Marriott To Greatly Expand Apartment-Only Portfolio Worldwide
Marriott International is plowing ahead with its plan to build multifamily developments under its hotel banners.
The world's largest hotel company already has 90 branded residential developments in its portfolio, and plans to grow that number by 70% in the next four years, Hotel Business reports. It already has permits and contracts signed for 60 such buildings.
The incorporation of condos or apartments into hotel projects is not all that new, but Marriott has experienced considerable success with its stand-alone Ritz-Carlton Residences towers in cities such as Boston and Miami. The hotel giant has already started licensing brands such as St. Regis and W (both acquired in its takeover of Starwood Hotels & Resorts Worldwide), as well as Edition and non-luxury brands Marriott Hotels, Westin, Sheraton and Autograph Collection.
Construction has begun on the first stand-alone St. Regis residential development in the suburbs of New York City, Hotel Business reports, and is soon to begin at a second location in Boston. The development includes residential portions at 12 of its hotels, with 12 more such mixed-use projects in the pipeline.
Marriott said growing demand for hotel-style amenities in luxury apartment buildings is driving its expansion, betting that the highest-paying customers will associate well-known luxury brands with the standard of living they desire. The company estimates that 70% of its residential projects will be considered luxury developments by 2022.
The company is partnering with residential developers for such projects, such as Cronin Group for its Boston St. Regis location. Local expertise will likely be key, considering Marriott's ambitions are global — it already has residential projects open in 17 other countries, and plans to hit 40 by 2022.