Marriott making push for all-inclusive resorts

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The NIA complex in Riviera Nayarit will have Ritz-Carlton, Westin, Autograph Collection and Marriott resorts.
The NIA complex in Riviera Nayarit will have Ritz-Carlton, Westin, Autograph Collection and Marriott resorts.

Marriott International is significantly expanding its presence in the all-inclusive resort space, announcing plans to manage five new all-inclusive properties in the Dominican Republic and Mexico.

These all-inclusives will include a 650-room Autograph Collection resort in Punta Cana, which is scheduled to open in 2022, and four separate resorts that will open as part of NIA, a new all-inclusive development in Riviera Nayarit, Mexico, that will span 220 acres. 

NIA will have a 240-room Ritz-Carlton and a 400-room Westin. Both are due to open by 2023. A 300-room Autograph Collection resort and a 500-room Marriott are expected to open by 2025. 

Marriott plans to further grow its all-inclusive inventory with its full-service and luxury brands, including Ritz-Carlton, Luxury Collection, Marriott, Westin, W, Autograph Collection and Delta by Marriott. The brands will deliver different experiences. For example, Marriott will cater to families and W adults. 

"We don't have a forecast for you today about how big this [all-inclusive] business will get over time, but we do know that it is increasingly popular among leisure travelers," Marriott International CEO Arne Sorenson told investors during the company's Q2 earnings call on Tuesday. "Broadly, the Caribbean is the largest market in the world for it, but you've got growing markets in the Mediterranean area as well as Asia Pacific, and obviously our brands are well known in those markets."

As part of the company's long-term push into the segment, Sorenson said that Marriott will pursue resort conversions as well as new properties.

In the second quarter, Marriott reported a systemwide increase in revenue per available room (RevPAR) of 1.8%. North American RevPAR was soft during the period, rising just 0.7%, while RevPAR outside North America grew 2.8%. The company's total revenue fell nearly 2% to $5.3 billion.

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