Project financing facilities still look possible for Marriott in the Middle East, China and India, according to J W Marriott Jr, Chairman and Chief Executive Officer of Marriott International. "Now, there is no financing for projects anywhere in the world, except for the Middle East, China and India," Marriott said at a recent global media conference.
"There is no doubt the development of new-built hotels is slowing down. But our approach since last year, particularly in Europe and the Middle East, is to focus on conversions and hotels under construction and that are unbranded. Seventy per cent of the market can benefit from our brands," he said.
The group has 700 hotels in the pipeline worldwide and 30,000 rooms are expected to open this year around the world. About 115,000 rooms will come online in the next four years, according to Marriott. "We have seen no reduction in our pipeline in the Emea, only a shift from existing to under construction hotels. We still see a great opportunity," he said.
Marriott further said while the group was suffering like everyone else, "we will be actually reducing our debt in Q1". "The operating model is to manage hotels rather than own them," said Marriott.
In Dubai, the group's hotels under construction include Renaissance in Motor City, The Courtyard in the Formula 1 Park and the JW in Dubailand, according to Jurgen Giesbert, Executive Vice-President, UK, Ireland, Middle East and Africa: "The construction of Ritz Carlton in the Financial Centre is almost finished," he said.
In Bahrain, there are hotels under construction on the Amwaaj Island and three in Qatar. "No country is immune from the recession but markets in Doha and Bahrain are holding up very well," said Giesbert. "We have noticed that our business partners in the Middle East are having a higher success rate than others. I think we are finding out for the first time what it actually means to be global," he added.
The European launch of the Residence Inn by Marriott brand, with a new Munich property, is scheduled to open in 2011.
Last week saw the UK grand openings of Marriott's "new look" Courtyard by Marriott at Gatwick Airport and the Twickenham Marriott, home of English rugby.
Also under construction are the 116-room Lingfield Park Marriott & Country Club, which are scheduled to open in 2010 and the 245-room London St Pancras, a Renaissance Hotel scheduled for completion in late 2010.
Furthermore, 23 hotels are under construction in India and 21 in China, according to Marriott.
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