Marriott International and Delonix Group Announce Strategic Cooperation Agreement in Mainland China

Rhea-AI Summary

Marriott International and Delonix Group announced a collaboration to grow Marriott's Tribute Portfolio brand in mainland China. The collaboration includes the opportunity to affiliate over 100 full-service Delonix hotels with Marriott's Tribute Portfolio. The Delonix portfolio currently includes ten hotel brands with over 1,400 hotels open or in the development pipeline. Through this collaboration, Marriott International will franchise its Tribute Portfolio brand in connection with selected Grand New Century and other premium brand hotels managed by Delonix Group. The parties anticipate that at least 100 properties could become part of the Tribute Portfolio over the coming years, and the hotels are expected to be available for booking through both companies' direct booking channels and to participate in the parties' respective loyalty programs.

Insights

Market Research Analyst

The strategic alliance between Marriott International and Delonix Group signifies a substantial expansion of Marriott's Tribute Portfolio in the Chinese market. This move is indicative of Marriott's growth strategy, focusing on brand proliferation in high-growth regions. The integration of at least 100 Delonix properties into the Tribute Portfolio not only diversifies Marriott's offerings but also enhances its competitive edge in China's luxury hotel segment.

From a market perspective, the affiliation is expected to bolster Marriott's market share and brand visibility in mainland China. It also presents a unique value proposition by integrating Delonix's Betterwood membership program with Marriott's loyalty program, potentially increasing customer retention and cross-brand patronage. The synergy between the two loyalty programs could lead to an uptick in customer loyalty metrics, which are crucial for sustained revenue growth in the hospitality industry.

Financial Analyst

Financially, the collaboration is poised to create a robust revenue stream for Marriott through franchising fees and increased bookings via direct channels. The long-term nature of the agreement suggests a stable source of income and an opportunity for Marriott to capitalize on the burgeoning premium hotel market in China. It's important to note that the Chinese travel and hospitality sector is recovering post-pandemic and such strategic partnerships could be instrumental in capturing the rebounding demand.

Investors should closely monitor the performance indicators such as Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) following the integration of Delonix properties. These metrics will provide insights into the financial impact of the collaboration on Marriott's bottom line. Additionally, the cost structure of the affiliation will be a critical factor to evaluate, as it will directly influence the profitability of the venture.

Hospitality Industry Expert

The partnership between Marriott and Delonix is reflective of a broader trend in the hospitality industry where established global brands are seeking local partnerships to navigate regional markets effectively. The strategic move allows Marriott to leverage Delonix's local expertise and existing infrastructure, thereby reducing market entry barriers and accelerating expansion. This local-global synergy is often key to success in diverse markets like China, where consumer preferences and business practices can differ markedly from Western standards.

Additionally, the affiliation with Delonix's premium brands could elevate the perceived quality and service standards of the Tribute Portfolio. This is particularly relevant in China's luxury hotel market, where brand reputation and service excellence are paramount. The collaboration could also serve as a blueprint for similar partnerships in other regions, setting a precedent for how global hospitality brands can achieve growth through strategic regional affiliations.

Collaboration includes opportunity to affiliate over 100 full service Delonix hotels with Marriott's Tribute Portfolio

SHANGHAI, Jan. 23, 2024 /PRNewswire/ -- Marriott International and Delonix Group, one of the leading China-based hospitality companies, today announced a long-term cooperation agreement under which the two companies will work together to grow Marriott's Tribute Portfolio brand in mainland China. The Delonix portfolio currently includes ten hotel brands with over 1,400 hotels open or in the development pipeline. The parties anticipate that at least 100 properties could become part of the Tribute Portfolio over the coming years.

Through this collaboration, Marriott International will franchise its Tribute Portfolio brand in connection with selected Grand New Century and other premium brand hotels managed by Delonix Group. The hotels are expected to be available for booking through both companies' direct booking channels and to participate in the parties' respective loyalty programs.

"Our collaboration with Marriott International demonstrates our confidence in the premium hotel market in China," commented Alex Zheng, Executive Chairman of Delonix Group. "Leveraging the strength of Marriott International's Tribute Portfolio brand, competitive affiliation cost structure, and robust loyalty program in China and globally, as well as Delonix Group's fast-growing Betterwood membership program, we are committed to offer additional value to hotel owners and elevated travel experiences for Chinese travelers. The agreement represents an unprecedented opportunity to drive the long-term growth of Delonix premium brands and Tribute Portfolio in China."

"We are excited about what we can achieve together to best serve the needs of Chinese travelers. Delonix Group is known for its rich experience in developing and operating hotel assets in the local market. This collaboration enables us to leverage the power of the Tribute Portfolio brand, as well as Marriott's best in class loyalty program and strong distribution systems, to further enhance guest experiences, and continue our robust growth across China." Yibing Mao, President, Greater China, Marriott International.

"With more sophisticated Chinese travelers prioritizing authentic destination experiences, we are very excited about this opportunity to bring collection brands like Tribute Portfolio to customers who are looking for distinct, quality lifestyle experiences that resonate with each destination," said Gavin Yu, Chief Development Officer, Greater China, Marriott International.

Delonix Group's hotel portfolio has expanded to 10 core brands with over 1,400 hotels open or in the development pipeline. Its business also encompasses restaurants and entertainment. Grand New Century, established in 2005, is Delonix Group's Chinese-chic, premium hotel brand with an open and pipeline portfolio of 180 properties and over 50,000 rooms in China.

Tribute Portfolio is a growing global family of over 100 character-filled, independent hotels across nearly 30 countries and territories drawn together by a passion for captivating design and a drive to create vibrant social scenes for guests and locals alike.

Note on forward‐looking statements:
All statements in this press release are made as of January 23, 2024. Neither Marriott International nor Delonix Group undertakes any obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release contains "forward‐looking statements" within the meaning of United States federal securities laws, including statements related to future rooms growth; the impact of new brand arrangements; Marriott's development outlook; the availability of the parties' distribution systems and loyalty programs; and similar statements concerning possible or anticipated future events and expectations that are not historical facts. Marriott cautions you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that Marriott may not be able to accurately predict or assess, including the risk factors that Marriott describes in its U.S. Securities and Exchange Commission filings, including its most recent Annual Report on Form 10‐K and Quarterly Reports on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations Marriott expresses or implies in this press release. 

About Delonix Group
Delonix Group is a global hospitality and experiential consumer group, with a primary focus on offline consumer sectors such as hotels, restaurants, and offline entertainment. Delonix's investment portfolio includes the hotel group New Century Hotels and Resorts, as well as the innovative company "Betterwood Lifestyle Lab". Betterwood is a membership system launched by Delonix, committed to reshaping the landscape of experiential consumption. Adhering to an innovative approach, it connects with consumers by creating effective offline experiential scenes. For more information, please visit Delonix's website at www.delonix.group.

Delonix currently owns and operates 10 renowned lifestyle brands: Grand New Century, Maison New Century, Found Retreat, Grand House, Wonderland Resorts, CANARY, Ruby Hotels, MJ Hotel, Yiju Life and MORA SPACE.

Delonix has expanded its presence in the overseas hotel markets, with commercial territory expanding to over 1,400 hotels and 200,000 rooms in operation as well as under development pipeline. Based on user experience, Delonix considers ESG factors as strategic considerations for measuring corporate value. Delonix emphasizes a resilient and sustainable growth path by empowering the real economy through the cultural and tourism industry.

About Grand New Century
Established in 2005, Grand New Century is Delonix Group's premium hotel brand with a Chinese-chic flair. It reflects the elegance of the Tang Dynasty and offers Asian-style hospitality. It is one of the few Chinese hotel brands capable of operating large-scale, full-service projects. Currently, it has an open and pipeline portfolio of 180 properties and over 50,000 rooms in China.

Grand New Century has become a memorable part of memories of the local community due to its deep historical roots. It is also known for providing high-quality experiences and exclusive services.

Grand New Century creates high-end products to meet guests' growing demands for accommodation and consumption, interpreting the images of different cities. In December 2023, it was recognized as the "Popular Hotel Brand of 2023" by the 20^th Golden Pillow Awards. The brand, with its deep historical roots, is known for providing high-quality experiences and exclusive service, and is committed to innovation and creating a business travel experience beyond expectations.

About Marriott International
Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 8,700 properties across more than 30 leading brands in 139 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy^®, its highly awarded travel program. For more information, please visit our website at www.marriott.com. In addition, connect with us on Facebook and @MarriottIntl on X and Instagram.

About Tribute Portfolio®
Tribute Portfolio is a growing global family of character-filled, independent hotels drawn together by their passion for captivating design and their drive to create vibrant social scenes for guests and locals alike. With nearly 100 hotels in nearly 30 countries and territories around the world, Tribute Portfolio has struck a chord with those who seek out independent experiences and crave a connection with the community when traveling. From boutique resorts like Ermita in Cartagena, to hotels in indie-spirited locations like Bellyard in Atlanta, each Tribute Portfolio hotel celebrates its individuality, offering travelers a fresh, often colorful, perspective. For more information, please visit www.tributeportfolio.com and stay connected on Instagram, X, and Facebook. Tribute Portfolio is proud to participate in Marriott Bonvoy®, the global travel program from Marriott International. The program offers members an extraordinary portfolio of global brands, exclusive experiences on Marriott Bonvoy Moments and unparalleled benefits, including free nights and Elite status recognition. To enroll for free or for more information about the program, visit marriottbonvoy.com.

 

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SOURCE Marriott International, Inc.

FAQ

How many hotels are included in the Delonix portfolio?

The Delonix portfolio currently includes ten hotel brands with over 1,400 hotels open or in the development pipeline.

What brands will be involved in the collaboration?

Marriott International will franchise its Tribute Portfolio brand in connection with selected Grand New Century and other premium brand hotels managed by Delonix Group.

How many properties are anticipated to become part of the Tribute Portfolio in the coming years?

The parties anticipate that at least 100 properties could become part of the Tribute Portfolio over the coming years.

What is the goal of the collaboration?

The collaboration aims to drive the long-term growth of Delonix premium brands and Tribute Portfolio in China.

Who commented on the collaboration and what did they say?

Alex Zheng, Executive Chairman of Delonix Group, commented on the collaboration, expressing confidence in the premium hotel market in China and the commitment to offer additional value to hotel owners and elevated travel experiences for Chinese travelers.