Marriott Begins 2014 with Fast Growing New-Build Pipeline
Monday January 27th, 2014 - 9:50AM BG
| | | | | | | | | | |
These are shortcuts to your favorite social networking and bookmark sites. Add this story to your Facebook page, del.icio.us, DiggIt, and many others!
LOS ANGELES—At the America’s Lodging Investment Summit (ALIS) here, Marriott International, Inc. announced that it had the fastest-growing new-construction pipeline in the industry, worldwide, in 2013, based on information published by Smith Travel Research.
In addition, Marriott reported that it signed more than one hotel project per day in 2013, totaling a record 387 hotels and 67,000 rooms. The company opened nearly 26,000 new rooms in 2013 and expects new hotel openings to accelerate in 2014 and 2015.
In 2013, Marriott increased its total development pipeline by over 30%. At year-end 2013, Marriott had more than 195,000 rooms under development across five continents, compared to 176,000 rooms at the end of the third quarter and 143,000 rooms just a year ago.
At year-end 2013, the company’s global pipeline included 72,000 hotel rooms under construction, 83,000 rooms signed but not yet under construction, 11,000 rooms awaiting conversion to one of Marriott’s brands, and 29,000 rooms for projects that have been approved for development but not yet signed.
Fueling this success is Marriott’s lineup of 18 brands, including its luxury and lifestyle portfolio, which accounts for nearly 25% of the company’s overall pipeline.
“Our luxury and lifestyle portfolio of 438 hotels across nine brands is robust,” stated Arne Sorenson, president and CEO of Marriott International. “The Ritz-Carlton is recognized as one of the world’s most iconic luxury brands and is expanding outside the U.S. At the same time, we are rapidly growing new brands such as EDITION, Moxy Hotels, AC Hotels by Marriott and Autograph Collection, all brand innovations that position us well with customers looking for a different type of experience.”
EDITION, a full-service, luxury/ lifestyle brand conceived in collaboration with legendary hotelier Ian Schrager, is gaining ground, with 10 hotels open or in the signed pipeline, including The Miami Beach EDITION, scheduled to open later this year. Future hotels are planned for Abu Dhabi (2015), Gurgaon, India (2015), Manhattan Madison Avenue/NYC (2015), Sanya, China (2015), Bangkok (2016) and West Hollywood (2017), as well as the just announced Times Square EDITION in New York (2017).
Moxy Hotels is on track to open its first hotel in Milan, Italy, in August, and additional properties are expected to open in six other European markets in 2015. Moxy is projected to reach 150 hotels in the next 10 years.
The Autograph Collection has added nearly 60 hotels since its 2010 introduction at ALIS. “Marriott’s determined focus on powerful brands and global growth has delivered unparalleled results,” stated Tony Capuano, EVP and Chief Development Officer for Marriott International.
In Africa, Marriott expects to complete the acquisition of the Protea Hospitality Holdings’ brands and its management business in April 2014. With Protea, Marriott will nearly double its distribution in the Middle East and Africa to 23,000 rooms.
In its Asia Pacific region, Marriott expects to open a hotel every week across 10 different brands, doubling in size, reaching 330 hotels with more than 96,000 rooms across 16 countries by 2016. In 2013, Marriott signed agreements to add 78 new hotels and more than 22,000 rooms in the Asia Pacific region.
In the U.S., Marriott ended 2013 with more than 22,000 hotel rooms under construction, representing the largest hotel construction pipeline in the industry, according to data from Smith Travel Research. In fact, Marriott operates or franchises one of every five new hotel rooms that opened in the U.S. in 2013.
Tags: Marriott • Hospitality • Brands • Construction/Renovation •
For the past few years, the talk of The Lodging Conference in Phoenix had been focused on the economic recovery, solid industry projections and “cautious optimism.” With the word cautious no longer necessary, the economic outlook took a backseat this year to the seemingly unending parade of new lifestyle brands.