Marriott International Announces Robust Growth Across the Caribbean and Latin America in 2023

Rhea-AI Summary

Marriott International reports strong growth in the Caribbean and Latin America region in 2023, doubling deal signings and adding over 170 properties. The company nearly doubled its number of organic deal signings, reaching a solid pipeline of 24,000 rooms. Marriott now has nearly 500 properties and almost 87,000 rooms across 37 countries, making it the largest hotel company in the region. The company focused on luxury, all-inclusive, conversions, and branded residences, with notable openings and expansions in various segments. Marriott Bonvoy program also saw significant growth with over 6 million members and strategic partnerships.

Insights

Market Research Analyst

The expansion of Marriott International in the Caribbean and Latin America (CALA) region signifies a strategic growth in emerging markets, which is a strong indicator of the company's long-term business strategy. The nearly doubled number of organic deal signings and the significant pipeline of 24,000 rooms underscores a robust market demand and potential revenue growth. The company's focus on diversifying its portfolio, from luxury to midscale and all-inclusive segments, aligns with broader industry trends of catering to a variety of consumer preferences and income levels.

Marriott's strategic acquisition of the City Express brand portfolio, targeting the high-growth affordable midscale segment, is particularly noteworthy. This acquisition not only expands Marriott's footprint by approximately 45 percent in the region but also taps into a market segment that is rapidly growing due to an emerging middle class in these countries. The move could potentially increase occupancy rates and revenue per available room (RevPAR), key performance indicators in the hospitality industry.

Financial Analyst

The financial implications of Marriott's expansion in the CALA region are multi-faceted. The announcement of 57 new transactions and the addition of over 170 properties in 2023 suggest a capital-intensive phase, with investments directed towards acquisitions, new developments and conversions. The increase in Marriott's portfolio size could lead to economies of scale, reducing operational costs per room and potentially increasing profit margins over time.

Investors should note the conversion trend, where nearly 35 percent of Marriott's room signings were conversions of existing properties. This strategy can be cost-effective compared to new builds, as it often involves lower capital expenditure and shorter time frames to market. The conversions also provide a rapid way to increase brand presence and leverage existing infrastructure, which may result in quicker returns on investment.

Hospitality Industry Expert

The growth of Marriott's all-inclusive and branded residences portfolios in CALA addresses evolving traveler preferences for convenience and experiential luxury. The all-inclusive model, in particular, has gained traction as it simplifies the vacation experience for consumers and can generate consistent revenue streams for operators. Marriott's expansion in this segment, with 31 open properties and 18 additional in the pipeline, positions the company to capitalize on this demand.

Branded residences, combining luxury living with hotel-like amenities, are becoming increasingly popular. Marriott's development of 115 residential projects globally, with several anticipated openings in CALA in 2024, reflects a strategic investment in high-value real estate that can attract affluent customers and provide an additional revenue stream through property sales and ongoing management fees.

The region continued meaningful expansion across all segments from midscale to all-inclusive, and residential to luxury; conversions remained a main driver of growth.

PLANTATION, Fla., Feb. 26, 2024 /PRNewswire/ -- Following its recent announcement of strong global net rooms growth and a record year of global rooms signings, Marriott International today announced a year of robust room signings and additions across the Caribbean and Latin America (CALA) in 2023. The company nearly doubled its number of organic deal signings in the region versus prior year, signing 57 transactions and nearly 7,300 rooms in 2023 to reach a solid pipeline of 24,000 rooms across the region at the end of last year.

In 2023, the company added over 170 properties to Marriott's portfolio in CALA, growing its footprint to nearly 500 properties, including hotels and residences, and nearly 87,000 rooms across 37 countries and territories, making Marriott the largest hotel company in the region based on open rooms and pipeline.

At year-end, Marriott's hotel pipeline in CALA stood at 155 properties and 24,000 rooms, which will further enhance the company's leadership position in the luxury segment across the region, unveil new offerings in the affordable midscale segment, and increase its offering of all-inclusive properties.

"We are pleased to report a great year of growth for Marriott in the CALA region, with strong development activity in 2023. With continuing momentum in conversions, and our ongoing expansion across numerous segments, including luxury and all-inclusive, we remain focused on providing our guests and owners with more best-in-class options" said Laurent de Kousemaeker, Chief Development Officer for Marriott International in the Caribbean and Latin America. "We see exceptional opportunities in the region across all segments, but particularly in midscale with the new City Express by Marriott brand, opening up fresh possibilities in this segment throughout the region."

City Express by Marriott

In 2023, the company strategically positioned CALA as the launchpad for the company's entry into the high-growth affordable midscale segment with the acquisition of the City Express brand portfolio. With 150 properties and approximately 17,500 rooms across Mexico, Costa Rica, Colombia, and Chile, the deal increased Marriott's footprint in the region by approximately 45 percent. In 2024, the City Express by Marriott brand is expected to further expand with new properties across the region.

Luxury Growth in the Region

With 60 properties across six of the seven global luxury brands of the company, Marriott remains a leading option for luxury travelers in the region, offering a broad portfolio of options from pristine beaches to city escapes. Opening highlights in 2023 included the debut of The Riviera Maya EDITION at Kanai (Mexico) in November 2023, and The St. Regis Kanai Resort (Mexico) earlier in the year. Anticipated luxury openings in 2024 include the JW Marriott Sint Maarten Beach Resort (Sint Marteen), Almare, a Luxury Collection All-inclusive Resort Isla Mujeres (Mexico), Nekajui, a Ritz-Carlton Reserve, Papagayo (Costa Rica), The St. Regis Aruba (Aruba), W Punta Cana, All-Inclusive, The St. Regis Cap Cana Resort (Dominican Republic), and W Sao Paulo (Brazil). The region holds a luxury pipeline of 34 properties and over 5,000 rooms.

Accelerating Momentum in Conversions

Hotel conversions continue to have momentum in the CALA.   Nearly 35 percent of Marriott's rooms signings in the region in 2023 were conversions, including the recently announced Villa Lapas, Autograph Collection (Costa Rica), Aloft Guadalajara Country Club, Sheraton Guadalajara Expo and Delta Hotels Puebla (Mexico), and Las Terrenas, Autograph Collection (Dominican Republic). Hoteliers and investors are leveraging the efficiencies and advantages of renovating and rebranding existing properties throughout the region, further expanding the breadth of Marriott Bonvoy's portfolio of more than 30 global leading brands.

All-Inclusive by Marriott Bonvoy

Marriott's all-inclusive resort portfolio in the region continues to meet consumer demand. With 31 open all-inclusive properties in CALA located across nine markets (Mexico - Riviera Nayarit & Cancun, Jamaica, Barbados, Antigua & Barbuda, St Lucia, Costa Rica, Dominican Republic, Grenada and Brazil) and four brands (Autograph Collection, Delta, Westin, and Luxury Collection), and 18 additional properties in the signed pipeline, the company is providing guests more all-inclusive offerings than ever before. The company recently signed the second Ritz-Carlton All-Inclusive property in the region to be located on the shores of Yanuna, Dominican Republic, along with a Luxury Collection All-Inclusive Resort to bring unparalleled luxury to the Dominican Republic.

Expected all-inclusive openings for 2024 in the region include Almare, a Luxury Collection All-inclusive Resort Isla Mujeres (Mexico), W Punta Cana, All-Inclusive (Dominican Republic), and the rebranding of several Elegant Hotels properties (Treasure Beach, The House, and Waves) into the Autograph Collection brand in Barbados, which will bring Marriott's global all-inclusive roster to 49 open and pipeline properties across 12 markets and 10 brands. Six of the pipeline properties are slated to open in 2024.

Branded Residences Portfolio

The popularity of branded residences in CALA is experiencing a surge of customer demand. Marriott currently offers 15 open locations in 11 markets across the region. Anticipated residential openings in 2024 include The Residences at The St. Regis Kanai Resort (Mexico), Nekajui, a Ritz-Carlton Reserve Residence, Papagayo (Costa Rica), The Residences at The St. Regis Cap Cana Resort (Dominican Republic), and the W Residences Sao Paulo (Brazil). Globally, the company has a pipeline of 115 residential projects.

Marriott Bonvoy

Marriott Bonvoy, the company's award-winning travel program, boasts a thriving community of over 6 million members in CALA and keeps growing to offer an even more enriching travel experience for its members, with new strategic partnerships, and increased ways to earn and accumulate points across the region. Announced in May 2023, the company entered a strategic collaboration with Rappi, the multilatina technology company, further enhancing the unparalleled advantages for its members and enabling the company to connect with Rappi's more than 20 million users across Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Peru, and Uruguay.

As Marriott continues to expand its footprint and offerings in CALA, the region is uniquely positioned to capitalize on the breadth and depth of its portfolio, with an array of growth and development opportunities.  

Note on Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of United States federal securities laws, including statements related to deal signings, expected future project openings and portfolio growth; our development pipeline; the pace and momentum of development activity; future growth opportunities; demand trends and expectations; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risk factors that we identify in our U.S. Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of the date of this press release and undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About Marriott International

Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 8,800 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, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on X and Instagram.

 

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SOURCE Marriott International, Inc.

FAQ

How many properties did Marriott add to its portfolio in the Caribbean and Latin America region in 2023?

Marriott added over 170 properties to its portfolio in CALA in 2023.

How many rooms were added to Marriott's pipeline in the Caribbean and Latin America region in 2023?

Marriott added nearly 7,300 rooms in 2023, reaching a solid pipeline of 24,000 rooms by the end of the year.

In which segment did Marriott enter with the acquisition of the City Express brand portfolio?

Marriott entered the high-growth affordable midscale segment with the acquisition of the City Express brand portfolio.

How many properties does Marriott have in its luxury pipeline in the region?

Marriott holds a luxury pipeline of 34 properties and over 5,000 rooms in the region.

How many open all-inclusive properties does Marriott have in the Caribbean and Latin America region?

Marriott has 31 open all-inclusive properties in CALA across nine markets and four brands.