BETHESDA, Md.: Marriott International (NYSE: MAR) today announced it has reached a preliminary agreement to form a joint venture with SAMHI Hotels Pvt Ltd., a hotel and investment company based in New Delhi, to launch Fairfield by Marriott, a new hotel prototype designed specifically for the growing Indian business traveler segment. The venture is expected to bring 2,500 guest rooms and approximately 15 moderate-tier hotels to India by 2015 in markets such as Bangalore, Chennai and Hyderabad.
"With a burgeoning middle class of more than 200 million people, yet very few branded moderate-tier hotels to serve them,
India presents a powerful growth opportunity for Fairfield by Marriott," said
Navjit Ahluwalia, senior vice president of development in
India, Marriott International. "With its expertise and relationships in the Indian market, plus the strong track record of its seasoned hospitality executives, SAMHI Hotels is an excellent partner for this venture."
Once completed, the venture will firmly establish Marriott's leadership position in the moderate-tier category in India, and support the company's goals of expanding in India from 12 to 100 hotels across seven brands by 2015. Since opening its first hotel in India in 1999, with the Goa Marriott, Marriott has expanded its portfolio there to include the Courtyard by Marriott, Marriott Hotels & Resorts, JW Marriott, Renaissance, and Marriott Executive Apartments brands.
"With a focus on moderate-tier hotels, Fairfield by Marriott fits into the core strategy for SAMHI," said Ashish Jakhanwala, Managing Director SAMHI Hotels. "Our choice of Fairfield was driven by the fact that Marriott has developed the brand and product for the Indian market based on extensive consumer research. We believe that Fairfield development will allow SAMHI to target a wide and fast growing segment and create tremendous value for our shareholders."
The 155-room Fairfield by Marriott prototype is a highly customized version of the company's successful Fairfield Inn & Suites brand, which was created in 1987 and has grown to more than 660 properties throughout the United States, Canada and Mexico. Unique features of the new Indian prototype include:
- A three-meal-a-day restaurant will serve authentic Indian cuisine and select Western menu options. The restaurant will feature a buffet, a la carte menu and private dining rooms.
- An expansive lobby with a bar lounge and 24/7 Market for drinks and snacks.
- Ample meeting room space to conduct business.
- Two modern, fresh decor palettes inspired by the rich colors of the peacock and Indian embroidered textiles, and by spices of saffron and turmeric. Indigenous stone, wood and textiles will be used throughout the hotels.
- Guests will also enjoy modern technology, an exercise room, and the attentive, respectful service for which Marriott-branded hotels worldwide are known.
"To design Fairfield by Marriott, we started where we shouldâwith the upwardly-mobile Indian business traveler," says Shruti Gandhi Buckley, Vice President of the Fairfield by Marriott brand. "We believe we've developed a hotel prototype that is culturally relevant, meeting our guests' unique needs around hotel living, dining, and socializing."
Formation of the joint venture is subject to negotiation of definitive transaction documents and customary closing conditions for transactions of this type, including obtaining any necessary consent. The parties anticipate closing in the second quarter of 2011.
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SAMHI Hotels Pvt Ltd. is a hotel investment and development company, with a focus on high growth economy and mid-scale segment in Indian sub-continent. SAMHI has been co-founded by Steve Rushmore, Founder and President of HVS, Ashish Jakhanwala, who was part of start-up and core team at Accor India/InterGlobe Hotels, and Manav Thadani, Chairman and Founder of HVS India and is sponsored by GTI Capital Group, an India-focused private investment and advisory firm.
Note: This press release contains "forward-looking statements" within the meaning of United States federal securities laws, including statements about the expected timing for closing, the joint venture's future operations, the size of the future joint venture hotel portfolio, and similar references to anticipated future events or expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including the ability of the parties to finalize definitive transaction documents, any changes to the joint venture that may be reflected in the definitive documents, delay in or failure to obtain any necessary consent, or the ability of the joint venture to acquire and finance sites for development; any of which could delay or prevent formation of the joint venture, cause the joint venture to operate differently than as described in this press release or result in the joint venture developing fewer hotels than anticipated. These statements are made as of April 06, 2011, and the parties undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Marriott International
