Marriott International is boosting its presence in the Caribbean, Latin America and South America, where it currently has 65 properties in 24 countries and territories spanning nine lodging brands. Senior Editor Gay Nagle Myers spoke with Rob Steigerwald, COO, Americas South, about Marriott's plans for expansion, the region's importance to the U.S. sector and Marriott's development plans for emerging markets.
Q: Just how does this region figure into Marriott International's growth plans?
A: Marriott defines this geographic area as "south of the U.S." It is a large area of explosive growth. There has been a lot of global press about the rise of China and India as the hot, emerging markets. This region ranks up there in terms of importance. We've got 18 hotels opening within the next 18 months and 29 more properties under development. By the end of 2016, Marriott International, including Ritz-Carlton, will have 95 hotels in the Caribbean and Latin America, with more than 22,000 rooms in 25 countries. This does not include 50 Fairfield Inn properties we plan to open all over Brazil, from Sao Paulo, Rio de Janeiro, Manaus and Salvador to smaller markets.
Q: Why so many Fairfield Inns in Brazil?
A: We've got four Marriotts [there] now: a JW in Rio, Marriott Executive Apartments in Sao Paulo as well as the Airport Marriott and Renaissance, also in Sao Paulo. Brazil has shown excellent growth from a RevPAR standpoint, and the area is a site of a lot of activity, like the FIFA World Cup in 2014 and the Summer Olympics in 2016. The Fairfield Inn brand is targeted at the midmarket sector, and the 50 we're [planning] have been redesigned for the Brazilian market, each offering a full-service restaurant, which is not typical of the U.S. Fairfield Inns.
Q: How many properties are newbuilds? How many are conversions?
A: Approximately 70% of the 18 properties opening in the next 18 months are newbuilds by owners who currently own Marriotts. Driving this push is the power of the Marriott sales engine coupled with our distribution systems, our sales forces and the Marriott flag and name on the property.
Q: How important is the Mexico market, and how has it fared?
A: We've got 19 hotels across five brands with 1,000 rooms in Cancun alone. Mexico's had problems with H1N1, the recession in the U.S. and the recent crime and security concerns. The good news is that Mexico is coming back, from the business centers to the resort areas. Leisure travel has remained strong, and our group business continues to rebound there. It's up in the double-digit range in Cancun this year, and 2012 looks just as robust.
Q: What about the Caribbean?
A: We're strongly committed to the Caribbean with our resorts in Grand Cayman, St. Kitts, Aruba, Curacao, St. Thomas and Barbados, where we opened our first Courtyard this year. We're completing a $45 million top-to-bottom restoration at Frenchman's Reef in St. Thomas, which debuts Oct. 3. We've announced plans for the first Ritz-Carlton Reserve at Dorado in Puerto Rico, opening in late 2012. Scrub Island Resort in the British Virgin Islands joins our Autograph Collection early next year.
Q: Will there be an increase in winter season rates?
A: Depends on the market. Guests still seek value, and this trend will continue as long as the economy continues to struggle. U.S. travelers are so resilient, and they will travel if they see value.
Q: What's the role of social media in Marriott's landscape?
A: Our customers are using it more and more, and we have to be right up there with them. It's an exciting and important venue and opportunity for our company and our brands.