- 11 Mar 2010 3:00 AM
Celebrating 35 years in Europe this year, Marriott International is represented with 174 hotels in Europe, and envisions increasing its portfolio from 40,000 rooms to 80,000 rooms by 2015, Amy McPherson, President and Managing Director of Marriott International Europe, announced at the International Hotel Investment Forum on Tuesday.
Seven of Marriott’s 18 brands are represented currently in Europe: Ritz-Carlton, Bvlgari, JW Marriott, Marriott Hotels & Resorts, Renaissance Hotels, Courtyard by Marriott and Marriott Executive Apartments.
In addition, the first European Residence Inn, an extended-stay brand, will open in Munich in 2012.
The development pipeline in Europe includes nearly 30 projects including the Renaissance Moscow Monarch Center Hotel (2010), the Courtyard by Marriott Budapest (2010) and the JW Marriott Hotel Ankara (2010).
"We see strong opportunity throughout Europe to grow our portfolio," said Arne Sorenson, President and Chief Operating Officer of Marriott International.
"Our new operating structure, comprised of four continental divisions including Europe, will help facilitate global growth and bring our teams closer to markets and to our customers. We have tremendous opportunities to grow, with over a third of our current pipeline and about half of our full-service openings this year located in markets outside North America."
"Europe is the largest lodging market in the world and holds enormous potential for Marriott," added McPherson
"With a footing in most of Europe’s gateway cities, we are thrilled to see our expansion continue into secondary cities and emerging markets. We are confident we are well- positioned to achieve this ambitious expansion goal," she said.
Marriott has two hotels in the Hungarian capital city and is set to open a third one in May.
In the heart of Budapest and within walking distance to shopping, business and entertainment areas, the deluxe Budapest Marriott Hotel enjoys a prime city center location. All of the 364 guest rooms have spectacular views on the Danube and the Buda Castle.
Millennium Court, Marriott Executive Apartments offers a choice of studio, one or two bedroom apartments ranging in size from 50 to 75 sqm. Each apartment has Internet access, flat screen television, DVD-player, high-speed Internet access, clock radio, individual air-conditioning, 'home office’ with double phone and fax lines, voice mail and private line. All 108 apartments offer a fully equipped American style kitchen with refrigerator, microwave and dishwasher.
The Courtyard Budapest City Center can be found in a building that is a combination of contemporary and traditional, with a beautifully restored historic facade. It is located close to the airport as well as in the center of the city, just steps away from the main public transportation lines and minutes away from the most important sights of the city.
Assumptions for 2010
For full year 2010, the company expects hotel occupancies to improve, although it said the pace of such improvement is difficult to predict. The company continues to expect that both domestic and international comparable systemwide REVPAR (Revenue Per Available Room) comparisons to the prior year will turn positive sometime in 2010.
For worldwide comparable systemwide hotels, the company assumes full year 2010 REVPAR will be down 2% to up 2% on a constant dollar basis with performance strengthening over the year. North American comparable systemwide REVPAR could be flat to down 3% in 2010, while REVPAR at comparable systemwide hotels outside North America could be flat to up 5%.
The company expects to open 25,000 to 30,000 rooms in 2010 as most hotels expected to open are already under construction or undergoing conversion from other brands.
"Given these assumptions, full year 2010 fee revenue could total USD 1,080 million to USD 1,120 million. The company expects that incentive management fees in 2010 would largely derive from international markets," Marriott said in its Q4 earnings report in mid-February.
The company expects investment spending in 2010 will total around USD 500 million, including capital expenditures totaling USD 150-200 million, of which maintenance capital spending could total USD 50 m.
"Investment spending will also include new mezzanine financing and mortgage loans, contract acquisition costs, and equity and other investments."