India is set to become Marriott International’s next big growth bet.
The hotel chain’s chief commercial officer, John Toomey, said in an interview with Business Insider that Marriott is looking to double its footprint in India, from 48 to 90 cities.
India “is an absolutely exploding economy and democracy,” said Toomey, who has worked at Marriott for nearly three decades.
In his current role, Toomey oversees over 650 Marriott-run hotels in the Asia Pacific, excluding China. He said Marriott has over 150 hotels in the pipeline in India, in addition to the 160 hotels it operates now.
Marriott’s growth in India follows several analysts’ reports in recent years, talking about travel having growth potential in the subcontinent.
McKinsey said in a 2023 report that India’s fast-growing economy would help position it as an “important global source market for leisure travel.”
A market with a young and affluent population
Toomey said India holds a “tremendous growth opportunity” for Marriott.
“A large, young, and increasingly affluent population, coupled with government investments in infrastructure and connectivity, is driving both domestic and international tourism,” he said. “We see strong demand from middle- and upper-class travelers, who are seeking premium experiences across the country.”
Domestic travelers make up the bulk of Marriott’s customer base in India, he said, adding that tourism in India is expected to boom over the next decade.
And Marriott is not just betting on big metropolitan cities.
“While we continue to strengthen our presence in major cosmopolitan hubs such as Mumbai, New Delhi, and Bangalore, we are equally committed to expanding into tier two and three cities through initiatives like Series by Marriott, which is set to add 115 properties to our portfolio,” he said.
“Series by Marriott” is a collection of independent and regional hotel brands that have been brought under the Marriott umbrella. It was launched in May.
Toomey also said Marriott’s plans for India were largely driven by developments in the country’s infrastructure and travel industry.
“I remember a time, maybe 10 years ago, when they had 50 airports. They are at 150 airports, and they are going to add another 200,” he said.
One of the biggest challenges of operating in India is the country’s diversity. India has 28 states and eight union territories, with over 100 languages spoken across the country. Its landscape ranges from deserts and tropical jungles to snowcapped mountains.
“There is no one-size-fits-all approach; each region, city, and even property may require a tailored approach to meet guest expectations,” he said.
Toomey’s comments come as the Indian travel market looks set to boom in the years to come.
“If India follows China’s outbound travel trajectory (which it could, due to similarity in population size and per capita income trajectory), then Indian tourists could make 80 million to 90 million trips a year by 2040,” McKinsey wrote in 2023, adding that Indian tourists had made 13 million trips in 2022.
In 2022, Morgan Stanley said in a report that India’s consumption of goods and services, including leisure and recreation, would double to $4.9 trillion, from $2 trillion in 2022, by the end of the decade.
An estimated 1.4 billion tourists traveled internationally in 2024, an 11% increase from 2023, per UN Tourism’s World Tourism Barometer. UN Tourism said it expected international tourism arrival numbers to grow by 3% to 5% this year.
China still matters
Toomey told Business Insider that Marriott’s plans for India aren’t coming at the expense of other Asian markets such as China.
“I wouldn’t say it’s over for China. At the start of the decade, China was a big bet, and it still is today,” he said.
“China remains one of the top source markets for travelers heading to countries like Japan, Indonesia, Thailand, you name it,” he added.
Toomey said Marriott’s expansion plans for India were inspired by what they had learned from operating in the Chinese market.
“I feel that India is in a similar position to where China was 10 to 15 years ago,” he said.
“When you look at the budding population of 1.4 billion people surpassing China’s, and a democracy that gives its citizens the freedom to travel where they want, we just feel that India is going to be massive,” he continued.
Besides increasing its number of hotels, Toomey said Marriott has been broadening its partnerships with local partners in India. This includes launching a co-branded hotel credit card with India’s HDFC Bank. In August, Marriott announced a joint loyalty program with the Indian e-commerce giant, Flipkart.
