Marriott International has unveiled a new three-year growth plan which includes opening approximately one hotel every 14 hours around the world.
The plan, which was revealed at a meeting with analysts and investors at the New York Marriott Marquis this week, targets the addition of between 285,000 and 300,000 rooms to the company’s global inventory between 2017 and 2019. Marriott is already the world’s largest hotel group, with more than a million rooms.
“We are more optimistic than ever about our future,” said Arne Sorenson, Marriott International’s president & CEO. “Marriott has made a significant leap forward in distribution and scale with its once-in-a-generation acquisition of Starwood.
“With global travel estimated to increase at a 7% compounded rate over the next 10 years and international trips expected to top 1.8 billion by 2030, Marriott is well positioned to benefit given its strong global footprint now in 122 countries and territories and an unmatched portfolio of 30 lodging brands,” he added.
The US$13.6bn acquisition of Starwood, which closed last year, had a transformative impact on Marriott’s global footprint. The company went from operating in 87 countries and territories at the end of 2015 to 122 by the end of 2016, taking a significant lead in market share over its next largest competitor.
Marriott now has more than 8% of worldwide hotel rooms, when including existing hotels and those in the construction pipeline, with a leading market share in North America, Asia Pacific and the Middle East and Africa.
Over the next three years, the company expects its global room count to increase at an annual rate of 6.5%, compared to a 5% over the last three years (including Starwood’s brands). In its three-year growth plan, Marriott expects to earn US$675 million in fees from the new hotel rooms being added to its inventory between 2017 and 2019.