Marriott’s U.S. Development Chief on Fee Caps, Midscale Bets, and Why the Pipeline Is Holding
Summary
Marriott's U.S. hotel development pipeline shows resilience despite economic challenges. While facing inflation, labor shortages, and interest rate hikes, hotel openings are on schedule. The article suggests independent hotel owners may seek the perceived stability of larger groups like Marriott in uncertain times.
Key Insights
- •The uncertainty created by macroeconomic and global factors like the war in Iran has not helped things. Hotels slated to open this year are opening on schedule, and signing momentum is holding.
- •More aggressive immigration enforcement has tightened the labor pool that builds hotels.
Action Items
- ✓Consider the potential impact of economic uncertainty on your STR business, including increased costs and potential shifts in guest behavior.Effort: lowImpact: medium
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