Marriott International Announces Global Growth of Apartments by Marriott Bonvoy Portfolio
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Marriott International's expansion into apartment-style accommodations represents a strategic move to diversify its portfolio and tap into the growing trend of 'bleisure' travel, where business and leisure travel blend. The development agreements in key markets such as the United States, Italy and Saudi Arabia indicate a targeted approach to global growth, focusing on areas with high potential for tourism and business travel.
The introduction of Apartments by Marriott Bonvoy could potentially disrupt the traditional hotel market by offering more space and home-like amenities that appeal to a segment of travelers seeking extended stays. This is particularly relevant in a post-pandemic world where remote work has become more commonplace and travelers may seek longer-term accommodations that provide comfort and functionality.
From a stock market perspective, this expansion may be viewed positively by investors, as it demonstrates Marriott's adaptability and commitment to innovation. However, the success of this initiative will depend on the execution of these projects and the company's ability to maintain high occupancy rates and profitability margins in these new properties.
The financial implications of Marriott's expansion into the apartment-style accommodation market are multifaceted. On one hand, it presents an opportunity for revenue diversification and potential growth in Average Daily Rate (ADR) due to the premium nature of the offerings. On the other hand, the costs associated with conversions and new builds must be carefully managed to ensure a favorable return on investment.
Investors should monitor the occupancy and RevPAR (Revenue per Available Room) metrics of these new properties once operational, as they will be critical indicators of performance. Additionally, the leveraging of the Marriott Bonvoy loyalty program could drive customer retention and higher lifetime value, which would be a positive signal for long-term revenue stability.
It is important to note that the forward-looking statements regarding expected unit growth and new project openings carry risks. Factors such as market demand, competition and economic conditions could impact the actual performance of these new properties and thus, Marriott's overall financial health.
Marriott's decision to offer a new brand that combines hotel amenities with apartment living caters to the evolving preferences of travelers and residents alike. The choice of locations for expansion, including Detroit and St. Louis in the United States, Courmayeur in Italy and NEOM in Saudi Arabia, reflects a strategic approach to real estate development that considers both emerging and established markets.
The real estate implications of such a move are significant, as it may influence the local property markets. In particular, the integration of these properties into multi-use developments could lead to increased property values and stimulate further investment in the surrounding areas.
For developers, the option to convert existing buildings or pursue new builds with Marriott presents potential for premium positioning in the market. However, it is essential to consider the local real estate dynamics, including supply and demand, to assess the viability of such projects.
Just one year after announcing its intention to expand presence in premium and luxury apartment-style accommodations, Marriott has opened its first property in
"Marriott is thrilled to bring Apartments by Marriott Bonvoy to our development community around the world," said Marriott International Chief Financial Offer and EVP, Development Leeny Oberg. "This new, compelling offering provides residential and hotel developers an excellent value proposition for new builds and conversion opportunities. As guests are increasingly blending work, personal and family travel, they are looking for a distinct and locally inspired solution to meet their longer-stay needs."
Providing guests with a truly independent stay, complete with sizable living spaces and sophisticated locally inspired design, the properties are situated in prime locations and designed to offer premium and luxury apartment-style accommodations. No matter their length of stay, guests can expect private bedrooms, a separate living room, full kitchen, and in-unit washer and dryer to make them feel right at home.
From an owner perspective, Apartments by Marriott Bonvoy provides residential and hotel developers a unique option to convert an existing building, pursue a new build, or integrate as part of a multi-use property with a dedicated welcome lounge, outdoor space, and other amenities. Current Marriott owners and franchisees who are looking to diversify their portfolios, as well as multi-family residential developers, have the power of both Marriott's trusted name and award-winning loyalty program, Marriott Bonvoy® behind each project.
With signed agreements in
Marriott recently announced a signed agreement with Roxbury Group for an Apartments by Marriott Bonvoy in
Anticipated to open Q3 2024, the property is a conversion of The Plaza Apartments in Midtown Detroit, centrally located in the hub of the city. With approximately 92 units, this location will also have a 500 square foot fitness center and sits atop two restaurant outlets with easy access for guests.
Marriott is also announcing a new project with Midas Hospitality, a longtime owner and operator of Marriott properties, for an Apartments by Marriott Bonvoy in
In Courmayeur, Aosta Valley, Italy, Marriott signed an agreement with Castello Sgr, an asset management company with strong hospitality expertise, to open Le Géant, an Apartments by Marriott Bonvoy property.
Paving the way for a new type of development project, this property is anticipated to have 47 units, each offering travelers sizeable living spaces and sophisticated locally-inspired design, to make each stay refreshingly unique.
Marriott has also signed an agreement with NEOM to bring Apartments by Marriott Bonvoy to the luxury island destination Sindalah on the northwest coast of
Anticipated to open in 2024, the property will feature 218 units including studios and one, two and three-bedroom apartment-style units, all equipped with a separate living room, full kitchen, and in-unit washer and dryer. The property is also slated to offer a gym and swimming pool.
Note on forward‐looking statements:
This press release contains "forward‐looking statements" within the meaning of federal securities laws, including statements related to expected unit growth and new project openings and similar statements concerning possible or anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risk factors that we describe in our Securities and Exchange Commission filings, including our most recent Annual Report on Form 10‐K and Quarterly Reports on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these statements as the date of this press release, and we undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise.
Marriott International, Inc. (NASDAQ: MAR) is based in
Apartments by Marriott Bonvoy offers a truly independent stay with sizable living spaces and sophisticated locally inspired design, making each stay refreshingly unique. Centrally located, premium and luxury apartment-style accommodations are designed with private bedrooms, a separate living room, full kitchen and in-unit laundry. Apartments by Marriott Bonvoy, one of more than 30 brands in the Marriott Bonvoy portfolio, participates in Marriott Bonvoy, the company's award-winning travel program and Marketplace. To learn more and book a stay, visit Marriott.com.
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SOURCE Marriott International, Inc.
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