As the hotel sector continues to recover from the pandemic amid evolving consumer demands, how do hotel companies plan to adapt? For Marriott, it seems the focus is on luxury, technology and ESG.
Luxury and the Potential of Mid-Scale
The luxury segment has led the post-Covid recovery as global wealth continues to grow and travelers in the segment remain largely untouched by cost-of-living crises. The segment has been a cornerstone of Marriott's success, with only about 10 per cent of the company’s million and a half rooms globally sitting in the luxury tier but with the segment representing between 20 to 25 per cent of Marriott’s global fees. And it seems Marriott CEO Anthony Capuano plans to build on that.
Speaking at the Alvarez & Marsal European Hospitality Investment Conference 2023, he stated: “The strength we continue to see in pricing the luxury tier is really encouraging. The wealthy around the world have a ravenous appetite for traveling, and we see that in the performance of our luxury portfolio.
We have more than 500 hotels open and operating in the luxury tier today and we have nearly 300 luxury hotels in the pipeline. We will continue to do everything in our power to grow that luxury portfolio and extend our lead in luxury.”
However, he notes that Marriott will also pay attention to the mid-scale segment, adding resources to accelerate its growth in the mid-scale tier.
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