Marriott’s development pace continues to rise

by | 30 Nov 2022 | Pipeline

Pictured: The recent opening of Marriott International’s new headquarters in Bethesda, Maryland.

Marriott International is continuing to up its development rate, with a further 14,000 keys added during Q3 2022.

The latest signings included approximately 8,700 guestrooms in international markets and nearly 3,900 conversion rooms.

Steady rise

At quarter end, Marriott’s worldwide development pipeline totalled 3,024 properties and more than 502,000 rooms, including roughly 33,300 rooms approved, but not yet subject to signed contracts.

This represents a 3% site increase from the previous quarter’s 2,950 properties and a 1% rise in terms of keys from Q2’s 495,000.

Construction cumulation

Approximately 204,800 rooms across 1,039 properties equating to 41% of the pipeline, were under construction as of the end of the 2022 third quarter. This represents a 1 % increase on Q2’s 203,300 keys.

233 properties with roughly 33,300 rooms were approved for development, but not yet subject to signed contracts.

Latest additions

The company added 77 properties (14,071 rooms) to its worldwide lodging portfolio during the 2022 third quarter, including nearly 3,900 rooms converted from competitor brands and approximately 8,700 rooms in international markets.

35 properties (7,440 rooms) exited the system during the quarter, including roughly 5,200 rooms in Russia. At quarter end, Marriott’s global lodging system totalled nearly 8,200 properties, with over 1,507,000 rooms, equating to a 1% and 0.5% uptick respectively from Q2’s 8,100 properties and over 1,500,000 keys.

Strategic wins

During this quarter Marriott also agreed a $100 million deal to acquire a major part of Mexican firm Hoteles City Express’ portfolio. This encompassed the sale of the Mexican group’s five brands: City Express, City Express Plus, City Express Suites, City Express Junior and City Centro.

The US firm’s CEO, Anthony Capuano, analysed: “In mid-October, we announced that we signed an agreement to acquire the City Express brand portfolio, marking our entry into the affordable midscale segment. We see meaningful opportunities to further expand the brand in the CALA region and globally, as we have successfully done with other brand acquisitions. Upon closing, we look forward to offering our guests more stay options and our owners and franchisees new opportunities to grow their portfolios.”

Marriott also recently leveraged its continuing growth to inaugurate a new 21-storey, 785,000 sq ft global headquarters (pictured) in Bethesda, Maryland, USA

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ABOUT THE CHAIN

 

Marriott International is based in Bethesda, Maryland and encompasses a portfolio of more than 7,000 properties around the world.

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