What is the story about?
What's Happening?
Marriott International and Noble Investment Group have announced the groundbreaking of their 10th StudioRes hotel, marking a significant milestone in the expansion of Marriott's extended-stay brand. The new StudioRes hotel is designed to cater to professionals on assignment, relocating families, and mobile travelers seeking consistent and reliable lodging options. The design prioritizes efficiency in both construction and operation, aiming to bring the product to market rapidly. This development follows the recent opening of the first StudioRes in Fort Myers, Florida. The brand has over 50 projects in its pipeline, with approximately half currently under construction. This expansion is driven by rising workforce mobility and an undersupply in the extended-stay sector.
Why It's Important?
The construction of the 10th StudioRes hotel is a strategic move by Marriott to capitalize on the growing demand for long-term accommodations in the United States. As workforce mobility increases, there is a notable undersupply in the extended-stay sector, which Marriott aims to address through its StudioRes brand. The brand's positioning benefits from Marriott's extensive distribution channels and its loyalty program, Marriott Bonvoy, which has nearly 248 million members. This strategic positioning is expected to generate customer demand and drive performance, potentially leading to increased market share in the extended-stay segment.
What's Next?
With over 50 projects in the pipeline, Marriott and Noble Investment Group are poised to continue their expansion in the extended-stay market. As construction progresses, the companies will likely focus on leveraging Marriott's distribution channels and loyalty program to attract long-term guests. The success of these projects could influence other hospitality companies to invest in similar extended-stay models, potentially reshaping the industry landscape.
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