Want to plug into the Marriott International network but don’t want to relinquish your hotel’s or brand’s DNA? Marriott now has a brand for that.
The largest hotel company in the world on Thursday announced the global launch of a new collection brand for the midscale and upscale lodging segments called Series by Marriott, which Marriott said will expand its global presence by folding what it calls “regionally created brands and hotels that champion consistent quality and service” into the Marriott Bonvoy, the company’s loyalty program with more than 230 million members worldwide.
Instead of Marriott trying to further establish its own brands in the country, it is seeking out already-established hotels and brands there to partner with, a sometimes easier method than planting your own flags, which can take longer. According to Marriott.com, there are currently 158 Marriott-branded hotels in India.
According to Marriott, and amplified by its President and CEO Tony Capuano on LinkedIn, the collection brand will focus on “fundamentals and well-executed basics,” which could be construed as a euphemism for cheaper hotels not chock full of amenities. Further, the hotels in the portfolio will offer “quality and value with clean, comfortable rooms, free Wi-Fi, daily coffee or tea, with breakfast, fitness centers and meetings and event spaces available at certain properties.”
Series by Marriott is launching through a founding deal with Concept Hospitality Private Limited (CHPL) in India, which is a key growth market not only for Marriott but lodging companies worldwide looking to tap into heightened travel demand in the country. Marriott also said it is making a small equity investment in CHPL.
CHPL was founded in 1996 and has a portfolio of six brands and more than 100 hotels operating in 90 locations. Under the agreement between CHPL and its flagship brands—The Fern, The Fern Residency and The Fern Habitat—and Marriott will affiliate with Series by Marriott on an exclusive basis across India.
The Fern portfolio is currently comprised of 84 open properties and 31 executed pipeline deals, totaling 115 properties and approximately 8,000 rooms. They are known to be standard-bearers for eco-sensitive hospitality. A quick scan on Google showed room rates well below $100 per night.
Fern properties are expected to join Marriott’s portfolio in India over time following discussions with the third-party hotel owners and execution of long-term franchise agreements with those owners. CG Hospitality, the hospitality division of the multi-national conglomerate CG Corp Global, is the majority stakeholder in CHPL.
“Series by Marriott furthers Marriott’s commitment to delivering lodging offerings in the right place at the right price with basics done well,” said Capuano, president and CEO of Marriott International. “Creating a new, regional collection brand will further Marriott’s reach among value-conscious travelers, provide additional choice for our existing Marriott Bonvoy members and guests, and offer more affiliation opportunities for local owners.”
“This deal will help meaningfully expand Marriott’s leading position in India, a key market for the company. We see this multi-unit conversion deal as a strong foundation as we look to accelerate growth of the Series by Marriott collection in additional markets around the world. The Fern portfolio throughout India is highly regarded and CHPL’s commitment to operational excellence and meeting the needs of regional travelers embodies the spirit of the Series by Marriott brand.”
“Being part of Series by Marriott will allow us to amplify our reach,” said Dr. Binod Chaudhary, chairman of CG Corp Global. The Fern brands are expected to benefit not only from the Marriott Bonvoy loyalty program and global distribution systems, but also from strategic growth opportunities.”
“Our vision is to unlock the immense potential of Tier 2 and Tier 3 cities, as well as lesser-known destinations across India that are rich in culture, heritage, and opportunity. This strategic collaboration underscores our commitment to expanding access to quality hospitality, fostering local economies, and meeting the rising demand for sustainable, comfortable, and accessible stays in emerging markets,” said Param Kannampilly, chairman of Concept Hospitality Private Limited.
In addition to its founding deal with CHPL, Marriott is also in active discussions about the Series by Marriott brand with owners in the U.S., the Caribbean and Latin America, Europe, Middle East, and Africa.
Marriott is not alone in its pursuit to firm up a foothold in India. One study said that if India’s economy continues to grow as predicted, by 2025 the Indian middle class will number 583 million people, or 41 percent of India’s projected population, almost twice the current population of the U.S. Further, a report by Rediffusion Consumer Lab said that India’s middle class could touch a whopping 1 billion people by 2047.
Global hotel companies are rushing into the country to take advantage. In April, Accor and InterGlobe announced a partnership aimed at expanding Accor’s presence in India. The agreement involves the creation of a unified platform and a strategic investment in Treebo, a budget-hotel platform. The stated objective is to reach 300 Accor-branded hotels in India by 2030.
At the same tine, Thailand’s Dusit International is expanding its presence in India by introducing its portfolio of luxury and upper-midscale brands in several Tier 2 and Tier 3 cities, with plans to enter major metros in a later phase.
In October, Wyndham Hotels & Resorts announced it was bringing its Microtel by Wyndham brand to India, inking an exclusive development agreement with developer and operator NILE Hospitality LLP.
