BETHESDA, Md., Jan. 23,
2023 /PRNewswire/ -- At the Americas Lodging
Investment Summit (ALIS) in Los
Angeles, Marriott International, Inc. (Nasdaq: MAR)
announced that the company's deal signings accelerated again in
2022. The company signed an average of two deals a day, for a total
of 726 management and franchise agreements, an increase of 21
percent over 2021 signings, representing nearly 108,000 rooms. In
addition, Marriott's City Express transaction, announced in
October 2022, is expected to add
around 17,000 rooms.
VIDEO: Marriott International Marks Another Year of
Accelerated Signings
Conversions helped drive signings activity, contributing a
robust 20,500 rooms, or approximately 20 percent of rooms signed
during the year. Half of the 2022 rooms signed were in
international markets, including key growth markets such as
India, Saudi Arabia, Mexico, and the Caribbean. The company's
industry-leading global development pipeline totaled over 3,000
properties representing more than 496,000 hotel rooms at the end of
the year, excluding the City Express rooms.
During the year, the company added 394 properties, representing
more than 65,000 rooms on a gross basis, growing the system 4.4
percent. Including deletions of 1.3 percent, net rooms increased
3.1 percent. Excluding the impact of the company's exit from
Russia, the deletion rate was 0.8
percent and net rooms increased 3.6 percent. At the end of 2022,
Marriott's worldwide system consisted of nearly 8,300 properties
and roughly 1.5 million rooms in 138 countries and territories.
"We were pleased with the accelerating pace of development
activity in 2022 as the global recovery continued," said
Anthony Capuano, CEO, Marriott International. "The proven
resilience of travel is powerful and energizing. 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."
Extending Marriott's Lead in Luxury
With an unparalleled portfolio of nearly 500 luxury hotels
and resorts in 69 countries and territories, Marriott is poised to
extend its lead in luxury with a record 42 luxury hotel agreements
signed last year, representing nearly 8,000 rooms. In 2022,
Marriott opened a number of notable luxury properties around the
world in locations including Madrid (The Madrid EDITION), New York City (The Ritz-Carlton New York,
NoMad), Greece (W Costa Navarino),
and Australia (The Tasman, a
Luxury Collection Hotel, Hobart).
Conversions Continue to Contribute Meaningfully to
Growth
Marriott continues to see strong momentum from conversions,
including multi-unit conversion opportunities. In June, Marriott
announced a strategic agreement with Vinpearl, to convert and
develop 2,200 rooms across eight hotels in Vietnam. Of the eight hotels, six are
conversions that have already been added to Marriott's system.
Thanks to a robust portfolio of conversion-friendly brands, the
company added more than 80 conversion properties in 2022 in
locations around the world including Brazil (JW Marriott Hotel São Paulo) and
India (The St. Regis Goa Resort).
In the U.S. and Canada region, the
company signed 56 conversion deals, representing nearly 8,000
rooms, including a record 34 select-service deals representing
nearly 4,000 rooms. The company's collection brands, including
Autograph Collection Hotels, The Luxury Collection, and Tribute
Portfolio, represented 30 percent of global conversion rooms
signed, with over 6,000 rooms signed in 2022.
"We continue to see conversions provide meaningful growth for
our system, reinforcing the value of Marriott's brands as owners
look to reposition assets and maximize returns," said Noah Silverman, Global Development Officer, U.S.
& Canada, Marriott
International.
Marriott Jumps into Affordable Midscale
Among the major highlights of 2022, Marriott announced its
planned entry into the popular affordable midscale segment. Under
an agreement with Hoteles City Express, S.A.B. de C.V., Marriott
plans to acquire the highly regarded City Express brand portfolio.
As of October 19, 2022, the portfolio
was comprised of 152 hotels, including around 17,000 rooms across
75 cities in Mexico and three
additional countries in Latin
America, and 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. Given the high-growth nature of the affordable
midscale segment, the company sees opportunities to further expand
the City Express by Marriott brand in the Caribbean and Latin
America region, as well as in other locations. Marriott
expects the transaction, which is subject to regulatory approval
and other customary closing conditions, could close in the first
half of 2023.
All-In on All-Inclusive in New Segments and
Markets
As a top player in the high growth all–inclusive space, Marriott
continues to focus on expanding its all-inclusive platform to meet
rising guest demand. In 2022, the company added three
all-inclusive conversion properties - the Royalton
Splash Riviera Cancun, an Autograph Collection All-Inclusive Resort
in Mexico, Sanctuary Cap Cana, a
Luxury Collection Adult All-Include Resort in the Dominican Republic and The Westin Porto de
Galinhas, an All-Inclusive Resort in Brazil. In addition, the company recently
announced the signing of three luxury all-inclusive properties in
Mexico: Almare, a Luxury
Collection All-Inclusive Resort on Isla
Mujeres, and a JW Marriott All-Inclusive and W All-Inclusive
in Costa Mujeres. Today, the All-Inclusive by Marriott Bonvoy
portfolio includes 33 properties in the Caribbean and Latin
America, located across Mexico - Riviera Nayarit & Cancun, Jamaica, Barbados, Antigua
and Barbuda, Saint Lucia,
Costa Rica, the Dominican Republic, Grenada and Brazil. The company anticipates that
Southeast Asia and resort markets
in Europe and the Middle East could provide additional
all-inclusive opportunities in the future.
"We have seen a tremendous year of growth in our international
regions," said Carlton Ervin, Global
Development Officer, International, Marriott International. "In the
Middle East, we saw a record
number of room signings. With rising momentum in our all-inclusive
offerings and our planned expansion into the midscale market, we
remain focused on providing consumers with more offerings to meet
their needs."
Select Service Growth Stays Strong Globally
Select service development opportunities continue to be a key
growth driver for Marriott, representing three-quarters of global
deal signings and nearly half of signings across international
regions. Marriott's select service portfolio provides an array of
brands including Courtyard by Marriott, Fairfield by Marriott, SpringHill Suites by
Marriott, Four Points by Sheraton, Aloft Hotels, AC Hotels by
Marriott and Moxy Hotels. In 2022, the company signed 523 select
service deals. In addition, the company added 216 select service
hotels around the world, including in Greece (Moxy Athens City), Australia (AC Hotel Melbourne Southbank) and
Japan (Courtyard by Marriott
Nagoya).
Increasing Popularity of Longer Stays
With growing consumer travel preferences for more space driven
by the blending of work and leisure trips, the longer stay segment
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 percent of the company's
signings.
"The select service and extended stay segments continue to
generate significant growth for the company, particularly in the
U.S. 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."
Marriott's Bridging The Gap Program Tackles Barriers to
Entry
In the U.S. and Canada, the
company announced in 2022 the launch of Marriott's Bridging The
Gap, a multi-year development program that aims to address the
barriers to entry that historically underrepresented hotel owners
and developers face. As part of the program, Marriott has allocated
$50 million to offer financial and
other incentives to qualified historically underrepresented owners
and franchisees that will have a controlling equity interest in
select branded projects. To date, Marriott's Bridging the Gap has
resulted in nine signed deals in locations including Jackson, Mississippi and St. Louis, Missouri.
Launch of Apartments by Marriott Bonvoy
To meet the growing demand and changing consumer travel
preferences for more room and longer stays, Marriott announced its
further expansion into the serviced-apartments segment in November
2022. Apartments by Marriott Bonvoy is a residential soft
brand with an independent, local design aesthetic. Intended to be
introduced in the upper-upscale and luxury segments, 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.
Note on Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of United States federal
securities laws, including statements related to deal signings,
expected future project openings and portfolio growth; our
development pipeline; the pace and momentum of development
activity, conversion activity and growth in certain product tiers;
future growth opportunities; owner interest in certain offering
types; the company's plans to acquire the City Express brand and
the brand's future growth opportunities; the company's expansion
plans related to other market segments and new product offerings;
anticipated customer demand trends and preferences; travel and
lodging demand trends and expectations; and similar statements
concerning 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
identify in our U.S. Securities and Exchange Commission filings,
including our most recent Annual Report on Form 10-K or Quarterly
Report 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 forward-looking
statements as of the date of this press release and undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
About Marriott International
Marriott International,
Inc., (NASDAQ: MAR) is based in Bethesda,
Maryland, USA, and encompasses a portfolio of nearly 8,300
properties under 30 leading brands spanning 138 countries and
territories. Marriott operates and franchises hotels and licenses
vacation ownership resorts all around the world. The company offers
Marriott Bonvoy®, its highly awarded travel program. For more
information, please visit our website at www.Marriott.com, and for
the latest company news, visit www.MarriottNewscenter.com. In
addition, connect with us on Facebook and @MarriottIntl on Twitter
and Instagram.
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SOURCE Marriott International, Inc.