In the next 15 months, Marriott International expects to add around 20 hotels and more than 5,000 rooms throughout the Gulf countries. Therefore the company is looking to increase its presence in the Middle East.
The expansion of Marriott International in the Middle East is being fuelled by the rising developer interest in adaptive reuse properties and conversions. Equally, continued demand for Marriott International's exceptional portfolio of hotel brands across the UAE, Saudi Arabia, and Qatar is another key factor here.
RISE IN CONVERSION & ADAPTIVE RE-USE OPPORTUNITIES FOR MARRIOTT
Despite new-builds accounting for the majority of Marriott International’s business growth in the Middle East, the company is currently witnessing a rise in conversion opportunities. This conveys the sheer demand for the Marriott Hotel brand in the Middle East region. There is also more interest in the adaptive reuse sector, as builders are attempting to turn old structures into hotels. By the end of 2023, the corporation anticipates adding more than 30% of its property in the area through conversion and adaptive reuse initiatives.
The international scale of Marriott International’s operations puts the company in a perfect position to work on conversion and adaptive reuse projects. For example, the company has created a conversion-friendly platform that enables current hotels to easily and affordable access Marriott’s high-end sales, distribution, and loyalty networks.
ATTRACTIVENESS OF EXPANDING IN THE MIDDLE EAST
Expansion within the Middle East’s tourism sector is occurring rapidly. This is coinciding with the long-term plans by regional governments to diversify their economies away from oil. Since the introduction of Saudi Arabia’s Vision 2030 in 2016, Saudi Arabia has seen financing of more than $1.1. trillion in real estate and infrastructure developments. But equally, other regional plans such as Egypt’s Vision 2030 and the Abu Dhabi Economic Vision 2030 are achieving comparable results. So, regional goals that specifically target increasing investments into real estate and hospitality are ideal for Marriot International and other hospitality brands alike. They are continuing to be presented with an attractive opportunity to further expand in the Middle East.
Marriot International’s portfolio in the Middle East is already well established, including over 150 properties with over 40,000 rooms. These are spread across 21 brands in 11 countries and territories. So, they are already in a strong position to leverage the opportunities that expansion in the Middle East offers.