Real estate developer Prestige Estates Projects Ltd is set to expand its hospitality business by opening six new hotels in partnership with Marriott International.
After announcing the signing of management agreement with Marriott International on Tuesday, Irfan Razack, Chairman and Managing Director, Prestige Group said the company will add 650 rooms to its inventory across six new properties. Currently, it is operating 850 rooms in partnership with Marriott International. Prestige Group will invest an incremental Rs 350 crore for setting up of new properties.
“Reduction of GST from 28% to 18% for premium and luxury hotels, reduction of corporate tax and regional airport development under UDAN are paving the way for robust market demand,” Razack said.
Prestige Group currently operates 1,200 hotel rooms across multiple brands, which contribute around Rs 400 crore to its topline. Over the next three to four years, the company will increase its hotel business to 3,100 keys which will contribute around Rs 1,200 crore revenues annually, said Venkat K Narayana, Chief Executive Officer, Prestige Group.
Under the new agreement, Marriott International will bring its 17th hotel brand – Moxy – to India. It currently operates 120 hotels across 16 brands in the country. “India is the second biggest market after China for us in Asia Pacific. Another 50 hotels are under construction in the country. We will be adding 1,000 new jobs in India with the construction of five new hotels with Prestige Group,” said Rajeev Menon, President – Asia Pacific (excluding Greater China), Marriott International.
The new agreement with Prestige Group will see Marriott’s hotel brands such as the W Bengaluru, Tribute Portfolio Resort Bengaluru, Tribute Portfolio Hotel Kochi Maradu, JW Marriott Bengaluru Prestige Golfshire Resort & Spa, Moxy Chennai and Moxy Bengaluru. All these hotels are expected to open between 2021 and 2025.
Projected to be worth Rs 1.21 lakh crore by 2023, the Indian hospitality sector is witnessing an upward trend across mid-scale, upscale and luxury segments.