Marriott’s Post-Pandemic Growth Story Is Outside the U.S.
Photo Credit: Countries like China present a major opportunity for Marriott to expand while construction lending remains tight for new hotels in the U.S. (pictured: a Westin in Guangzhou). Wikimedia / zengsx
Skift Take
A cooled-off construction market for hotels in the U.S. gives owners an opportunity to charge even higher rates during the recovery thanks to less supply in the market. But Marriott needs to show shareholders signs of growth. Hello, Asia and Europe.
The world’s largest hotel company has its eyes set on gobbling up international market share.
Marriott International leaders have touted growth opportunities in the U.S. and abroad through the pandemic via measures like conversions, deals involving owners of existing hotels taking on a franchise agreement for one of the hotels numerous brands. But the company sees plenty of opportunities outside the U.S., even for new build projects, given its comparatively limited exposure.
Marriott accounts for about 17 percent of all hotels in the U.S. as opposed to only 3 percent globally.
“There's no doubt that our international base of rooms is growing meaningfully faster than our U.S. base because we've got a very large chunk here in the U.S. to grow on,” Leeny Oberg, Marriott’s chief financial officer, said Tuesday at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum. “That trend will continue.”
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