Marriott boosts luxury growth in Latin America with major expansion plans
- Marriott International is increasingly focusing on Latin America as it sees rising tourism interest from U.S. travelers to the region.
- The company acquired City Express to enhance its mid-scale presence, and has plans for 35 new hotel openings, boosting its overall growth by over 50%.
- With a strategic emphasis on Brazil, Marriott is not only expanding its luxury brand offerings but is also introducing new hotels across its portfolio.
In recent months, Marriott International has significantly intensified its focus on Latin America, a region that is becoming increasingly appealing due to its growing economies. The brand is particularly concentrating on secondary markets where tourism is steadily rising, aided by the expansion of low-cost airlines that facilitate travel. Recent data indicates a notable rise in interest from U.S-based travelers, with locations such as Puerto Natales in Chile and Medellin in Colombia experiencing impressive growth in online searches. This trend reflects an upward trajectory in tourism within the region, leading hospitality companies, including Marriott, to target these emerging markets for expansion. Marriott's portfolio expansion in Latin America has been significantly influenced by its acquisition of City Express, which added over 150 hotels to its presence almost overnight. This strategic move expanded Marriott's operations in the mid-scale segment, while the company simultaneously aims to elevate its luxury offerings in the region. With an additional 35 hotels planned, Marriott's presence is set to increase by more than 50%. This is crucial for meeting the growing destination appeal in Latin America, as well as keeping pace with burgeoning consumer demand for high-quality hospitality services. Brazil has emerged as a key focus for Marriott, marked as the second largest market for Marriott Bonvoy membership, behind Mexico. The country currently hosts 14 Marriott hotels that collectively account for 3,592 rooms. The interest in Brazil is driven by a 43% rise in searches for Rio de Janeiro and a 22% increase for Sao Paulo over the past year. To support this rising demand and strengthen its brand recognition in Brazil, Marriott is planning to develop its luxury portfolio further. Noteworthy developments include the anticipated opening of a Ritz-Carlton Reserve in Central America, as well as new properties like The Westin Sao Paulo and Tropical Hotel da Amazônia, which will be the inaugural hotels for their respective brands in Brazil. As the economies in Latin America stabilize, the region is transforming into a promising target for hospitality growth. Experts recognize the significant potential for tourism, fueled by investments in infrastructure, regional developments, and enhanced travel options for both domestic and international tourists. This trend suggests a larger movement toward a more diverse and robust tourism landscape, presenting opportunities for hospitality operators. Overall, Marriott's strategic positioning reflects its commitment to enhancing its luxury brands while also catering to growing demands within both mid-scale and luxury segments across the region.