At the Americas Lodging Investment Summit, Marriott International announced the company had a record year of global signings with 52 percent more organic rooms signed in 2023 than in 2022. The company also announced that it achieved net rooms growth of 4.7 percent in 2023.
During 2023, the company signed a record number of organic management and franchise agreements—an average of nearly 2.5 deals a day—representing approximately 164,000 rooms globally.
In the United States and Canada, Marriott's largest region, the company signed a record 91,000 rooms, 37,000 of which were the result of the company's licensing agreement with MGM Resorts International. The company also saw robust signings growth outside of the U.S. & Canada with a record of nearly 73,000 organic rooms signed across 74 countries and territories, with particularly strong signings in China, Vietnam, Japan, the United Arab Emirates, Mexico, Turkey, Saudi Arabia and India. At year-end 2023, Marriott's global development pipeline totaled nearly 3,400 hotels and roughly 573,000 rooms, an increase of more than 15 percent over a year ago.
At the end of 2023, Marriott's worldwide system consisted of nearly 8,800 properties and more than 1,597,000 rooms in 139 countries and territories. Marriott added more than 400 properties and nearly 64,000 organic gross rooms in 2023. The company also completed its acquisition of the City Express brand portfolio, bringing an additional 150 properties and approximately 17,500 rooms into Marriott's system during the year.
"Marriott remains focused on offering more best-in-class brands and experiences to meet the strong consumer demand for travel," Marriott International President and CEO Anthony Capuano said in a statement. "As we continue to expand our global brand portfolio, grow our Marriott Bonvoy loyalty platform, and provide innovative offerings to our owner and franchise community, we continue to meet the needs of guests across all stay purposes around the world. I am excited about our momentum as we strive to connect people through the power of travel."
Luxury
Marriott has 623 properties across 70 countries and territories in its luxury segment. In 2023, the company signed a record 58 deals for luxury hotels and resorts, bringing Marriott's luxury portfolio in the global development pipeline to 245 hotels, including more than 20 hotels expected to open in 2024.
This past year also reflected W Hotels' new chapter as it continued its brand refresh and global expansion into new destinations, including the debut of W Budapest—the brand's first hotel in Hungary—and W Edinburgh, the second W hotel in the United Kingdom.
Other highlights from the year include the opening of Rissai Valley, a Ritz-Carlton Reserve, marking the company's 500th hotel in Greater China. The Ritz-Carlton brand debuted in the U.S. Pacific Northwest with The Ritz-Carlton Portland, the St. Regis brand debuted in the U.S. Midwest with The St. Regis Chicago, and three luxury hotels were signed in Vietnam (JW Marriott Trang An Resort & Spa, The Luxury Collection Resort, Hon Thom Island and The Ritz-Carlton Reserve, Hon Thom Island).
Midscale
Marriott entered the high-growth affordable midscale segment in 2023 with the acquisition of the City Express brand portfolio in the company's Caribbean and Latin America region. With approximately 17,500 rooms across Mexico, Costa Rica, Colombia, and Chile, the deal increased Marriott's footprint in the CALA region by approximately 45 percent. In 2024, the City Express by Marriott brand is expected to expand to additional countries across CALA.
Marriott is continuing its expansion in the affordable midscale segment with the announcement of StudioRes, a brand aimed at providing reasonably priced, modern comfort for guests seeking longer stay accommodations in the U.S. & Canada. On January 17, Marriott celebrated the first groundbreaking for the brand in Fort Myers, Fla., with approximately 300 other potential deals under discussion in 150 markets.
In September, Marriott launched Four Points Express by Sheraton, a conversion-focused midscale brand for the Europe, Middle East and Africa region. Through year-end 2023, the company signed six Four Points Express by Sheraton deals in the United Kingdom and Turkey.
Conversions and All-Inclusive
Conversions once again helped drive growth, with 25 percent of Marriott's room openings coming from conversions. In 2023, the company signed a record 184 conversion properties, representing nearly 65,000 rooms, including MGM. Marriott's collection brands including Autograph Collection Hotels, The Luxury Collection and Tribute Portfolio, represented 29 percent of global conversion rooms signed.
The company also grew its all-inclusive resort portfolio, signing three deals in its EMEA region in 2023 to bring its portfolio to 49 open and pipeline properties located across 12 markets and 10 brands, with another six anticipated openings in 2024.
Branded Residences
Marriott has 134 open and 115 pipeline residential projects across 49 countries and territories and 16 brands. In the past five years, the company has added 48 residential locations across 14 brands and continues to see growth in the segment. Recent highlights include the openings of The St. Regis Residences, Cairo, Egypt; The Residences at Sheraton Cebu Mactan Resort, Philippines; The Ritz-Carlton Residences, Portland, Ore.; and The Ritz-Carlton Residences Mexico City.
Apartments by Marriott Bonvoy
Launched in 2022, Apartments by Marriott Bonvoy lets developers convert an existing residential building, pursue a new build or integrate as part of a mixed-use property. The company opened the first Apartments by Marriott Bonvoy property in Casa Costera, Isla Verde Beach, San Juan, Puerto Rico, in December and expects to continue growing its global presence, with additional signed agreements in the United States, Italy and Saudi Arabia.
MGM Collection with Marriott Bonvoy
In July, Marriott signed an exclusive long-term strategic licensing agreement with MGM Resorts International and created the MGM Collection with Marriott Bonvoy, which is expected to launch in early 2024. The agreement includes 17 of MGM's resorts, representing more than 40,000 rooms in Las Vegas and other cities across the U.S.
The deal is expected to increase Marriott's global rooms distribution 2.3 percent.