Marriott will launch brand for conversions and compete with Hilton

Marriott has announced that it is going to create a brand for conversions with the aim of competing with Spark by Hilton, which was launched by the American chain in January 2023. The CEO of the largest Hotel company in the world, Tony Capuano, announced that in a This month, the details of a “global conversion-friendly brand” can be finalized.

Marriott’s interest with conversion brands is based directly on the current interest rate market, where obtaining loans for new construction is difficult due to the higher rate environment that, even if they go down, will likely not return to pre-average levels. the pandemic, says Capuano

Marriott, Capuano said, has “a history of converting when we find an environment like this, where conversions are important because of the debt markets. We found that Bonvoy members price and value properties in the mid-range. Given the climate for new construction debt, by having a platform that can pivot toward conversions, the timing seems perfect.”

Although lending is limited, Marriott CFO Leeny Oberg added that there is now a more confident climate: “We have seen construction starts in the US increase by about 25% in compared to a year ago. Conversions represent about 30% of Marriott’s new projects.

As reported REPORTUR.mxAfter a record year of openings, Marriott has announced that it continues expansion in the Caribbean and Latin America in all segments, but especially in luxury and All-inclusive. In addition, it will promote the medium scale to expand its City Express offer. (Marriott offensive in the Caribbean and Latam with luxury and all inclusive)