D.C.-based Marriott International will partner with hotel innovator Ian Schrager to launch a brand of boutique hotels with at least 100 locations, the company announced Thursday.
Schrager is credited with inventing the boutique hotel concept more than 20 years ago. Boutique hotels are defined as unique destination spots designed individually by an architect to capture a more personalized feel for a person’s stay.
“Within the last two to three years, we’ve become increasingly interested in finding a way to participate in this segment, and determined we needed real expertise and real credibility in order to compete,” said Arne Sorenson, Marriott’s chief financial officer, in a teleconference Thursday.
Company Chief Executive Officer J.W. Marriott Jr. declined to say when the first boutique hotel will be built, though he said it likely would be in New York. The company hopes to sign five development deals by the end of the year. The company and Schrager will spend the next few weeks coming up with a name for the new brand.
The move will not require a major investment for the company because they will be owned by third parties and managed by Marriott, Marriott said.
Marriott will target international gateway cities such as Miami, Los Angeles,Shanghai, China, and London, Marriott said. The hotels will have an average size of 15-250 rooms.
Smedes Rose, a lodging analyst with N.Y.-based Calyon Securities, said that while he didn’t believe the venture would translate into earning additions for some time, he believes it is a good move for Marriott strategically.
“I think they are well-suited to succeed. They bring a breadth of worldwide experience and deep connections with developers,” Rose said. “They’re basically filling out their portfolio with a niche they haven’t been in.”
