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Monday,  July 15, 2024 6:32 AM 

Marriott reports record year of growth, builds luxury & all-inclusive portfolio

  • Hotels
  •   01-23-2024  6:56 am
  •   Pax Global Media

Marriott reports record year of growth, builds luxury & all-inclusive portfolio
Ritz-Carlton New York, NoMad. (Marriott)
Pax Global Media

Marriott International is reporting a “record year of global signings,” with 52 per cent more organic rooms signed in 2023 than in 2022 as it continues to expand its offerings.

The hotelier also announced that it achieved strong net rooms growth of 4.7 per cent last year.

In a press release, the company said that it signed an average of nearly 2.5 deals a day on management and franchise agreements, representing some 164,000 rooms globally.

In the United States and Canada – Marriott’s largest region – the company signed a record 91,000 rooms, 37,000 of which were the result of the company’s strategic licensing agreement with MGM Resorts International.

The company says it also saw growth outside of that region with a record of nearly 73,000 organic rooms signed across 74 countries and territories, with particularly strong signings in China, Vietnam, Japan, United Arab Emirates, Mexico, Turkey, Saudi Arabia, and India.

At year-end 2023, Marriott’s global development pipeline totalled nearly 3,400 hotels and roughly 573,000 rooms, an increase of over 15 per cent over a year ago.

JW Marriott in Tampa Bay, Florida. (Marriott)

At the end of 2023, Marriott’s worldwide system consisted of nearly 8,800 properties and more than 1,597,000 rooms in 139 countries and territories.

The company says it added over 400 properties and nearly 64,000 organic gross rooms in 2023.

It also completed its acquisition of the City Express brand portfolio, bringing an additional 150 properties and approximately 17,500 rooms into Marriott’s system during the year.

The company expanded its lead in luxury, announcing its entry into the affordable midscale segment globally, increased its portfolio of branded residences, announced the MGM Collection with Marriott Bonvoy, and continued to grow its share in the all-inclusive segment.

“Marriott remains focused on offering more best-in-class brands and experiences to meet the strong consumer demand for travel,” stated Marriott International President and CEO Anthony Capuano. “As we continue to expand our global brand portfolio, grow our Marriott Bonvoy loyalty platform, and provide innovative offerings to our owner and franchise community, we continue to meet the needs of guests across all stay purposes around the world. I am excited about our momentum as we strive to connect people through the power of travel.”

Growth in luxury

Marriott’s luxury portfolio consist of 623 open properties spanning 70 countries.

In 2023, the company signed a record 58 deals for luxury hotels and resorts, bringing Marriott’s luxury portfolio in the global development pipeline to 245 hotels, including more than 20 hotels expected to open in 2024.

This past year also reflected W Hotels’ new chapter, as it continued its brand refresh and global expansion into new destinations, including the debut of W Budapest, the brand’s first hotel in Hungary, and W Edinburgh, the second W hotel in the United Kingdom.

The Ritz-Carlton, Mexico City. (Marriott)

Other highlights from the year include the opening of Rissai Valley, a Ritz-Carlton Reserve, marking the company’s 500th hotel in Greater China.

The Ritz-Carlton brand debuted in the U.S. Pacific Northwest with The Ritz-Carlton Portland, the St. Regis brand debuted in the U.S. Midwest with The St. Regis Chicago, and three luxury hotels were signed in Vietnam (JW Marriott Trang An Resort & Spa, The Luxury Collection Resort, Hon Thom Island, and The Ritz-Carlton Reserve, Hon Thom Island).

Affordable midscale

Marriott entered the high-growth affordable midscale segment in 2023 with the acquisition of the City Express brand portfolio in the Company’s Caribbean and Latin America (CALA) region.

With around 17,500 rooms across Mexico, Costa Rica, Colombia, and Chile, the deal increased Marriott’s footprint in the CALA region by approximately 45 per cent.

In 2024, the City Express by Marriott brand is expected to expand to additional countries across CALA.

Marriott is continuing this expansion with the announcement of StudioRes, a brand aimed at providing reasonably priced, modern comfort for guests seeking longer stay accommodations in the U.S. and Canada.

On Jan. 17, 2024, Marriott celebrated the first groundbreaking for the brand in Fort Myers, Florida, with approximately 300 other potential deals under discussion in 150 markets.

In September 2023, Marriott announced the launch of Four Points Express by Sheraton, a conversion-focused midscale brand designed in response to growing consumer demand for reliable and affordable accommodations in Marriott’s Europe, Middle East and Africa (EMEA) region.

Through year end 2023, the company signed six Four Points Express by Sheraton deals in the United Kingdom and Turkey.

Momentum in conversations & all-inclusive

Conversions are also helping drive growth, with 25 per cent of Marriott’s room openings coming from conversions.

In 2023, the company signed a record 184 conversion properties, representing nearly 65,000 rooms, including MGM. Marriott’s collection brands including Autograph Collection Hotels, The Luxury Collection, and Tribute Portfolio, represented 29 per cent of global conversion rooms signed.

Marriott also continues to see global interest in all-inclusive, signing three deals in its EMEA region in 2023, bringing its portfolio to 49 open and pipeline properties located across 12 markets and 10 brands, with another six anticipated openings in 2024.

Branded residences

In 2023, customer demand fuelled Marriott’s expansion of its branded residences portfolio to exciting and growing markets around the world.

The company has 134 open locations and 115 pipeline residential projects across 49 countries and territories and 16 brands.

Recent highlights include the openings of The St. Regis Residences, Cairo, Egypt, The Residences at Sheraton Cebu Mactan Resort, Philippines, The Ritz-Carlton Residences, Portland, and The Ritz-Carlton Residences Mexico City.

Growing Apartments by Marriott Bonvoy

Launched in 2022, Apartments by Marriott Bonvoy provides developers am option to convert an existing residential building, pursue a new build, or integrate as part of a mixed-use property, with a dedicated welcome lounge, outdoor space, and other amenities.

The company opened the first Apartments by Marriott Bonvoy property in Casa Costera, Isla Verde Beach, San Juan, Puerto Rico, in December 2023 and expects to continue growing its global presence, with additional signed agreements in the United States, Italy, and Saudi Arabia.

Launching MGM Collection with Marriott Bonvoy

In July 2023, Marriott announced the signing of a licensing agreement with MGM Resorts International and the creation of the MGM Collection with Marriott Bonvoy, which is expected to launch in early 2024.

The agreement encompasses 17 of MGM’s unrivalled resorts, representing more than 40,000 rooms in Las Vegas and other cities across the U.S.

The deal is expected to increase Marriott’s global rooms distribution by 2.3 per cent.

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