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Marriott (MAR) Plans Expansion of Apartments by Marriott Bonvoy
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Marriott International, Inc. (MAR - Free Report) opened doors of its debut brand, Apartments by Marriott Bonvoy, in December 2023, with the intention of expanding its product portfolio with premium and luxury apartment-style accommodations. The positive approach toward its first property launch, Casa Costera, Isla Verde Beach, in San Juan, Puerto Rico encouraged the announcement of the upcoming property openings under this brand.
Marriott is all set to bring Apartments by Marriott Bonvoy in the United States, Italy and the Kingdom of Saudi Arabia, signing development agreements for the respective new openings.
The properties under this brand offer homely experience to its guests, housing amenities comprising private bedrooms, a separate living room, full kitchen, and in-unit washer and dryer. From an owner’s point of view, these properties offer residential and hotel developers a distinctive opportunity to transform an existing building, pursue a new build or integrate as part of such a multi-use property. Furthermore, every project will be leveraging Marriott’s brand image and offer benefits under the loyalty program, Marriott Bonvoy.
Apartments by Marriott Bonvoy is subject to further expansion opportunities, with the company expecting to expand the global presence through 2024 and beyond.
Details on the Upcoming Openings
In the US, Mariott signed development agreements in Detroit, MI, and St. Louis, MO. The Detroit location’s development agreement is inked with Roxbury Group. The construction will be made by converting The Plaza Apartments in Midtown Detroit. This property is expected to open in the third quarter of 2024. The St. Louis location’s development agreement is anticipated to be made with Midas Hospitality.
In Italy, the company signed development agreements in Courmayeur, Aosta Valley, with Castello Sgr for the opening of Le Géant, an Apartments by Marriott Bonvoy property.
In Saudi Arabia, MAR inked a development agreement with NEOM for the brand’s debut in Sindalah, an island located on the northwest coast of the country among the Red Sea. This marks the fourth collaboration between Marriott and NEOM for the construction of property on the island. The opening is expected in 2024.
Expansion Initiatives Bode Well
Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. The company plans to significantly expand its global portfolio of luxury and lifestyle brands. By leveraging the demand patterns, it consistently focuses on expanding its footprint, primarily in Asia, Latin America, the Middle East and Africa.
Marriott, which shares space with Hyatt Hotels Corporation (H - Free Report) , Choice Hotels International, Inc. (CHH - Free Report) and Hilton Worldwide Holdings Inc. (HLT - Free Report) , has been benefiting from the expansion of global footprint across diversified brand portfolios. Despite volatile economic environment, the company’s global development pipeline comprised almost 3,400 hotels and approximately 573,000 rooms at the end of 2023, showcasing a remarkable 15% uptick compared with the prior year.
A Brief Review of the Above-Mentioned Stocks
Hyatt: The company is benefiting from solid leisure-transient demand, recovery in business travel demand, increased system-wide group travel and favorable pricing. H’s focus on enriching its portfolio through strategic initiatives allows it to deliver unique experiences to its guests, expand its global presence and strengthen the role of the Hyatt loyalty program. Furthermore, its emphasis on asset-light deals to broaden presence in key markets and service platforms bodes well.
Choice Hotels: The company’s uptrend is attributable to synergies through the Radisson Hotels Americas integration and momentum in the conversion projects pipeline. The focus on continual expansion strategies through acquisitions and franchise agreements bodes well. CHH focuses on expansion strategies, enhancement of the mid-scale brand, and transformation and advancement of the Comfort brands to drive growth. Furthermore, its recent announcement on restyling and enhancing the on-property experiences in five out of the eight brands across its upscale and upper upscale portfolio is encouraging.
Hilton: The boost in the company’s performance is primarily driven by an upward trend in travel and tourism. Owing to strong leisure demand and recovery in international inbound travel, the company is witnessing substantial RevPAR gains in Europe, the Middle East and Africa region and expects the momentum to persist for some time. Moreover, HLT focus on unit expansion, hotel conversions, strategic partnerships and loyalty programs bode well. The company expects positive development trends to continue on the back of new development and conversion opportunities.
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Marriott (MAR) Plans Expansion of Apartments by Marriott Bonvoy
Marriott International, Inc. (MAR - Free Report) opened doors of its debut brand, Apartments by Marriott Bonvoy, in December 2023, with the intention of expanding its product portfolio with premium and luxury apartment-style accommodations. The positive approach toward its first property launch, Casa Costera, Isla Verde Beach, in San Juan, Puerto Rico encouraged the announcement of the upcoming property openings under this brand.
Marriott is all set to bring Apartments by Marriott Bonvoy in the United States, Italy and the Kingdom of Saudi Arabia, signing development agreements for the respective new openings.
The properties under this brand offer homely experience to its guests, housing amenities comprising private bedrooms, a separate living room, full kitchen, and in-unit washer and dryer. From an owner’s point of view, these properties offer residential and hotel developers a distinctive opportunity to transform an existing building, pursue a new build or integrate as part of such a multi-use property. Furthermore, every project will be leveraging Marriott’s brand image and offer benefits under the loyalty program, Marriott Bonvoy.
Apartments by Marriott Bonvoy is subject to further expansion opportunities, with the company expecting to expand the global presence through 2024 and beyond.
Details on the Upcoming Openings
In the US, Mariott signed development agreements in Detroit, MI, and St. Louis, MO. The Detroit location’s development agreement is inked with Roxbury Group. The construction will be made by converting The Plaza Apartments in Midtown Detroit. This property is expected to open in the third quarter of 2024. The St. Louis location’s development agreement is anticipated to be made with Midas Hospitality.
In Italy, the company signed development agreements in Courmayeur, Aosta Valley, with Castello Sgr for the opening of Le Géant, an Apartments by Marriott Bonvoy property.
In Saudi Arabia, MAR inked a development agreement with NEOM for the brand’s debut in Sindalah, an island located on the northwest coast of the country among the Red Sea. This marks the fourth collaboration between Marriott and NEOM for the construction of property on the island. The opening is expected in 2024.
Expansion Initiatives Bode Well
Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. The company plans to significantly expand its global portfolio of luxury and lifestyle brands. By leveraging the demand patterns, it consistently focuses on expanding its footprint, primarily in Asia, Latin America, the Middle East and Africa.
Marriott, which shares space with Hyatt Hotels Corporation (H - Free Report) , Choice Hotels International, Inc. (CHH - Free Report) and Hilton Worldwide Holdings Inc. (HLT - Free Report) , has been benefiting from the expansion of global footprint across diversified brand portfolios. Despite volatile economic environment, the company’s global development pipeline comprised almost 3,400 hotels and approximately 573,000 rooms at the end of 2023, showcasing a remarkable 15% uptick compared with the prior year.
A Brief Review of the Above-Mentioned Stocks
Hyatt: The company is benefiting from solid leisure-transient demand, recovery in business travel demand, increased system-wide group travel and favorable pricing. H’s focus on enriching its portfolio through strategic initiatives allows it to deliver unique experiences to its guests, expand its global presence and strengthen the role of the Hyatt loyalty program. Furthermore, its emphasis on asset-light deals to broaden presence in key markets and service platforms bodes well.
Choice Hotels: The company’s uptrend is attributable to synergies through the Radisson Hotels Americas integration and momentum in the conversion projects pipeline. The focus on continual expansion strategies through acquisitions and franchise agreements bodes well. CHH focuses on expansion strategies, enhancement of the mid-scale brand, and transformation and advancement of the Comfort brands to drive growth. Furthermore, its recent announcement on restyling and enhancing the on-property experiences in five out of the eight brands across its upscale and upper upscale portfolio is encouraging.
Hilton: The boost in the company’s performance is primarily driven by an upward trend in travel and tourism. Owing to strong leisure demand and recovery in international inbound travel, the company is witnessing substantial RevPAR gains in Europe, the Middle East and Africa region and expects the momentum to persist for some time. Moreover, HLT focus on unit expansion, hotel conversions, strategic partnerships and loyalty programs bode well. The company expects positive development trends to continue on the back of new development and conversion opportunities.