JW Marriott Maldives has seen enormous demand during and after the pandemic.
Marriott International is the world’s largest hospitality company with 30 brands that span various price points and styles from select service to luxury. Among its many well-known names are Ritz-Carlton, Westin, Sheraton, Courtyard by Marriott and AC by Marriott. As pandemic challenges ease and international borders reopen, Marriott sees tremendous growth opportunity with its breadth of brands, especially in Asia Pacific where more than half of its future hotel pipeline exists.
Craig S. Smith oversees the International Division of Marriott International, Inc., the world's ... [+]
Overseeing this mammoth operation is no easy task. Craig S. Smith, who manages the international division of Marriott International, Inc., is in charge of more than 2,300 properties in 136 countries and territories across Asia, the Pacific region, Europe, the Middle East, Africa, the Caribbean and Latin America. He explains why Asia Pacific offers such opportunity, especially in the luxury segment, and how the brand remains both strong and relevant to changing consumer needs in the region.
What is Marriott’s growth plan for the Asia-Pacific market?
The swimming pool at The Ritz-Carlton Millenia, Singapore.
There are tremendous growth opportunities around the world, but especially in the Asia Pacific region. This area is serving as a growth engine for the company with 56% of the total global pipeline located in the Asia-Pacific marketplace. There are nearly 1,000 open properties at the moment plus 700 more hotels in our signed pipeline.
The company’s strength in luxury stands out with Bulgari, The Ritz-Carlton, The Edition, The Luxury Collection, St. Regis, JW Marriott and W all present in the region. The international division itself currently accounts for 78% of the company’s total luxury pipeline.
How important is “select-service” with the international portfolio?
Courtyard by Marriott is one of the many brands that Marriott is launching in Australia.
This is the benefit of having a vast portfolio with 30 iconic brands, the select-service hotel tier is also expanding. Japan is a stellar example of that. The Fairfield by Marriott brand is opening there with many hotels located near roadside rest stations, which are called “michi-no-eki,” seeing some of the biggest growth opportunity.
Where else in Asia Pacific is Marriott seeing potential?
A suite at The Tasman, a Luxury Collection Hotel, Hobart
The company is quadrupling its footprint in Vietnam with a presence in both urban and resort areas. Another marked growth area is the leisure footprint in Australia, Thailand, and the Maldives. Marriott is also seeing increased business travel and group activity in Singapore, South Korea, India and Indonesia.
Domestic business in China is strong and fueled, in part, by a particularly young luxury hotel customer. Looking ahead, Marriott sees long-term growth potential with young, affluent Chinese travelers.
One key area that people don’t always associate with the company is the many award-winning restaurants inside hotels, representing a true bright spot for the region. For example, there’s Colony at The Ritz-Carlton Millenia Singapore, an all-day restaurant featuring local and Asian cuisine from seven open-concept kitchens.
There are several Michelin star award winners under the flag including Tin Lung Heen at The Ritz-Carlton, Hong Kong; L’Envol at The St. Regis Hong Kong; and Man Ho Chinese Restaurant at JW Marriott Hotel Hong Kong. All of these bring strong business and brand awareness to hotels in the region.
How does Marriott Bonvoy factor into brand awareness?
The rooftop pool at the new Marriott Hotel Docklands in Melbourne, Australia.
Marriott Bonvoy is the “crown jewel,” elevating the customer value proposition of more than 8,100 properties worldwide and with over 173 million members.
Marriott Bonvoy credit cards help keep travelers invested in the program, too. Guests are not only just with us when traveling to our hotels, but also during and in between stays, which builds value. Bonvoy members tend to book through direct channels like the Marriott website and app, which helps boost owner and franchisee profitability.
In the Asia-Pacific region specifically, five Marriott Bonvoy co-brand credit cards were launched (two in Japan and three in China) in the first half of this year, and global cardholder acquisitions and cardholder spend are achieving record levels as the program’s “stickiness” continues to take hold. This builds upon the growth and popularity of the program and credit card business in the United States.
Is Marriott growing in the all-inclusive market?
Marriott is growing in the all-inclusive market with new hotels and resorts in Mexico.
Marriott is “all- in” on all-inclusive. Marriott is growing rapidly in the Central and Latin American region with all-inclusive and extended stay part of a global hospitality trend. Extended stay properties are also a breakout global category, especially in a “work from anywhere” environment, which lends itself to longer lengths of stay.
Within Asia Pacific in general, All-Inclusive by Marriott Bonvoy examples include Element Bali Ubud in Indonesia and Element Melbourne Richmond in Australia. The brand is growing worldwide, but Asia Pacific is a particular focus for these types of hotels.
