Despite the damage inflicted on the hospitality industry by the COVID-19 pandemic, Marriott International reported on Thursday that 2021 has proven to be a strong year for the company’s overall development in terms of room growth and signings. Along with an update on the health of its business, Marriott also offered a look at some key trends that look set to shape the industry in 2022.
“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 of Marriott. International, said in a statement.
She continued: “Our analysis of the 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 delighted 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 support systems to businesses and our industry-leading loyalty platform. »
Luxury travel maintains momentum
Demand from leisure travelers for luxury travel experiences in well-known iconic destinations and far-flung, less-explored destinations remains high. Marriott manages an industry-leading portfolio of seven luxury brands in 69 countries and territories. In 2021, the company increased its portfolio of luxury hotel rooms by a net volume of 4.8% and continues to expand its luxury footprint with nearly 50,000 rooms currently in preparation for this high-income segment. . Marriott plans to launch more than 30 luxury hotels in 2022.
Pleasure travel maintains its lead
Leisure travelers are expected to continue to lead the industry’s (well, sort of) post-pandemic rebound throughout 2022. According to Marriott’s press release, “transient leisure overnight stays around the world have been the first to return to pre-pandemic levels of 2019 in the second quarter. of 2021.” Even before the pandemic, the leisure travel market had grown faster than business travel and, according to the World Travel & Tourism Council (WTTC), this segment should continue to lead the way.
— All-inclusive allure continues to grow
The all-inclusive resort segment continues to experience very strong growth and gain momentum in terms of consumer demand. For its part, Marriott intends to continue expanding its all-inclusive portfolio, which currently includes 28 properties in the Caribbean, Mexico and Central America. Last year, it signed 22 new all-inclusive resort deals, marking a company record.
—Extended stay is growing in popularity
Extended stay options have become even more popular among leisure travelers, due to the current trend towards remote working and the easier integration of working time into leisure vacations. Extended-stay products accounted for 37% of Marriott’s North American room signings in 2021. Its Element Hotels, Residence Inn by Marriott and TownePlace Suites by Marriott brands account for more than 1,400 of its hotel properties. This year, the company plans to announce notable openings such as Element City Center Doha, Residence Inn by Marriott The Hague City Center, and TownePlace Suites Cape Canaveral Cocoa Beach.
Conversions continue to drive growth
Hotel conversions have been a particularly strong driver of room growth amid the pandemic disruption. Marriott’s conversions accounted for 27% of its room signing in 2021, with more than 18,000 conversion rooms added last year. Conversion openings planned for 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.
International growth still strong
— Expansion to other international markets
Marriott continues its rapid expansion into new international markets, having signed 256 agreements representing nearly 51,000 rooms in international locations outside the United States and Canada in 2021. Last year, the global expansion of the company brought its brands to Antigua and Barbuda, Belize, Bermuda, Grenada, Saint Lucia and Turks & Caicos; and it also plans to debut in Albania and Honduras in 2022.
—Select Service is gaining traction globally
The continued development of Marriott’s well-established select service brands will also continue to act as another key growth driver, the company said, particularly in international markets where its select brands are increasingly resonating with consumers. The Company’s select service brands include Courtyard by Marriott, Fairfield by Marriott, Four Points by Sheraton, Aloft Hotels and Moxy Hotels. It opened 107 select-service hotels in 2021, representing 19,000 rooms in 29 different countries.