Dive Brief:
- Marriott International will convert three U.S. luxury properties, located within “some of the most sought-after destinations in the country,” to brands within the Marriott Bonvoy portfolio, the hotel company announced Monday.
- This summer, Marriott will add The Resort at Pelican Hill in Newport Beach, California; Turtle Bay Resort on Oahu, Hawaii; and an undisclosed luxury hotel in Midtown Manhattan to its reservation system.
- With the conversions, Marriott continues its strategic expansion within the luxury segment, which is gaining momentum as traveler demand shifts, Marriott Chief Development Officer for U.S. Luxury Brands and Global Mixed-Use Dana Jacobsohn told Hotel Dive.
Dive Insight:
The Resort at Pelican Hill, a 504-acre resort in Newport Beach, is slated to join Marriott’s luxury portfolio on July 1, according to the hotel company. Marriott will manage the Irvine Company-owned property, which is expected to be rebranded under the St. Regis flag at a later date.
Marriott will also convert the 450-room Turtle Bay Resort located on the North Shore of Oahu and rebrand the property under The Ritz-Carlton. Marriott assumed management of the property after Host Hotels & Resorts acquired it from Blackstone Real Estate for $725 million last week.
And on June 5, Marriott will convert a hotel in Midtown Manhattan near Times Square to its luxury portfolio. The hotel company declined to provide additional details about the property.
With the conversions, Marriott adds more than 1,000 rooms to its system and brings its luxury portfolio to more than 510 hotels. Luxury properties make up roughly 10% of Marriott’s open rooms and pipeline rooms, according to the company.
Some 234 luxury hotels are in Marriott’s signed pipeline, Marriott CFO and EVP of Development Leeny Oberg said in the Monday release, adding that the recent conversion deals “underscore [Marriott’s] commitment to luxury.”
In September, the hotel company announced it plans to add between 230,000 and 270,000 net rooms between year-end 2022 through 2025, with a focus on the luxury segment, which is expected to see increased traveler demand and spending in the coming years.
“Luxury continues to be a top priority for Marriott International, as we see traveler demand for the segment increase around the world,” Jacobsohn told Hotel Dive. “Many travelers today are looking for more than just a hotel stay — they want world-class service and immersive experiences — and with seven luxury brands, Marriott is well positioned to provide that for them.”
Alongside luxury, Marriott is focused on growing its midscale portfolio. The company forayed into the U.S. midscale segment in June 2023 with extended stay brand StudioRes, and CEO Anthony Capuano touted a new transient midscale brand at year-end 2023.
On Monday at the NYU International Hospitality Industry Investment Conference, Marriott announced the formerly teased brand is working under the name Project Mid-T by Marriott and is focused on conversion opportunities in the U.S. and Canada, Hotel Management first reported, and Marriott confirmed to Hotel Dive.
