Marriott International released its third quarter results for 2014, reporting a net income of $192 million, a 20 percent increase over Q3 2013. Diluted earnings per share (EPS) totaled $0.65, a further 25 percent increase from the same period last year and above the EPS forecasted by the company earlier this year ($0.59 to $0.63).
The company's strong development pipeline was substantiated in early December, when Marriott announced its plans to open 1,300 new hotels worth 200,000 new rooms by 2017. That would mean six hotels opening every week on average through 2017, and would bring Marriott's worldwide portfolio to 5,000 hotels in 100 countries.
dna India is reporting that an additional 49 hotels will open in India, taking the total number of operational properties to 70 by 2018. "We are in India since last 15 years and currently have 25 operating hotels under our various brands. We have another 49 properties in the pipeline that are under various stages of construction. Every year, we sign new contracts and are expecting 60-70 operating hotels in India by 2017-2018," Marriott International area vice president, South Asia, Rajeev Menon told dna.
Marriott International, which primarily follows the management contract model, has seven operating brands in India representing luxury to upper mid scale category. "These seven brands fairly fulfills the necessity in the country. However, we will continue to access opportunity in India to launch additional brands here," he added.
Of the seven brands, Courtyard by Marriott and Fairfield have the biggest potential, as they can expand anywhere, especially in tier II and III cities.
"We see opportunity for our two brands - Courtyard by Marriott and Fairfield - to grow aggressively in the country. They have locational advantage as they can be opened anywhere like tier II and III cities," he pointed out. At present, there are 11 properties under the Courtyard by Marriott brand and another 19 are under construction, he said.