Marriott International is embarking on an ambitious luxury expansion, betting on massive intergenerational wealth transfers to drive demand for luxury experiential travel over the next two decades.
Marriott announced Tuesday that it has more than 260 luxury properties in its development pipeline, an increase of about 50% from the current 529 properties.
The expansion comes as Marriott looks to capture spending from millennial and Gen Z travelers, who are expected to inherit $80 trillion worldwide over the next 20 years.
Tina Edmundson, Marriott’s luxury president at the International Luxury Travel Market in Cannes, said as baby boomers retire, they are joining a new generation of wealth that increasingly values experiences over material luxuries. He said he would hand over the
Marriott’s luxury brand is increasingly pursuing partnerships with luxury brands and pop-up events to attract younger, affluent consumers, Edmundson said.
Young, wealthy travelers often prioritize experiences over traditional material luxuries. So the world’s largest hoteliers are responding by expanding into new categories such as private members clubs, all-inclusive resorts and luxury yachts. Upcoming projects include opening multiple safari lodges in Africa, which will be the company’s first entry into this sector.
The company’s luxury portfolio includes brands such as Ritz-Carlton, St. Regis, and Edition. Marriott has seen significant openings this year, including The Ritz-Carlton’s first property in Morocco, St. Regis’ entry into Serbia, and the return of W Hotels to the Las Vegas Strip through a licensing agreement with MGM Resorts International. Next year, Marriott plans to open about 30 luxury hotels.
Year-to-date performance of the Lodging Sector Stock Index
What am I looking at? Performance of hotel and short-term rental sector stocks within the ST200. The index includes publicly traded companies in global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than $1 trillion into one number. See more performance in the hotel and short-term rental finance sector.
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