Prestige Estate Projects Ltd. is likely to ink a pact with Marriott Inc. to develop six properties across the western and southern regions in a bid to expand its footprint in South Asia, according to two people with knowledge of the matter.
Under the agreement, Marriott will develop a hotel under its brand Autograph Collection in Goa, the first in South Asia. Autograph Collection is a chain of hotels in Marriott Bonvoy’s portfolio.
Prestige Estate confirmed the development in an emailed response and pegged the valuation of these six properties at Rs 4,250 crore.
The cumulative inventory is 801 keys, with hotels spanning across Bengaluru, Goa and Sakleshpur, according to the people quoted above, who spoke on condition of anonymity.
The agreement includes the development of 130 key hotels under the brand Moxy Hotels, the second one under the brand in India. Moxy targets millennial travellers and is designed for affordable luxury under the Marriott brand. Marriott opened the first Moxy hotel in India in January this year.
The projects will be completed in two to five years, Prestige Estate said in the email response.
The Prestige Group also plans to open hotels under the brand names Tribute in Goa, JW Marriott in Karnataka’s Sakleshpur plantation and three hotels in Bengaluru.
The real estate company’s third quarter revenue fell nearly 22% to Rs 1,796 crore and net profit was also down 2% to Rs 269 crore.
Its total hospitality capex stood at Rs 1,699 crore at the end of December 2023, with Rs 883.1 crore to be utilised for upcoming projects, according to its investor presentation. The group currently has 10 hospitality projects under its belt with 1,489 keys. It currently has three ongoing and three upcoming ones, over and above the new arrangement with Marriott.
The six projects will give a boost to Prestige Estate’s hospitality segment, which makes up 10% of its total revenue of Rs 5,713.1 crore, from April to December 2023.
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