Marriott makes room for more Australian hotels
Fresh from its $US14 billion acquisition of Starwood, American hotelier Marriott International has confirmed it will launch a swag of new hotels in Australia including a six-star Bulgari and a JW Marriott.
Hong Kong-based Marriott International Asia Pacific president and managing director Craig S. Smith says the world’s largest hotel company will also open its first Australian regional office in Sydney this year.
There are now 15 Marriott hotels in Australia, 15 more in the pipeline and a host more under consideration, Smith says.
“We would love to see a JW Marriott in Australia, and we have Ritz-Carltons in Melbourne and opening in Perth, plus it would be wonderful to have a Bulgari, and also we have a W opening in Brisbane and there are opportunities for Sheratons to grow in Australia,” he says.
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Smith also hopes to add more of the brand’s upscale Autograph Collection hotels to Australia.
“We have a Bulgari in Bali — it has been very successful — and we have Bulgaris in Shanghai and Beijing. We would love to see one in Australia: you have the clientele and the cities, it would fit in, but it depends on the location.”
It’s incredible the number of loyalty members versus the amount of hotels we have had in Australia in the past
Smith says Australia is a great source market for Marriott’s loyalty program.
“It’s incredible the number of loyalty members versus the amount of hotels we have had in Australia in the past,” he says.
As a combined company, Marriott International will operate more than 30 brands.
“That affords us the opportunity to add more hotels in market without each hotel stealing from each other.”
Accor is Marriott’s main competitor in Australia, but the company now sports 5700 hotels around the world. Not only is it the world’s largest hotel company, it has the largest gross sales.
Meanwhile, Marriott says in a statement it could achieve $US250 million in annual cost synergies following the Starwood acquisition, including leveraging and sharing best practices.
“These enhanced efficiencies and revenue opportunities should drive improved property-level profitability as well as greater owner and franchisee preference for the combined company’s brands, which will encourage new hotel development,” Marriott International president and chief executive Arne Sorenson says.
This article originally appeared on www.theaustralian.com.au/property.
