US: Marriott International has given an update on growth and extended stay trends at the Americas Lodging Investment Summit in Los Angeles
The group announced that across its entire brand portfolio, it signed an average of two deals a day, for a total of 726 management and franchise agreements.
This is an increase of 21 per cent over its 2021 signings, representing nearly 108,000 rooms.
Half of the 2022 rooms signed were in international markets, including key growth markets such as India, Saudi Arabia, Mexico and the Caribbean.
At the end of 2022, Marriott’s had nearly 8,300 properties and 1.5 million rooms in 138 countries and territories.
Anthony Capuano, CEO, Marriott International said: “We were pleased with the accelerating pace of development activity in 2022 as the global recovery continued. The proven resilience of travel is powerful and energising. Given the attractiveness of our portfolio of global brands, top-ranked Marriott Bonvoy loyalty program, momentum around conversions, and commitment to innovation, we are excited to continue to help lead in the growth of travel.”
Largest hotel company in Caribbean and Latin America
Last year Marriott also announced its City Express transaction, which is expected to add around 152 hotels and 17,000 rooms across 75 cities in Mexico and three additional countries in Latin America, to its portfolio.
When the deal was announced there were also five under-construction projects, representing an additional 676 rooms. Upon closing, the transaction is expected to make Marriott the largest hotel company in the Caribbean and Latin America.
Select service and extended stay trends
Select service development opportunities continue to be a key growth driver for Marriott, with 523 select service deals, representing three-quarters of global deal signings and nearly half of signings across international regions.
Marriott’s select service portfolio includes Courtyard by Marriott, Fairfield by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, Aloft Hotels, AC Hotels by Marriott and Moxy Hotels.
The growing trend of travellers wanting more space and longer stays, driven by the blending of work and leisure trips, has also meant the extended stay sector is a highly attractive option for both guests and hotel developers.
In 2022, the extended stay category, comprised of the Residence Inn by Marriott, Element by Westin, and TownePlace Suites by Marriott brands, accounted for a record 30 per cent of the company’s signings.
Noah Silverman, global development officer, US and Canada, Marriott International said: “The select service and extended stay segments continue to generate significant growth for the company, particularly in the US and Canada, said Silverman. We see exceptional opportunity to propel growth further among our select service and extended stay brands, particularly in underserved secondary and tertiary markets.”
New serviced apartment brand
To meet the growing demand and changing consumer travel preferences for more room and longer stays, Marriott announced its further commitment to the extended stay sector with the announcement of its new brand Apartments by Marriott Bonvoy.
Apartments by Marriott Bonvoy will feature a separate living room and bedroom, full kitchen, and in-unit laundry, but will be differentiated from hotel product by not typically offering certain traditional hotel services such as food and beverage and meeting spaces.
Apartments by Marriott Bonvoy is anticipated to offer developers the flexibility to build new properties or convert existing properties, with a design approach similar to the company’s Autograph Collection Hotels and Tribute Portfolio brands.
