Marriott International Expands Luxury Portfolio with Three New Hotels

Marriott International is set to expand its luxury portfolio this summer with the addition of three high-profile hotel conversions. The new properties, located in Midtown Manhattan, Newport Beach, California, and Oahu, Hawaii, will join Marriott's Luxury Collection and St. Regis brands, adding over 1,000 rooms to the company's system.

Marriott International's expansion into the luxury hotel market has significant implications for the hospitality industry as a whole. This move could lead to increased competition and innovation in the high-end travel sector, consequently benefiting consumers.

On June 5, a luxury hotel in Midtown Manhattan will be converted to The Luxury Collection brand. This move marks the brand's return to New York City and places the hotel in a prime location close to Central Park, Times Square, and The Museum of Modern Art.

The Resort at Pelican Hill in Newport Beach, California, will join Marriott's luxury portfolio on July 1. This 504-acre resort features residential-style bungalows and villas, which include the Pelican Hill Golf Club with two 18-hole courses. The property is expected to eventually convert to the St. Regis brand.

Later this summer, the 450-room Turtle Bay Resort on the North Shore of Oahu, Hawaii, will become a Ritz-Carlton resort. The property, known for its oceanfront bungalows, lavish suites, and ocean view rooms, will join The Ritz-Carlton brand portfolio, enhancing Marriott's presence in the luxury market.

Dana Jacobsohn, Marriott International's chief development officer for U.S. luxury brands and global mixed-use, emphasized the company's focus on luxury expansion. "Strengthening and growing our luxury pipeline is a top priority for the company, and I'm proud that Marriott remains the clear industry leader in the segment," Jacobsohn said.

Marriott currently operates around 510 hotels and resorts across its seven luxury brands, with luxury properties accounting for approximately 10% of both open rooms and pipeline rooms. The company's signed pipeline includes 234 luxury hotels, indicating a continued commitment to growth in the luxury segment.

Leeny Oberg, Chief Financial Officer and Executive Vice President, Development, Marriott International, highlighted the significance of these additions. *"In the last few weeks, we finalized deals for conversions of three incredible properties, adding over 1,000 rooms to our system and continuing to reaffirm our commitment to luxury,"* Oberg said.

These high-profile conversions demonstrate Marriott's ongoing focus on expanding its luxury offerings and catering to high-end travelers. The strategic shift to managing instead of owning these properties aligns with Marriott's asset-light business model, reducing financial risk and capital expenditure while enhancing brand management and customer experience.

Marriott International's latest expansions in New York City, Newport Beach, and Oahu highlight its commitment to luxury and its leadership in the segment. With over 510 open luxury hotels and another 234 in the pipeline, Marriott continues to set the standard in high-end hospitality.

Key Takeaways

• Marriott adds 3 luxury hotels in NYC, Newport Beach, and Oahu to its portfolio.
• The conversions will add over 1,000 rooms to Marriott's luxury brands.
• The new properties will join The Luxury Collection, St. Regis, and Ritz-Carlton brands.
• Marriott's luxury pipeline includes 234 hotels, solidifying its industry leadership.
• The conversions align with Marriott's asset-light business model, reducing financial risk.