Marriott International, Inc. has closed 2023 with a record year of signings worldwide, with 52% more organic rooms signed than in 2022. Net room growth climbed 4.7% in 2023, Marriott said at the Americas Lodging Investment Summit (ALIS).
Last year saw Marriott sign a record number of organic management and franchise deals, averaging around 2.5 agreements a day, accounting for 164,000 rooms globally, Marriott said in a release.
In the U.S. and Canada, Marriott’s biggest geographic market, the group’s signings peaked at 91,000 rooms. Out of this, 37,000 were the result of Marriott’s strategic licensing deal with MGM Resorts International.
Marriott saw robust signings outside of the U.S. and Canada, with a record of around 73,000 organic rooms signed in 74 countries. Most of these signings were in China, Vietnam, Japan, the United Arab Emirates, Mexico, Turkey, Saudi Arabia, and India. By the end of 2023, Marriott’s global development pipeline stood at close to 3,400 hotels and around 573,000 rooms, surging by more than 15% from 2022.
By the end of 2023, Marriott’s global system totaled around 8,800 properties and more than 1,597,000 rooms across 139 countries. The company added more than 400 properties, totaling roughly 64,000 organic gross rooms.
In 2023, Marriott also closed on the acquisition of the City Express brand portfolio, adding 150 more properties and 17,500 rooms into its system.
With the expansion of its offerings, Marriott’s breadth of portfolio has also grown, thereby providing more opportunities for owners, franchisees and guests. Marriott expanded its luxury portfolio, ventured into the affordable midscale segment, increased its collection of branded residences, announced plans for the launch of the MGM Collection with Marriott Bonvoy and continued to grow its all-inclusive offerings.
LUXURY SEGMENT
With 623 hotels across 70 countries, Marriott has a considerable luxury portfolio. In a release, Marriott said it signed a record 58 deals for luxury properties, bringing Marriott’s luxury collection in the global development pipeline to 245 hotels. This includes over 20 hotels slated to open this year.
Through the past year, W Hotels continued its brand refresh and expansion into new markets, including the launch of W Budapest, marking the brand’s debut in Hungary, and W Edinburgh, the brand’s second U.K. property.
Marriott opened its 500th hotel in Greater China with the opening of Rissai Valley, a Ritz-Carlton Reserve. The Ritz-Carlton brand debuted in the U.S. Pacific Northwest with The Ritz-Carlton Portland, while the St. Regis brand debuted in the U.S. Midwest with The St. Regis Chicago.
Three luxury hotels were signed in Vietnam — JW Marriott Trang An Resort & Spa; The Luxury Collection Resort, Hon Thom Island; and The Ritz-Carlton Reserve, Hon Thom Island.
OPPORTUNITIES IN AFFORDABLE MIDSCALE SEGMENT
The past year saw Marriott’s entry into the high-growth affordable midscale segment with the acquisition of the City Express brand portfolio in the Caribbean and Latin America (CALA) region. The deal added 17,500 rooms in Mexico, Colombia, Costa Rica and Chica, increasing Marriott’s presence in CALA by 45%.
The City Express by Marriott is expected to expand into more countries in the CALA region this year.
Marriott is further expanding its presence in the affordable midscale segment with its new StudioRes brand, which aims to offer “reasonably priced, modern comfort” for guests looking for extended stay options in the U.S. and Canada. The brand’s inaugural property broke ground on January 17 in Fort Myers, Fla. The brand has 300 additional potential deals under discussion across 150 markets.
Catering to the increasing consumer demand for affordable accommodations in the EMEA region, Marriott launched a conversion-focused midscale brand, Four Points Express by Sheraton, in September 2023. By the end of the year, Marriott signed six Four Points Express by Sheraton deals in the U.S. and Turkey.
CONVERSIONS AND ALL-INCLUSIVE
Conversions continued to drive Marriott’s growth, accounting for 25% of the group’s room openings. In 2023, Marriott signed a record 184 conversion properties, representing nearly 65,000 rooms, including MGM. Marriott’s collection brands, which include Autograph Collection Hotels, The Luxury Collection and Tribute Portfolio, represented 29% of global conversion rooms signed.
Marriott also expanded its all-inclusive portfolio. The company signed three deals in EMEA, bringing its portfolio to 49 open and pipeline properties in 12 markets and 10 brands, with six more expected to open this year.
BRANDED RESIDENCES
Customer demand drove Marriott’s expansion of branded residence collection to more markets. The group currently has 134 open locations and 115 pipeline residential projects in 49 countries.
In the last five years, Marriott added 48 residential projects under 14 brands and continues to see consumer interest in this segment. Some of the recent openings include The St. Regis Residences, Cairo, Egypt; The Residences at Sheraton Cebu Mactan Resort, Philippines; The Ritz-Carlton Residences, Portland; and The Ritz-Carlton Residences, Mexico City.
APARTMENTS BY MARRIOTT BONVOY
Apartments by Marriott Bonvoy, launched in 2022, enables developers to convert an existing residential building into a new building or integrate it as part of a mixed-use development with a welcome lounge, outdoor areas and other amenities.
The inaugural Apartments by Marriott Bonvoy opened in Casa Costera, Isla Verde Beach, San Juan, Puerto Rico, in December 2023, with more properties signed in the U.S., Saudi Arabia and Italy.
MGM COLLECTION LICENSING DEAL
In July 2023, Marriott announced that Marriott Bonvoy had signed an exclusive, long-term strategic licensing agreement with MGM Resorts International and the creation of the MGM Collection, which is scheduled to launch this year.
The agreement includes 17 of MGM’s resorts, totaling over 40,000 rooms in Las Vegas and other cities in the U.S. With this deal, Marriott’s global room distribution will improve by 2.3%.
