Key Takeaways
- Project Mid-T targets midscale market with conversion-friendly strategy for U.S. and Canada.
- Offers competitive 10.5% bundled fee and light operational model for franchisees.
- Designed for business, leisure travelers, and families seeking affordable accommodations.
Marriott International, a global leader in the hospitality industry, has announced the launch of its latest hotel brand, Project Mid-T. This new addition to Marriott’s extensive portfolio targets the midscale hotel category, aiming to cater to transient leisure and business travellers seeking affordable accommodations.
The unveiling of Project Mid-T took place at the NYU International Hospitality Industry Investment Conference, following CEO Anthony Capuano’s hint about the brand during an early May earnings call. Detailed information about the brand was disclosed to Skift, a leading travel industry news source. As Marriott’s 35th brand, Project Mid-T is set to fill a specific price point gap in the company’s offerings, meeting the growing demand for midscale lodging options.
Conversion-Friendly Strategy
One of the key aspects of Project Mid-T is its conversion-friendly approach, providing Marriott franchisees with a “kit of parts” conversion strategy. The brand offers a light operational model, functional modern design, and purchase-ready furniture, fixtures, equipment, and finish specifications. This adaptable FF&E program is designed to accommodate different building configurations, making it easier for hotel owners to convert existing properties to align with the brand’s standards.
Noah Silverman, executive vice president and chief development officer for the U.S. and Canada, emphasized the brand’s appeal, stating, “Our aim for the brand is to provide a compelling, efficient design strategy that is conversion-friendly, a light operating model, and a highly competitive low bundled fee that harnesses the power of Marriott’s distribution channels and Marriott Bonvoy loyalty program, perfect for markets across U.S. and Canada.”
Conversions play a significant role in Marriott’s overall pipeline growth, with Capuano noting during the company’s first-quarter earnings call that conversions represented 30% of the company’s global signings.
Target Audience and Market Demand
Project Mid-T is designed for “efficient travellers,” including business travellers, leisure travellers, groups, and families. The brand aims to capitalize on growing consumer demand as part of Marriott’s sales, distribution, and marketing systems, targeting transient guests travelling within the U.S. and Canada.
Financial Considerations
Marriott has introduced a competitive bundled fee of 10.5% for Project Mid-T, which includes several fees such as franchise royalty and marketing. This simplified fee structure is designed to streamline the financial aspects of hotel operations and provide a more straightforward experience for guests.
The launch of Project Mid-T also comes as a strategic response to the challenges faced by developers seeking to build hotels from scratch, particularly in light of recent interest rate increases. By focusing on conversions and adaptive reuse, Marriott aims to mitigate these challenges and expand its midscale presence.
Industry Impact and Growth
The introduction of Project Mid-T marks Marriott’s effort to expand its presence in the affordable midscale market. As part of the company’s broader strategy to diversify its portfolio and cater to a wider range of travellers, this new brand is expected to have a notable impact on the competitive landscape of the hospitality industry in the U.S. and Canada.
According to Hotel News Now, by the end of March, Marriott’s global development pipeline totalled 3,419 hotels with nearly 547,000 rooms, including 155 properties with about 27,000 rooms approved for development but not yet signed. With its conversion-friendly approach, streamlined offerings, and appeal to efficient travellers, Project Mid-T is poised to contribute to Marriott’s ongoing growth and success in the midscale hotel category.
