Marriott Launches Midscale Venture With An Investment In Wai Wai Maker's Hospitality Brand
Under the agreement, Concept Hospitality's flagship brands — The Fern, The Fern Residency and The Fern Habitat — will affiliate with Series on an exclusive basis across India.
Nasdaq-listed hospitality major Marriott International Inc. launched its latest brand of mid- and upscale lodging segments called Series by Marriott. The so-called 'soft' brand, launched first in India through a founding deal with Concept Hospitality Pvt., marks Marriott's first direct investment in the country.
Under the agreement, Concept Hospitality's flagship brands — The Fern, The Fern Residency and The Fern Habitat — will affiliate with Series on an exclusive basis across India, Marriott said in a press conference on Thursday.
It will also make a 'small' equity investment in Concept Hospitality, Marriott added. The details of the deal were not disclosed.
CG Hospitality, the hospitality division of multinational conglomerate CG Corp Global, is a majority stakeholder in Concept Hospitality. Nepali billionaire Binod Chaudhary-led CG group is primarily known for the Wai Wai Noodles brand.
The Fern portfolio is currently comprised of 84 open properties and 31 executed pipeline deals, totaling to about 8,000 rooms. Fern properties are expected to join Marriott's portfolio in India over time. This timeline will depend on discussions with third-party hotel owners and execution of long-term franchise agreements with them, the US firm added.
"Marriott makes strategic investments in different countries regularly. In India, we had a little white space in our portfolio, where we did not have midscale brands that had the opportunity for strong growth," Rajeev Menon, president - Asia Pacific excluding China at Marriott International, told NDTV Profit.
The company expects the Fern portfolio to start contributing to Marriott's topline in a meaningful way from the next year, Menon added. "There is a considerable revenue opportunity in what Fern represents, and what we can scale it up to," he said.
In addition to its founding deal with Concept Hospitality, Marriott is also in active discussions about the Series brand with owners in the United States, and the regions of the Caribbean and Latin America, Europe, Middle East, and Africa.
"Our vision is to unlock the immense potential of Tier 2 and Tier 3 cities, as well as lesser-known destinations across India," said Concept Hospitality chairperson Param Kannampilly.
