New hotels are projected to drive over $50 billion in real estate investments and create more than 150,000 jobs
DAVOS, Switzerland and BETHESDA, Md., Jan. 23, 2015 /PRNewswire/ -- Marriott International (NASDAQ: MAR) continues its rapid global expansion, creating new opportunities. The company today announced that by the end of 2015, newly opened and under-development hotels will push its total room count beyond one million. These upcoming hotels will generate over $50 billion in real estate investments globally through Marriott's owner partners and create more than 150,000 hotel jobs.
Arne Sorenson, President and CEO of Marriott International (Arne Sorenson), said: "A key focus at the World Economic Forum in Davos is job creation and economic growth. Marriott contributes meaningfully to the economy by partnering with owners in over 100 countries to operate or develop hotels. Our growth reflects a major international trend, with strong expansion in the U.S. and many global markets."
"In 2014 alone, Marriott signed agreements to open over 650 new hotels. In the coming years, we will add 100,000 hotel rooms worldwide, signing nearly two new hotels per day. The expected investment by our owner partners in Marriott-branded hotels shows their confidence in our brands, mirroring customer preference. Our growth also boosts local economies, construction industries, and creates direct employment and new business opportunities," Sorenson said.
A study by the German Agency for International Cooperation (GIZ) on the economic and community benefits of hotels, using Peru’s JW Marriott Lima as an initial case, found that the 350-room, 300-guestroom, 10-meeting-room property contributes over $10 million annually to Peru’s economy through salaries, goods, and services.
In developing regions such as Haiti and Africa, Marriott works closely with hotel owners and non-governmental organizations to prepare for hotel openings and hire locals to manage and run new properties. Haiti’s new Marriott Port-au-Prince Hotel (Marriott Port-au-Prince) is set to open in February, creating over 200 local jobs.
"Globally, nearly 1 billion people[1]have joined the middle class, fueling unstoppable demand for business and leisure travel. The barriers to travel are also falling. Recently, China and the U.S. signed a landmark agreement allowing ten-year, multiple-entry visas. Since this change, visa applications from China have risen nearly 39%, with each traveler spending an average of $7,000 — indicating tremendous potential for new tourism and economic growth," Sorenson noted.
"Clearly, efforts to drive growth, create economic opportunity, and encourage travel yield significant benefits not only for the companies involved but also for communities around the world," he added.
Marriott Executive Vice President and Chief Development Officer Tony Capuano said the company has maintained remarkable and steady growth.
"In 2014, we added over 46,000 rooms globally, achieving record overall growth. We also signed agreements for over 650 new hotels, adding 100,000 rooms, and reached a historic high of 240,000 rooms under development. As these hotels open in the coming years, Marriott will expand from 80 to over 100 countries and territories. This growth continues the four-year surge in demand for new Marriott hotels and strengthens our positive outlook."
"Our success stems from several factors, including an efficient leadership structure connecting local development teams with partners and investors, a strong development team, and the introduction of new brands. Last year, new brands accounted for nearly 40% of new rooms. Owners and we are excited about new brands such as Moxy, AC Hotels by Marriott, Autograph Collection, and Edition, along with our recent acquisition of the Protea brand in Africa."
Marriott also showed strong growth across regions. In North America, the company expanded into secondary and tertiary markets while strengthening its presence in major cities. In Asia, as new hotels open, the region’s footprint is expected to more than double, as will Marriott’s overall presence in the Asia-Pacific. In the Middle East and Africa, strong momentum will continue, with expansion exceeding 75%. In the Caribbean and Latin America, overall scale is expected to grow by nearly 50%. In Europe, ambitious growth plans include launching several brands, such as Moxy, a trendy hotel brand targeting a new generation and offering a fresh choice for budget-conscious travel.
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Forward-Looking Statements:This press release contains “forward-looking statements” within the meaning of the U.S. Federal Securities Laws, including Marriott’s expectations regarding 2015 room additions or rooms under development, future owner investments and job creation, regional expansion plans, and other anticipated activities or predictions not based on historical facts. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including changes in supply and demand for hotel rooms, competition in the hotel industry, owner and guest relationships, capital for hotel development, and other risk factors listed in our latest quarterly report on Form 10-Q. Any of these factors may cause actual results to differ materially from those expressed or implied herein. We make these forward-looking statements as of the date of this press release and assume no obligation to update them publicly, whether as a result of new information, future events, or otherwise.
About Marriott International
Marriott International (NASDAQ: MAR) is the world’s leading global hospitality company, headquartered in Bethesda, Maryland, USA. The company operates or franchises more than 4,100 hotels in 79 countries and territories with fiscal year 2013 revenues of over $13 billion. It manages hotels under 18 brands, including Marriott Hotels, The Ritz-Carlton, JW Marriott, Bulgari Hotels & Resorts, EDITION, Renaissance Hotels, Gaylord Hotels, Autograph Collection Hotels, AC Hotels by Marriott, Moxy Hotels, Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, TownePlace Suites, Protea Hotels, Marriott Executive Apartments, and Marriott Vacation Club timeshare resorts. Marriott International employs approximately 330,000 associates worldwide and is consistently recognized as one of the best places to work and for outstanding corporate citizenship. The company also operates award-winning loyalty programs, Marriott Rewards® and The Ritz-Carlton Rewards®, with more than 47 million members. For more information or reservations, visit the Marriott website:www.marriott.com.cn, or www.marriottnewscenter.com for the latest news.
[1] http://www.theguardian.com/news/datablog/2014/sep/24/global-middle-class-nears-one-billion-mark