Marriott is joining a burgeoning number of big hotel chains in offering “modestly priced” extended stays to travel consumers, with an eye on taking on Airbnb and other short-term home stay companies.
The report came straight from top company brass at Marriott’s most recent quarterly earnings conference call.
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“Here in the U.S., we're just a few weeks away from announcing a simple, modern, streamlined new-build, extended-stay product that has very basic services and amenities for those looking for longer stays at a midscale price point,” Marriott CEO Anthony Capuano said on Tuesday, May 2.
Capuano was short on specifics, but did say more information would be forthcoming “in the coming weeks.”
Marriott joins high-profile competitors like Hyatt (via Hyatt Studios) and Hilton (HLT) (as yet unnamed) which have also announced plans to jump into the extended stay market.
Marriott (MAR) already has 31 different brands, including Residence Inn, TownPlace Suites, and Marriott Executive Apartments, but the new extended stay brand won’t offer many amenities compared to the company’s other hotel brands.
Marriott also appears to be rebounding from its pandemic woes, recording a substantial $757 million profit for the first quarter of 2023, well ahead of Hilton’s $209 million reported over the same time period. The company also raised its revenue outlook for the remainder of 2023.
“It is clear post-pandemic, people have an appreciation for travel,” Capuano noted on the conference call. “While macroeconomic uncertainty persists, it has not weighed on travel demand to date.”
Whether that means more travelers bypassing Airbnb (ABNB) for a budget-friendly Marriott extended stay product remains to be seen. But there’s no doubt Marriott wants in on the short-stay travel occupancy market, and apparently the sooner the better.
