Marriott International (NASDAQ: MAR) today announced that its on track to hit a target of 50 hotels for its Australia, New Zealand and Pacific portfolio by the end of 2020. This announcement follows Marriott’s recently completed acquisition of Starwood Hotels & Resorts.
With 24 hotels currently in operation and a pipeline of signed and approved deals totaling an additional 18 properties, Marriott is on track to grow to 50 hotels over the next four years across the region, which includes Australia, New Zealand, Samoa, Fiji and New Caledonia. The current pipeline properties will provide more than 2,500 hotel jobs and add more than 4,500 rooms.
“This is an extremely exciting time for Marriott as we significantly grow our footprint in the Australia, New Zealand and Pacific region, and continue to build on our leadership position in gateway markets,” said Craig S. Smith, president and managing director Asia Pacific, Marriott International. “We currently have seven of our 30 brands represented here and we look forward to introducing more in the coming years.”
He continued, “Growth in the region has been strong in recent years and we hope to build on that growth now that the Starwood deal has closed. We are growing an in-market development team, including specialist feasibility and architecture, and construction capabilities, which will make a huge difference in our ability to respond to a high level of new project enquiry. Demand continues to be high from both consumers and developers, and with the wide variety of brands available, from mid-scale to luxury, we expect more great opportunities to brand further high quality, international-standard hotels in the region.”
Marriott International is set to expand rapidly across Australia in particular over the next few years. The world’s largest hotel company already has a strong market presence in the key gateway cities of Sydney, Melbourne, Perth and Brisbane, and will be entering emerging primary and secondary destinations, with the signings of Four Points by Sheraton Parramatta, The Westin Resort & Spa Coolum, Aloft Adelaide and Sheraton Adelaide Hotel. Three additional brands, Aloft, W and The Ritz-Carlton, are expected to be introduced to the region by the end of 2020, with the W Brisbane, and Aloft Perth scheduled to open in 2017, followed by Aloft Melbourne South Yarra and Aloft Adelaide in 2019, and The Ritz-Carlton, Melbourne and The Ritz-Carlton, Perth slated for 2020.
Accompanying Craig S. Smith on his visit to the region, Sean Hunt, recently appointed area vice president Australia, New Zealand and Pacific, Marriott International, commented on the factors driving this growth.
“Our success and exponential growth is being fuelled by a number of factors, including the rapidly increasing consumer demand for quality and premium lodging options, the strength of our brands and the high returns these offer our owners, and the benefits of the merger and our vast and global network and systems. The incredibly high number of loyalty members we have in the Australian market, which is currently sitting at over 1 million, will also play a key role in our growth strategy,” said Hunt.
“Australia is experiencing strong visitor arrival numbers and there is a significant shortage of hotel rooms in major cities around the country, in particular Sydney and Melbourne. Demand for quality accommodations is outstripping supply and despite having over 3,800 additional rooms already signed across Perth, Melbourne, Adelaide, Brisbane and Sydney, there’s still room for more.”
He continued, “Marriott International has the clear number one position for upper upscale and luxury hotels in Australia and New Zealand’s most important international gateway markets. It’s a real positive for any new hotel to have a brand that’s recognised and admired in those source markets.”
Marriott International is on track to boast the largest portfolio of upper upscale and luxury brands and properties across the Pacific region by 2020.
Smith commented: “As the world’s largest lodging company with a portfolio consisting of eight iconic and distinct luxury brands, we also have a role to play in developing and expanding Australia’s luxury portfolio.”
He continued, “Our robust pipeline for the region includes the introduction of three hotels from of our top-tier luxury brands signaling a demand for upper upscale services in the market. We will see The Ritz-Carlton reenter Australia with the opening of The Ritz-Carlton Perth and The Ritz-Carlton Melbourne, and 2017 will see the reentry of the famed W Hotels brand with the opening of W Brisbane.”
“Australia is doing a fantastic job of driving interest from this segment by showcasing the premium product and experiences available here, but, as across the board in this market, demand is still outweighing the hotel product available,” he concluded.
Note on forward-looking statements: This communication contains “forward-looking statements” within the meaning of U.S. federal securities laws, including expected future hotel openings and locations and statements about the benefits of the transaction, including expected synergies and enhanced revenue opportunities for the combined company, that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including the “Risks Related to the Starwood Combination” and other risk factors that we identify in our most recent quarterly report on Form 10-Q that we filed with the U.S. Securities and Exchange Commission. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this communication. We make these forward-looking statements as of the date of this communication, 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, Inc.
Marriott International, Inc. (NASDAQ: MAR) is the world’s largest hotel company based in Bethesda, Maryland, USA, with more than 6,000 properties in 122 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts. The company’s 30 leading brands include: Bulgari®, The Ritz-Carlton® and The Ritz-Carlton Reserve®, St. Regis®, W®, EDITION®, JW Marriott®, The Luxury Collection®, Marriott Hotels®, Westin®, Le Méridien®, Renaissance® Hotels, Sheraton®, Delta Hotels by MarriottSM, Marriott Executive Apartments®, Marriott Vacation Club®, Autograph Collection® Hotels, Tribute Portfolio™, Design Hotels™, Gaylord Hotels®, Courtyard®, Four Points® by Sheraton, SpringHill Suites®, Fairfield Inn & Suites®, Residence Inn®, TownePlace Suites®, AC Hotels by Marriott®, Aloft®, Element®, Moxy® Hotels, and Protea Hotels by Marriott®. The company also operates award-winning loyalty programs: Marriott Rewards®, which includes The Ritz-Carlton Rewards®, and Starwood Preferred Guest®. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com and @MarriottIntl.