Marriott highlights potential areas of growth

Marriott will present the company’s three-year financial model through 2025 at its meeting with institutional investors and security analysts at the W South Beach in Miami Beach, Florida. The company said, “As part of the presentation of its three-year financial model, Marriott will discuss the priority it is placing on generating valuable global rooms growth over the long term. The company will discuss its efforts to grow the distribution of its more than 30 leading brands, while also introducing new brands and offerings that meet customers’ evolving needs. It will highlight the following key priorities that support its growth plans – midscale, extended stay, leisure and luxury, and conversions. The company expects to follow a tailored development approach in its expansion in the affordable midscale segment, recognizing differences by continent to accommodate regional customer and owner expectations. To date, Marriott has completed an acquisition (the City Express brand portfolio) in the Caribbean and Latin America region, created a midscale extended stay brand in the U.S. & Canada region (StudioRes) and, just this morning, announced a new brand for its Europe, Middle East and Africa region (Four Points Express by Sheraton). The company also plans to further expand in the extended stay segment, having recently announced the launch of Apartments by Marriott Bonvoy. Marriott is also emphasizing luxury and leisure offerings. It is currently leading in luxury distribution globally, with nearly 500 open luxury hotels and 17 percent of the market, approximately 1.5 times the size of its next largest competitor. The company remains focused on extending its leading position with another 225 luxury properties in the pipeline. Conversions, particularly multi-unit conversions, are also a critical piece of the company’s overall growth strategy. In the first six months of 2023, conversions accounted for 63 percent of room signings, including the MGM Resorts transaction, and 25 percent excluding MGM. Continued robust growth in Marriott’s branded residential business, cobrand credit card offerings and other adjacencies such as The Ritz-Carlton Yacht Collection are also expected to enhance the company’s fee growth. Marriott expects to continue its disciplined approach to investing capital in long term value enhancing projects that drive cash flow growth.”