Marriott focuses on building portfolio, rebranding spas

Hotel & Motel Management, June 21, 2004 by Jeff Higley

Bethesda, Md. -- With a half a million rooms in its portfolio, Marriott International executives are poised to add 95,000 more rooms to the company's lodging system in the next three years.

If successful in that quest, the company will match the number of rooms added to the system since 9/11.

"We are all focused like a laser on the hospitality business," said J.W. "Bill" Marriott Jr. during a May gathering at the company's headquarters to introduce its "Marriott Now" corporate image campaign.

A major thrust behind the expansion is a refined focus on the design elements of the company's hotel brands.

"Design is becoming the differentiator in the eyes of the customers," said John Leary, senior v.p.

"The things that you see are designed to give us an edge," Bill Marriott said. "That drives the difference between a commodity and a brand. We are, in fact, intent on differentiation."

It's important that all of Marriott International's products have consistency within their niches, said Mike Jannini, executive v.p. of brand management.

"At the highest level, a brand is a promise," he said.

Guestroom design elements are a large piece of the Marriott Now program. Company executives discussed several initiatives, including:

* A generation 7 Residence Inn unit that will provide more of a sense of separation between rooms. The new unit will have a minimum of 70 percent studio rooms.

* A new room for Courtyard by Marriott is in the works. It'll include a desk with casters so guests can move it, a curved shower curtain rod and a "peek-a-boo" area for a coffee pot behind the bed's headboard.

About 200 older Courtyard properties will put in the new program by the end of the year.

Officials said they hope to have the overhaul of all Courtyard rooms completed in 18 months. The package will cost about $10,000 per room.

* The new guestroom for Marriott hotels and resorts will feature all white softgoods and a reclining chair in all king guestrooms. Armoires are falling by the wayside in favor of more freestanding elements. The design includes the signature splash of Marriott red in all guestrooms--much of which will come from lamps. Jannini said Marriott International is working with Host Marriott, its largest licensee, to co-create the new design look for Marriott-branded hotels and resorts. The new room will be introduced in 2005, he said.

"It's all part of an economic cycle," Jannini said.

On the strip

Marriott is looking to fill a void that it has in Las Vegas, said Arne Sorenson, c.f.o. and leader of Marriott's European lodging operations.

"Las Vegas is obviously a big stay in the meetings business," Sorenson said. "We would very much like to have a big-box meeting facility in Vegas. We want something by The Strip. We'll look at any existing hotels or development opportunities."

Sorenson said the company only wants to operate a hotel in Vegas, and would lease any casino space that comes with a hotel.

"We don't want to own land," he said. "We don't want to get into the casino business."

"I don't want to wake up and find out someone just cleaned us out for $20 million playing baccarat," Bill Marriott said. "We don't know the casino business."

Sorenson said the company looked closely at a deal to acquire the Las Vegas Hilton last year, but the deal couldn't get finalized.

Spa refresher

Company executives said most of the spas at Marriott properties will be rebranded under the "Revive" name, which was launched when the JW Marriott Desert Ridge Resort opened in 2003. There are 38 Revive spas open with seven more in the pipeline by the end of the year.

Spa trends are going back to the basics, said Robin Uler, senior v.p. of food, beverage and retail. She said the spas will have basic design and operating standards that the company knows guests prefer.

"We want to bring in a sense of unity," Uler said. "We can do that in a way that permits indigenous elements while also adhering to design and operating standards that give guests the maximum experience."

Tech trends

The company is beginning to test NCR-branded check-in and check-out kiosks, said John Marriott, executive v.p. of lodging.

Kiosks are installed in Marriott's Newark (N.J.) International Airport, Hanover, N.J., and Washington Crystal Gateway locations. The kiosks totally automate the check-in and check-out process, including room changes, keycard encoding and dispensing, folio printing and guest identification. Marriott also is using the kiosks to deliver customized marketing promotions and Marriott Rewards guest loyalty program platinum level arrival gift selection.

Bruce Wolff, senior v.p. of distribution and sales, said Marriott International has high-speed Internet access installed at more than 2,000 of its hotels and has wireless applications installed at more than 1,500 hotels. Company officials plan to continue to charge a fee for HSIA at most full-service properties. Sorenson said the HSIA program works well in part because of the consistency provided by STSN, which is the most common HSIA installation within the company. Marriott owns a stake in STSN.