Marriott plans expansion through hotel takeovers
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Marriott International plans to expand by taking over the operation of hotels from competitors unable to pay or refinance debt, the hotel giant’s Chief Financial Officer Carl Berquist, has said. According to a Bloomberg report, Marriott intends to add 110,000 rooms, including 30,000 this year, to its current inventory of about 577,000. About 50% are under construction at the chain’s hotels, while 6% are being converted from rival brands. Most of the remaining projects are on hold as property owners wait for building costs to drop or seek financing amid the credit crunch. “There’s a lot of money on the sidelines to step in and take the position as an owner,” Berquist was reported saying in a telephone interview. “We are more than willing to work with those folks and help manage or franchise those opportunities,” he said, adding that Marriott would be prepared to “put in some equity if it makes sense to us.” He declined to specify which brands were being switched over, or to estimate the number of likely conversions next year. “We’re very optimistic for 2010,” Berquist stated.
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