modern hotel.
FLEXIBLE
TO SITE
Fairfield
Design Direction
ECONOMICALLY
SMART
EXTERIOR
DÉCOR
INSPIRATION
PUBLIC SPACE
18 OVERVIEW
19 KEY ZONES
20 FLOOR PLAN
MODERN
AND STYLISH DESIGN
22 FOOD & BEVERAGE
OVERVIEW 26
MEETING ROOMS
27 ADDITIONAL AMENITIES
GUEST ROOMS
28 GUEST ROOM
OVERVIEW 29
SQUARE GUEST ROOM
34 RECTANGULAR
GUEST ROOM
2
1
2
Public Space SNAPSHOT
Food & Beverage spaces that can
24 hour / 7 day a week Market for
adapt to fit site needs
drinks and snacks to take away
3-meal-a-day restaurant with buffet and
Ample meeting spaces throughout
à la carte service
Modern Fitness facility
Bar and Lounge with specialty coffee
and tea service
3
4
5
FLOOR PLAN
21
Public Space RESTAURANT
A Profitable Concept*
88% of respondents say the
It significantly increases intent
offering improves their willingness
to dine in the hotel.
to stay at Fairfield by Marriott.
The testing suggests higher
revenue potential.
*Based upon testing amongst 300+ Indian business travellers
Open, contemporary restaurant space invites guests to
experience the flavours and lively atmosphere from
morning through evening.
Private dining rooms offer a special, secluded dining space
that can also be used for meetings and receptions.
An optional outdoor terrace provides additional seating and
access to the outdoors.
FOOD & BEVERAGE
23
Public Space
KITCHEN
Beyond the buffet, an attractive open kitchen allows guests to see chefs preparing the day’s
delicious, regional offering whether it be dosa at breakfast or fresh kebabs at lunch or dinner.
FOOD & BEVERAGE
24
Public Space
BAR / LOUNGE The Bar / Lounge is a flexible space that
works well throughout the day — from morning specialty coffee
and tea, to the evening, where it becomes a vibrant space to
drink, enjoy a light snack and socialize.
The Lounge, with flexible seating, tables, music and lighting
to support transitions through the day, can also function as
additional meeting space.
FOOD & BEVERAGE
25
Public Space MEETING ROOMS
Thoughtfully planned and expandable for enhanced revenue potential
Knowing that demand for meeting space can expand
The meeting programme includes:
beyond dedicated rooms, we’ve not only designed larger
•
meeting rooms, but we’ve also created flexibility in
other areas of the public space to convert to meeting
space as demand increases and thus drive the
hotel’s revenue potential.
•
160-square-metres of dedicated meeting space
Modern technology and comfortable, conferencestyle seating
Other public space areas, including the restaurant’s
private dining rooms, can be used for conferences or
receptions.
Public Space
ADDITIONAL AMENITIES
Fitness Room
The Fairfield Fitness Room contains the latest in
modern cardiovascular equipment and weights. It is
thoughtfully designed with abundant use of natural
light, mirrors and vibrant music.
The Market
Adjacent to the front desk, this retail nook offers
guests drinks and tasty snacks to take away as well as
an assortment of small travel necessities.
ADDITIONAL AMENITIES
27
Square Guest Room
KING — JEWEL DÉCOR SCHEME ‘Like the flooring, the walls, all
the colours. It’s
very light, no
tension, it’s very
relaxing. It’s
peaceful. It’s very
good’.
- SUNITA, AGE 34, DELHI
‘I love it. It’s wow’.
- DEEPAK, AGE 44, HYDERABAD
It is spacious feeling, with large windows
Tile flooring throughout keeps the space open,
and abundant natural light.
feeling clean and is easy to maintain.
The king bed measures 1.6m x 2m.
Where needed in certain markets, a pull-out bed,
A wall-mounted LCD TV can easily be viewed
hidden beneath the larger bed, offers space for
throughout the room.
additional guests.
Square Guest Room BATH AND WORK SPACE
‘This is an upgrade
to what I’m used to’.
Multiple, accessible outlets
- PRASHANT, AGE 28, DELHI
make plugging in easy.
BATH
WORK SPACE
The light, open, spa-like bath feels spacious.
It offers ample work space and
Smart design creates separation between wet and
a comfortable, ergonomic chair.
dry areas, yet sufficient space for both.
Task lighting helps guest focus.
Rectangular Guest Room KING
The rectangular room works well for mixed-use
The aesthetic quality and functionality of the square,
development or conversion of an existing shell.
prototypical room are preserved.
It has both a King and Double Twin layout.
RECTANGULAR GUEST ROOM
35
The entire building is deliberately and
Carefully designed to make the most
efficient use of space in order tomaximise
returns. Yet, the guest experience
remains exceptional.
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