Hotel conversions in the Caribbean and Latin America region have been holding steady for the past few years and have contributed significantly to Marriott International’s growth in the region.
Investors and hoteliers have been leveraging the advantages of rebranding and renovating existing properties, helping grow Marriott’s portfolio in the region.
The increased conversion activity has helped Marriott’s organic growth in the Caribbean and Latin America. The Bethesda, Md.-based company added around 17,500 conversion rooms and signed 20,500 rooms in 2022. This was nearly 20% of rooms signed globally in the year.
In 2022, over 50% of Marriott’s room signings were conversions across the region. Until Q1 2023, the Caribbean and Latin America have more than 3,000 conversion rooms in the pipeline.
According to Lodging Econometrics, the pipeline of brand conversions in Latin America soared by 22% in Q1 2023, against Q1 2022, to stand at 67 projects and 9,464 rooms.
This aligns with Marriott’s data, with conversion activity in Q1 2023 accounting for 29% of rooms signed and 25% of rooms opened by the group globally.
Here are some of the Marriott conversions which took place in 2022:
- JW Marriott Hotel Sao Paulo — The 258-room hotel opened in May and was Marriott’s first luxury property in the city. Designed by the U.S.-based HKS Inc., the hotel’s design is inspired by Brazilian architecture.
- The Westin Porto de Galinhas, an All-Inclusive Resort — The oceanfront resort underwent renovations and opened in Brazil in December. Marriott collaborated with PGA Hotel Management Group for the conversion. The property introduced the Westin brand and Marriott’s first-ever All-Inclusive resort to Brazil, one of Marriott’s fastest-growing emerging markets in the Caribbean and Latin America.
- Sanctuary Cap Cana, a Luxury Collection Adult All-Inclusive Resort in the Dominican Republic — Rebranded in September, Marriott collaborated with Playa Hotels & Resorts to renovate the 325-key resort in 2019. This was the first All-Inclusive Marriott hotel in the luxury segment. The hotel has multiple a la carte restaurants, bars, pools and its own nightlife destination.
Marriott has continued to see strong momentum in the space, owing to many of its conversion-friendly brands across segments, like The Luxury Collection, Autograph Collection Hotels, Tribute Portfolio, Delta Hotels and Four Points by Sheraton.
Hotel owners, developers and investors prefer Marriott’s brand conversion opportunities for several reasons.
“For independent hoteliers, adding an existing property to our portfolio provides access to our well-established loyalty, distribution, and marketing platforms, access to our global sales organization, and direct bookings at our low customer acquisition cost,” said Walter Regidor, vice president, development for Marriott International in Caribbean and Latin America. “Owners also have the opportunity to see potential cost savings connecting to the Marriott ecosystem, including our digital and innovation programs, which can aid in improving the visibility of a property and positioning the property for potentially higher occupancy.”
Conversions are a convenient option for both the owner and the brand, as it aligns the brand’s expansion strategy with the owner’s cost, risk and timing concerns.