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Marriott International Sees Asia as World�s
Most Robust and Dynamic Market

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By Steve Shellum, Publisher/Editor, HOTEL Asia Pacific, May 2005

MARRIOTT International is focusing much of its international expansion strategy squarely on Asia Pacific. "Overall, we see the region as the most robust and dynamic of any market worldwide," says president of international lodging, Ed Fuller. 

Much of that focus is firmly on China, where the group currently has 31 properties [including Hong Kong]. There are 11 signed deals in the pipeline, with more than 3,700 rooms - which represents almost 45% of the group's pipeline in Asia Pacific.
Recent openings include the Renaissance Suzhou and the Beijing Palm Springs Marriott Executive Apartments, while the Nanchang Courtyard is scheduled to open later this year.

Macau is also a major focus of the group's attention, and HOTEL Asia Pacific has learned that it is looking at a "very interesting project there at the moment". 

Outside of China, the Miri Marriott Resort & Spa, The Ritz-Carlton Jakarta, Hyderabad Marriott, Bali Bulgari and the Renaissance Bali are all scheduled to open this year. 
In India, the group has five operating hotels and several under development, and recently opened a development office in Delhi. 

It continues to look for projects throughout South-east Asia in general, and is "working on additional exposure" in Indonesia, Thailand and Malaysia. 

In the North Asia market, it continues to look at Japan and Korea. In Australia and New Zealand, the group is expanding its Courtyard products, as well as a full-service Marriott Resort property in Fiji.

Fuller declines to put a figure on future developments. "We never speculate or comment on market rumours, so we're not comfortable making these kinds of predictions. Suffice to say that we have a lot of confidence in the strength of our pipeline in China, India, Thailand, Japan, Indonesia, Macau, Australasia and the Pacific Islands. 

"More than 55,000 rooms worldwide are under construction, awaiting conversion or approved for development - and a significant number are targeted for the Asia Pacific region."

Fuller sees "exciting and tremendous opportunities" in Asia Pacific for 2005, citing new supply of source markets, existing intra-Asian demand, an increasing interest in tourism and a healthy and dynamic economy.

"There are a tremendous number of new customers flying into and out of Asia, including Chinese mainland clients and tourists. The inbound Russian market is also vibrant and offers new potential." 

But, he warns, it is essential to ensure appropriate airlift into the key markets. "The story of Dubai is one of airlift driving tremendous occupancies in a brand new destination. It is imperative that Asian air carriers continue to focus their route systems on destinations within Asia that have potential demand coming from key source markets. 

"Lack of lift into emerging new resort destinations such as Sanya [on China's Hainan Island] could inhibit growth and stunt occupancies."

The group remains highly confident of the Thailand market. "The images of the tsunami were so embedded in the media that it will take a concerted effort to market the destination. However, we hope to regain tourists' interest and confidence."

The group is maintaining tough standards among its managed properties. "Marriott maintains extremely high standards and insists on ongoing maintenance of its facilities," says Fuller. 

"Where that does not occur, we take appropriate steps to exit a property."

Several hotels in the region are going through their normal renovation process, with major works ongoing in Hong Kong, Australia and a number of properties in China. 
"Capital expenditures to maintain the product to meet guest expectations are ongoing annually."

Outside the US, the group currently operates its J.W. Marriott, Ritz-Carlton, Marriott, Renaissance, Marriott Executive Apartments and Courtyard brands [all of which are represented in Shanghai]. There is also a Bulgari opening in Bali this year, as well as other Bulgari projects under discussion in the region. 

"The current strategy calls for these brands to be expanded throughout Asia and the world." 

Keeping all channels open as group's online bookings soar 26%

"MARRIOTT'S policy has always been that we utilise every channel. In January 2004, we launched Marriott's Look No Further Best Rate Guarantee, which guarantees that customers booking reservations through a Marriott channel will not find a lower rate on any other channel. 

"We are the only chain that has guaranteed not only against external channels, but also between all our internal channels. We have seen dramatic increases in all internet channels and, at the end of 2004, 8.7 million reservations were made through the internet for a Marriott International room. This was a 26% increase compared to 2003. 

"We have continued to grow our other traditional GDS channels and continued to work with travel agents, travel-management companies and other third-party providers. 

"As brand awareness grows, our reservation channels continue to play a significant role in the contribution to occupancy."

Asia leads the world in hotel innovation and creativity

ASIA today - the world tomorrow. When it comes to hotel innovation, the region is setting new global standards, according to Fuller. 

"Candidly, I think that hotel industry trends and product development are really centered in Asia and, more recently, in Dubai, with some of the most innovative and creative services and standards evolved in Asia now being implemented in other destinations."

The group has developed several new F&B concepts that are relevant to each market. "We do not simply take a concept and shoe horn it into a hotel. We have had great success with our internal market research in identifying which developing concepts will work within the market they are intended for, and then working with restaurant designers to create unique and well-designed restaurants for the market." 

Recent F&B openings in the region include The Fish Bar at the J.W. Marriott Hong Kong, and the Bangkok Baking Company and a Japanese restaurant in the J.W. Marriott Bangkok.



Copyright: HOTEL Asia Pacific. The lastest edition of the multi-award winning HOTEL Asia Pacific can be downloaded in full, in PDF format, from www.hotelasiapacific.com. It is free to hospitality professionals, and requires a simple, one-time registration. 
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Contact:

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Subscription Information
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Hotel Asia Pacific
Steve Shellum
158 Wong Uk Tsuen
Yuen Long
New Territories
Hong Kong
Tel: +852 2882-7352
Fax: +852 2882-2461
http://www.hotelasiapacific.com
[email protected]

 
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