Marriott introduces StudioRes to meet budget travelers' needs
- Marriott International's CEO Anthony Capuano discussed the company's new focus on mid-scale hotels for budget travelers.
- The StudioRes brand was introduced as an extended-stay option to cater to cost-conscious consumers.
- This strategic move reflects Marriott's efforts to expand its reach into the mid-scale segment of the hospitality market.
In the United States, Marriott International has made significant strides in catering to budget-conscious travelers, as revealed by CEO Anthony Capuano during a Monday appearance on "The Claman Countdown." Capuano discussed how lower-income consumers are increasingly prioritizing travel but seek cost-effective options. The company identified a growing demand for mid-scale accommodations, a segment in which it historically had limited presence. This move was highlighted by Marriott's acquisition of City Express de C.V. for $100 million in 2022, which marked a strategic entry into this market. In line with this strategy, Marriott developed a new extended-stay brand named StudioRes. The first location of StudioRes recently opened its doors in Fort Myers, Florida, showcasing features designed specifically for budget travelers. These studio-style rooms are equipped with essential amenities such as lounging areas, kitchenettes with full-sized refrigerators and stovetops, and various bed configurations. The brand aims to appeal to a diverse clientele, including digital nomads, temporary workers on assignments, and construction professionals, highlighting a unique differentiation from luxury options in Marriott’s portfolio. Capuano explained that the essence of the StudioRes brand lies predominantly in its price point and modest service offerings. This approach aims to resonate strongly with consumers looking for affordable travel solutions without sacrificing essential comforts. The extended-stay option is particularly designed to cater to individuals who require flexible accommodation for shorter time frames or during temporary relocations. Marriott’s strategic pivot towards mid-scale options is a response to changing travel habits and economic pressures. With the company's overall revenue reported at $6.26 billion in the first quarter and net income of $665 million, the introduction of StudioRes reflects Marriott's commitment to providing a breadth of accommodations and services suitable for various travel purposes, irrespective of the traveler’s income level. The introduction of this brand underscores Marriott’s dedication to growing its portfolio and enhancing accessibility for budget-conscious consumers while maintaining competitive positioning in the hospitality market.