Crafting a new landscape for Marriott

Kiran Andicot, Regional Vice President - Hotel Development, South Asia, Marriott International leads the charge in redefining hospitality in South Asia, blending innovation with local culture to drive impactful development

Growing up in an Indian Army family helped Kiran Andicot develop a strong sense of discipline and structure. Initially aspiring to join the Navy, he pivoted to hospitality due to vision issues, finding inspiration in the structured environment of hotels. In 1993, he began his career as a management trainee at the Oberoi School, during a time when luxury brands like Taj and Oberoi dominated the Indian market. “There was a certain mystique about hotels back then,” he recalls. He contributed to The Oberoi openings in Kochi and Jaipur before joining Taj to help launch Taj Exotica in Goa. His experience led him to HVS where he focussed on feasibility studies during a transformative period for Indian hospitality. After a stint at Ernst and Young in Dubai, Andicot returned to India with Marriott in 2006, attracted by the brand he had always admired. Over his 18 years with Marriott, he transitioned from feasibility to development, embodying his commitment to excellence in an evolving industry. And today holds charge as Regional Vice President - Hotel Development, South Asia at Marriott International.

Development Strategy for South Asia
When Marriott launched its office in India, it adopted a strategy focussed on prime locations and strong partnerships. “We partnered with the Salgaonkars, signing hotels like the Goa Marriott Resort and the Renaissance in Mumbai,” Andicot explains. The success of the JW Marriott in Juhu created immense demand, leading to 10 operational JWs and 14 more in the pipeline.

Andicot shares that, with an eye on post-pandemic trends, Marriott is expanding into religious hubs and wellness resorts, capitalising on a newfound interest in domestic travel. “India has traditionally been a business hotel market,” he notes, “but the pandemic allowed people to rediscover the country,” leading to growth in regions like Uttarakhand and Himachal Pradesh.

At present, reveals he, Marriott operates 154 hotels in India, with 84 more planned. “Our strength lies in the Marriott Bonvoy loyalty programme, which drives significant business,” he says, emphasising on the brand’s consistent strategy: selecting the right owners and locations to enhance operational performance. “This year, 50 per cent of our signings have been with existing Marriott owners,” he shares, highlighting the brand’s commitment to fostering lasting partnerships.

Managing Financial Performance of a Hotel
As part of Marriott’s development team, Andicot emphasises on the importance of engaging with potential hotel owners early in the process. “We always advise owners to approach us when they’re ready to develop a hotel, so we can guide them effectively,” he states. For first-time owners, he suggests conducting an independent feasibility study to understand site potential, investment needs, and product specifications.

Once the financials align, Marriott steps in to assist through every phase, from construction to operations. “Our technical teams in Mumbai and Delhi provide support, ensuring adherence to brand standards,” he explains. Unlike many operators, Marriott focusses solely on managing hotels, relying on third-party capital and strategic partnerships across South Asia and beyond.

The internal feasibility team plays a crucial role in assessing market conditions. “While owners conduct their due diligence, we also verify their consultants’ findings to avoid overbuilding or misaligned projects,” Andicot notes. For instance, if a luxury hotel isn’t suitable for a specific market, Marriott might recommend a Courtyard instead.

The timeline from initial discussions to signed agreements can range from a few months to several years, with construction often taking three to four years. Andicot acknowledges the cyclical nature of the hotel industry, highlighting the importance of timing. “While it’s tempting to build during a downturn, ideally you want to open when the market is on the upswing,” he says, reinforcing Marriott’s commitment to guiding owners toward successful ventures.

Balancing Global Brand Standards With Local Market Requirements
The Regional VP - Hotel Development, South Asia at Marriott highlights the importance of balancing global standards with local needs. “A prime example of this is the launch of the Fairfield by Marriott brand in India in 2000. Instead of simply importing the existing US model, we conducted extensive market research to understand local expectations.” Marriott engaged a firm to gather insights from Indian guests and customers, which informed the  development of Fairfield’s offerings. “We discovered that even at the Fairfield level, Indian customers expect a certain level of service that differs from the US model,” he explains. As a result, the Indian Fairfield includes amenities like room service – an element not typically featured in its American counterparts.

Andicot also notes the necessity of F&B options and meeting spaces, stating, “In India, banquet halls and food services are essential for a hotel’s success, unlike in the US, where Fairfields and Courtyards are primarily room-only products.” This adaptation exemplifies Marriott’s commitment to understanding and responding to the unique demands of the Indian market.

Key Financial Performer
Performance Indicators
The hotel industry relies on key performance indicators, with Revenue per Available Room (RevPAR) serving as a critical metric for success. According to Andicot, Marriott’s operations team closely monitors RevPAR and its premium over competitors. “In India, JW’s RevPAR premium stands at nearly 120 per cent, meaning we’re performing 20 per cent better than our competitors,” he notes.

Marriott’s overall RevPAR falls within the 1:20 to 1:24 range, which attracts new owners looking to partner with a proven brand. This success not only drives interest in new projects but also enhances Marriott’s representation across different markets. “In India, it’s about providing customers with a diverse choice of hotels at various price points,” he explains.

For frequent travellers, especially in bustling cities like Mumbai, Marriott’s expanded portfolio means more options in different sub-markets, keeping members of the Marriott Bonvoy loyalty programme engaged. Andicot emphasises, “When these customers travel abroad, they find the same variety, enhancing their loyalty experience.” Additionally, Marriott’s presence extends to aspirational destinations like the Maldives, where it holds the largest market share. “The ability for Bonvoy members to redeem points for dream vacations reinforces our commitment to customer retention,” he says.

Trends Shaping Future of Hotel Development
The pandemic, opines Andicot, has undeniably reshaped the hospitality landscape, accelerating trends that were already on the horizon. As he observes, “Guests are now seeking more experiential holidays, and there’s a growing openness to combining business with leisure trips.” This shift necessitates that hotels serve as oases, especially in bustling Indian cities, where after a long workday, guests crave quality food and beverage options and rejuvenating spa experiences. The opening of JW Marriott Mussoorie Walnut Grove Resort & Spa, Marriott’s first proper resort, exemplified this evolution. “We ensured the hotel catered to families travelling with staff by providing accommodations for drivers and maids,” he explains. Such considerations have become standard in resort planning today. Today’s travellers are increasingly sophisticated, seeking genuine experiences across various price points. Whether travelling for a personal getaway, a celebration, or a staycation, it’s vital for Marriott to offer a diverse portfolio of brands. “Brand distinction helps customers choose the right hotel based on their travel purpose and desired experience,” Andicot informs, adding that This clarity is essential as guests navigate their options in an ever-changing market.

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Saurabh Tankha

BW Reporters The author is the Editor at BW HOTELIER.

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