Marriott records strong growth in 21

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Marriott International Inc. revealed that 2021 was a strong year for room growth and signings. The company also provided an overview of key trends which it believes are currently impacting the global development of the hospitality industry. These trends have contributed to Marriott’s growth in 2021 and are expected to propel the company’s growth over the next few years.

At the end of 2021, Marriott’s global system consisted of nearly 8,000 properties and approximately 1.48 million rooms in 139 countries and territories. At the end of the year, the company had the largest development pipeline in the world, with approximately 485,000 rooms. It signed 599 agreements in 2021 representing around 92,000 rooms, just over half of which are located outside the United States and Canada. Chambers coming out of the pipeline remain at historically low levels, despite the challenges posed by the pandemic. In 2021, Marriott added more than 86,000 rooms on a gross basis, growing the system by 3.9%, including deletions of 2.1%. The churn rate was 1.2% excluding exits from 88 Service Properties Trust select service hotels.

“Marriott benefits from being at the intersection of information and ideas from a global community of developers, properties, owners and franchisees, as well as the more than 160 million members of our Marriott travel program. Bonvoy,” said Stephanie Linnartz, President, Marriott International. “Our analysis of prevailing trends in global development is particularly instructive as we continue to recover from this global pandemic. We have been focused on working closely with our valued community of owners and franchisees throughout this unprecedented time. We are pleased with our strong development results in 2021 and look forward to continuing to create value for our owners and franchisees throughout the recovery and beyond through our quality brands, comprehensive customer support systems businesses and our industry-leading loyalty platform.

Luxury maintains its momentum
Travelers seek luxury leisure travel experiences seeking iconic destinations and undiscovered places, and Marriott is poised to meet that demand with its portfolio of seven luxury brands across 476 hotels in 69 countries and territories. In 2021, the company signed 40 luxury hotel deals, representing more than 6,000 rooms, and grew its portfolio of luxury hotel rooms by a net 4.8%, with notable additions in prime locations around the world, notably in Philadelphia (W Hotels); Nashville (W Hotels); Charlotte (JW Marriott); Bermuda (St. Regis); Paris (Bulgari); Rome (W hotels); Maldives (The Ritz-Carlton) (shown above); Budapest (The Luxury Collection); and Reykjavik (EDITION). The company continues to expand its luxury footprint and has by far the largest global pipeline of hotels in this high-income segment, with nearly 50,000 rooms. Marriott plans to launch more than 30 luxury hotels in 2022 in destinations ranging from Mexico (The St. Regis Kanai Resort) and Portugal (W Algarve) to Australia (The Ritz-Carlton, Melbourne) and South Korea. South (JW Marriott Jeju Resort & Spa).

Leisure boom continues to thrive
Demand for leisure has driven the travel recovery, a trend expected to continue in 2022 as travelers continue to embrace multi-faceted travel, mixing remote work and vacation. Transient leisure overnight stays around the world were the first to recover to pre-pandemic 2019 levels in the second quarter of 2021. For some time prior to the COVID-19 pandemic, leisure travel had increased at a faster pace than business travel, and according to the World Travel & Tourism Council (WTTC), all signs point to a continuation of the trend. Marriott’s resort network includes more than 600 properties located on beaches, mountains and deserts around the world that have seen high demand and demonstrated impressive ADRs.

All inclusive is all growing
Consumer interest in the very high growth all-inclusive resort segment continues to increase. Marriott intends to capitalize on its recent strong momentum in this area. Currently, the company’s all-inclusive portfolio spans 28 properties, representing over 8,000 rooms across the Caribbean, Mexico and Central America. In 2021, it signed 22 deals for all-inclusive resorts, marking a record for the company, including 20 all-inclusive resorts under its Autograph Collection Hotels brand and the first Marriott-branded all-inclusive resort deal in North Africa .

“Marriott’s all-inclusive platform energizes the segment and provides Marriott Bonvoy members, owners and franchisees with access to our strong brands,” said Carlton Ervin, global business development manager, International, Marriott International. “While our initial all-inclusive growth was focused on the Caribbean and Latin America, we see tremendous opportunity to expand our all-inclusive platform to other markets, including the Mediterranean and the Middle East.”

The popularity of extended stays is expanding even further
The extended stay segment has always been attractive to leisure travelers and has become even more popular with the rise of remote working and the combination of business and leisure travel. In 2021, the extended stay segment accounted for 37% of the company’s room signings in the United States and Canada. Marriott Bonvoy’s extended stay brands – Element Hotels, Residence Inn by Marriott and TownePlace Suites by Marriott – include more than 1,400 hotels, offering stays from a few nights to a few weeks. Notable openings planned for 2022 include Element City Center Doha in Qatar, Residence Inn by Marriott The Hague City Center in the Netherlands, and TownePlace Suites Cape Canaveral Cocoa Beach in Florida.

At the American Lodging Investment Summit (ALIS) in Los Angeles next week, Marriott will showcase Element Hotels, Residence Inn by Marriott and TownePlace Suites by Marriott through its “Longer Stay Lounge,” a space where investors, owners and operators can experience the latest in programming and brand design while networking. The Longer Stay Lounge will feature immersive brand vignettes that will allow visitors to discover and experience each of the company’s long stay brands.

“The extended stay segment has been extremely resilient over the past few years and demand from guests and owners continues to grow, driven to some extent by the increase in multi-purpose travel,” said Noah Silverman, Head of Global Development. , United States and Canada, Marriott International. “We are excited to continue the momentum around extended stays and to use our presence at ALIS to communicate the strength and possibilities of Marriott’s longer stay category and the impressive value it brings to owners. “

Conversions transform across the portfolio
Conversions are a significant driver of room growth each year, but have been particularly significant during more disruptive times. Marriott provides a rich and flexible conversion platform with significant revenue synergies, cost reduction opportunities and turnkey access to many of the programs and services it offers, including the Marriott Bonvoy loyalty program, depending on the company. Marriott added more than 18,000 conversion rooms in 2021, representing 21% of overall openings. Additionally, conversions accounted for 27% of room signings in 2021. Interest in conversions to Marriott brands remains high, driven by the company’s portfolio of collectible brands including Autograph Collection Hotels, The Luxury Collection and, in particular, the Tribute portfolio, which has nearly quadrupled its footprint of open and pipeline hotels over the past five years. Additionally, Delta Hotels by Marriott, the company’s flexible full-service conversion brand, accounted for 9% of conversion deals signed in 2021. Notable conversion additions expected in 2022 include the JW Marriott Hotel São Paulo in Brazil; The Brix, Autograph Collection in Trinidad and Tobago; The Serangoon House, Singapore, a Tribute Portfolio hotel; and a Delta Hotels by Marriott City Center Doha in Qatar.

Growth in valuable international markets
In 2021, the company signed 256 agreements representing nearly 51,000 rooms in international locations outside of the United States and Canada. In 2021, the company expanded to Antigua and Barbuda, Belize, Bermuda, Grenada, Saint Lucia and the Turks and Caicos Islands. In 2022, he plans to plant his flag in Albania and Honduras.

Select-service shines worldwide
Development activity for well-established brands within the select service space remains another key driver of growth, particularly internationally. Comprised of brands such as Courtyard by Marriott, Fairfield by Marriott, Four Points by Sheraton, Aloft Hotels and Moxy Hotels, the Company’s select brands are increasingly resonating internationally. In 2021, it opened 107 select-service hotels representing nearly 19,000 rooms in 29 countries across its international regions. In China, notable openings planned for 2022 include Element Yangjiang Hailing Island and Moxy Suzhou City Center. In 2021, Fairfield by Marriott continued to establish itself in Japan with the “Michi-no-eki” project, bringing six additional hotels to key locations in four prefectures across Japan. The company also launched its new Fairfield prototype in Europe and the Middle East.

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