After foraying into the affordable midscale segment with its City Express by Marriott, Marriott International now plans to launch a new affordable, midscale, extended-stay brand.
In connection with the 2023 NYU International Hospitality Industry Investment Conference, Marriott announced plans to expand its presence in the midscale segment following the launch of its City Express by Marriott in Latin America.
The new brand, which is yet to be named, is being referred to as Project MidX Studios. In a statement, the hotel giant said the new brand will deliver “reasonably priced modern comfort” for those looking for longer stay options in the U.S. and Canada.
Project MidX Studios is the latest entrant to the emerging crop of extended-stay brands developed by other major hotel companies. Hilton recently announced the launch of Project H3, a lower-midscale product. In 2022, Wyndham and BWH launched ECHO Suites and @Home by Best Western.
Having already established its presence in the extended-stay tier with brands like Residence Inn by Marriott, Element by Westin, TownePlace Suites by Marriott, Marriott Executive Apartments and more recently Apartments by Marriott Bonvoy, Marriott said it has utilized its knowledge to create a new product that will reduce building and operating costs for owners and franchisees.
“Marriott has long believed in having the right accommodations in compelling destinations at the right price point. Whether our guests are traveling for business, leisure or a mix of both, our portfolio of 31 brands offers something for everyone. As consumers look for new, flexible accommodation solutions, we are thrilled to announce our plans to launch an affordable midscale extended-stay offering to meet the needs of guests seeking long-term comforts at a moderate price point,” said Marriott International President and CEO Anthony Capuano.
Raleigh, N.C.-based Concord Hospitality will collaborate with California-based real estate private equity company Whitman Peterson to break ground on three Project MidX Studios this year, said Mark Laport, president and CEO of Concord Hospitality. The projects are expected to open in late 2024 or early 2025.
“The team created Project MidX Studios to reach both new customers and new markets. We are excited to join forces with Concord Hospitality and Whitman Peterson on our first three projects and are in discussions with owners for more than 250 new development opportunities under this brand,” said Leeny Oberg, chief financial officer and executive vice president, development for Marriott International.
BENEFITS FOR OWNERS
Slated to be the most affordable cost-per-room product in the U.S. and Canada, Project MidX Studios will allow accelerated speed-to-market with a low cost to build. The prototype model will have a build cost of $13 million to $14 million and cover 54,000 square feet of the total building area for 124 studios.
The brand will have a light operational cost model for owners and franchisees.
Project MidX Studios will be a part of the Marriott Bonvoy loyalty platform and leverage Marriott’s Global Sales Organization, which includes Marriott’s dedicated Extended Stay sales team and digital platforms like Marriott.com and the Marriott Bonvoy app to generate direct bookings.
The new brand will offer customized Marriott Bonvoy redemption options.
“Marriott has been working closely with owners and franchisees to develop a product that has a compelling value proposition and a highly efficient operating model,” said Noah Silverman, Marriott International’s global development officer for the U.S. & Canada. “With trends towards longer-stay travel and increased work flexibility, Marriott is utilizing its experience in extended-stay to deliver a fresh solution to meet the needs of a growing customer base, backed by Marriott’s powerful demand engines and revenue systems. With our plans for Project MidX Studios, we will have an extended stay product in every lodging tier — from affordable midscale to upper-upscale and luxury—for our customers and our owners and franchisees.”
BENEFITS FOR CUSTOMERS
The brand is expected to deliver a “streamlined, light-touch, digital-first operating model” focusing on the needs of a budget-conscious consumer, with conveniences like pay-and-go retail and check-in with Marriott Mobile Key.
The brand is designed for guests looking for flexible, affordable accommodations for extended stay, usually for 20 or more nights, and those planning to pay roughly $80 per night, depending on the demand and market.
Project MidX Studios will feature spacious suites with both single or double queens, in-room kitchens and closet space with on-site guest laundry, pet-friendly facilities and a gym.