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Marriott Hotels & Resorts
Marriott’s portfolio of hotels, around half of which are franchised units, comprise the world’s largest lodging company by number of locations and total revenue. Marriott owns several dozen hotel “expressions” (brands) across about 130 countries worldwide, encompassing everything from luxury hotels like Ritz-Carlton and St. Regis, to upscale brands like W Hotels, to accessible premium brands like Westin, Courtyard by Marriott, and Four Points by Sheraton, to mid-tier and extended stay brands like Fairfield Inn & Suites and TownePlace Suites. In recent years, Marriott has added several specialty lifestyle brands, including AC Hotels, Aloft, and Moxy, in an effort to target a younger demographic of travelers who prefer to stay among the bustle of urban neighborhoods. More about the cost of owning a Marriott Hotels and Resorts franchise below.
Facts & figures
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Marriott Hotels & Resorts Franchise Opportunities - History
The Marriott story began in 1927 when founders J. Willard and Alice Marriott opened an A&W root beer franchise in Washington, D.C. They instilled their knowledge of business and leadership into their son, Bill, who opened the first Marriott motor hotel in Arlington, Virginia in 1957. Marriott expanded swiftly, and in 1969, opened its first international hotel in Acapulco. By the late 80's, the hotel company opened its 500th location and began expanding into Europe. Marriott continued to grow and eventually opened alternative lodging brands catering to different levels of affordability and travel type. In 2016, Marriott acquired Starwood Hotels, itself the parent of a global portfolio of well-known hotel brands, forming the largest hotel and resort chain in the world. Today, Marriott International continues its mission of shaping the future of travel experiences through technology and innovation, boasting over 6,000 worldwide units.
Besides its sheer scale, one of the Marriott’s most distinctive competitive advantages is its suite of loyalty programs (Marriott Rewards, Starwood Preferred Guest, and The Ritz-Carlton Rewards) with some 120 million members worldwide. The company recently announced that its various programs would be merged over time.
Marriott Hotels & Resorts Franchise Cost and Requirements
No one said owning a large, luxury hotel franchise would be a low cost affair. Opening a newly built, 300 room Marriott hotel requires an investment of $67 million to $105 million. That cost is inclusive of the franchise application fee, construction, training, systems, initial supplies, opening day marketing, and more, but does not include the cost of the actual real estate on which the hotel will be located. The investment range is determined by the hotel's location, guest room configurations, amenities, and specific build out. The royalties paid by a franchisee in the Marriott system vary.
Overview of Marriott International's Franchised Hotel Brands
Marriott is the 10,000 lbs king kong gorilla of the hotel and resort space, with more properties and "expressions" (brands) than any other player in the industry. It can be quite a feat to navigate and categorize the company's huge (and constantly evolving) portfolio of hotel chains.
For investors interested in opening a Marriott franchise, the first question is which one? What people often mean by "Marriott Hotels & Resorts" is any of Marriott, JW Marriott, or possibly Marriott Executive Apartments. But the parent company portfolio extends far beyond that.
Here's a breakdown of the Marriott International portfolio by tier and class, with the brands that leverage the Marriott name directly emphasized:
Luxury Brands
- St. Regis Hotels & Resorts ("Classic" designation)
- The Ritz-Carlton ("Classic" designation)
- JW Marriott ("Classic" designation)
- Edition ("Distinctive" designation)
- The Luxury Collection ("Distinctive" designation)
- W Hotels ("Distinctive" designation)
- Bulgari Hotels & Resorts ("Distinctive" designation)
Upper Upscale Brands
- Marriott ("Classic" designation)
- Delta Hotels by Marriott ("Classic" designation)
- Sheraton ("Classic" designation)
- Marriott Executive Apartments ("Classic" designation)
- Autograph Collection Hotels ("Distinctive" designation)
- Le Meridien ("Distinctive" designation)
- Tribute Portfolio ("Distinctive" designation)
- Westin Hotels & Resorts ("Distinctive" designation)
- Renaissance Hotels ("Distinctive" designation)
- Gaylord Hotels ("Distinctive" designation)
Upscale Brands
- Four Points by Sheraton ("Classic" designation)
- Springhill Suites by Marriott ("Classic" designation)
- Residence Inn by Marriott ("Classic" designation)
- AC Hotels by Marriott ("Distinctive" designation)
- aloft Hotels ("Distinctive" designation)
- element by Westin ("Distinctive" designation)
Upper Midscale Brands
- Protea Hotels by Marriott ("Classic" designation)
- Fairfield by Marriott ("Classic" designation)
- Towneplace Suites by Marriott ("Classic" designation)
- Moxy Hotels ("Distinctive" designation)
Every brand has its own target demographic, price band, development roadmap, and brand promise, but the portfolio is unified by Marriott International's buying power, loyalty programs, technology systems, and operational experience. As a potential Marriott Hotels and Resorts franchisee, you'll want to examine all these factors to determine which Marriott brand might be a fit for your investment criteria.
