Marriott International is set to convert three U.S. luxury properties into its Marriott Bonvoy portfolio, as reported by Jenna Walters from Hotel Dive. The properties include The Resort at Pelican Hill in Newport Beach, California; Turtle Bay Resort on Oahu, Hawaii; and an undisclosed luxury hotel in Midtown Manhattan.
These conversions are part of Marriott's strategy to expand its presence in the luxury market, driven by rising traveler demand. Dana Jacobsohn, Marriott’s Chief Development Officer for U.S. Luxury Brands and Global Mixed-Use, highlighted the company’s focus on this growing segment.
The Resort at Pelican Hill, a sprawling 504-acre property, will join Marriott’s luxury portfolio on July 1 and is expected to be rebranded under the St. Regis name. Marriott will manage this property, which is owned by the Irvine Company.
Turtle Bay Resort, with 450 rooms on Oahu's North Shore, will be rebranded as a Ritz-Carlton. Marriott took over management of the resort after Host Hotels & Resorts acquired it from Blackstone Real Estate for $725 million.
On June 5, Marriott will also bring a luxury hotel in Midtown Manhattan near Times Square into its portfolio. Although specific details about this property are not disclosed, it will contribute to enhancing Marriott's luxury offerings.
These additions will increase Marriott's luxury room count by over 1,000, raising its luxury portfolio to more than 510 hotels. Luxury properties constitute about 10% of Marriott’s open rooms and pipeline rooms. Leeny Oberg, Marriott’s CFO and EVP of Development, emphasized that the 234 luxury hotels in Marriott’s pipeline reflect the company's dedication to this segment.
In September, Marriott announced plans to add between 230,000 and 270,000 net rooms from the end of 2022 through 2025, with a significant focus on luxury accommodations, anticipating increased traveler demand and spending. Jacobsohn noted that travelers are increasingly seeking world-class service and immersive experiences, which Marriott’s seven luxury brands are well equipped to offer.
Beyond luxury, Marriott is also expanding its midscale portfolio. In June 2023, the company launched StudioRes, an extended stay brand in the U.S. midscale segment. Additionally, CEO Anthony Capuano introduced Project Mid-T by Marriott, a new transient midscale brand targeting conversion opportunities in the U.S. and Canada.
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