Marriott International is continuing its push in the U.S. midscale segment — but this time with a transient, conversion-focused brand.
The company announced the new brand, under the working title Project Mid-T by Marriott, at the NYU International Hospitality Industry Investment Conference on Monday.
First touted by CEO Anthony Capuano during Marriott’s third-quarter 2024 earnings call, the midscale brand will focus on conversion opportunities across the U.S. and Canada. According to Marriott, the brand will offer a “light operational model and functional modern design,” catering to growing consumer demand in the middle-tier segment.
Marriott Chief Development Officer for the U.S. and Canada Noah Silverman and Senior Vice President and Global Leader of Select Brands Diana Plazas-Trowbridge sat down with Hotel Dive to talk about the brand’s design, how the product caters to developers and Marriott’s plans to expand in midscale.
Project Mid-T’s offerings
Project Mid-T will offer a “very clean and modern design,” Plazas-Trowbridge told Hotel Dive.
Guest rooms will range on average from 16.5 to 22 square meters, providing “a blend of practicality and comfort,” according to a Marriott brochure obtained by Hotel Dive. Furnishings in the rooms will include an open closet, work surface and storage solutions, as well as a mini-fridge and a safe box.
Project Mid-T hotels will include a lobby area with “comfortable seating” and a dedicated grab-and-go market with local food and beverage offerings.
The properties will also include a lounge “tailored to modern business traveler needs,” with desktop computers and printers. The space will serve as a gathering space as well, with communal tables and a TV screen for facilitating meetings, co-working and other business collaboration. Other possible amenities include a fitness center and pool.
The brand will cater to a variety of travelers in the middle-tier segment, including business professionals, families and corporate and leisure groups, Plazas-Trowbridge said.
“There is opportunity and demand, both from our owners and franchisees, for products within our system in this [middle] tier, and also from consumers who would like to take advantage of the opportunity to have products that Marriott has in this tier."
Noah Silverman
Marriott Chief Development Officer for the U.S. and Canada
Hotel owners will have the opportunity to convert existing properties under the middle-tier brand, so key count per property will vary, Plazas-Trowbridge added.
Developer demand
Project Mid-T launches as developers continue to favor hotel conversions because they provide a fast and affordable alternative to new construction.
The brand will offer a “lower cost to build,” according to Marriott. And for conversions, owners can expect to pay between $15,000 to $30,000 per key, Plazas-Trowbridge said.
“We remain laser-focused on ensuring that the cost to convert an existing hotel into Project Mid-T makes sense given the tier that the product competes in,” Silverman added.
The brand will largely focus on secondary and tertiary markets across the U.S. and Canada, which also provides some cost efficiency, Silverman noted.
“We expect Project Mid-T hotels to go in locations that may [otherwise] be challenging from just a cost [to develop and operate] perspective to do with our other brands,” Silverman said.
In addition to cost savings, developers can expect a quicker-to-market product with Project Mid-T since it is a conversion-friendly brand, though Silverman said the development timeline will vary from property to property. Lodging Econometrics SVP Bruce Ford previously told Hotel Dive that a conversion hotel can often sign and be operating under the brand within six months.
Developer interest in Project Mid-T has been strong so far, Silverman noted.
“We are already engaged in dozens upon dozens of conversations with mostly existing owners and franchisees about hotels that they would be looking to explore affiliating with the new brand,” he said.
Silverman declined to share details of specific properties in the works, but said he will be “disappointed if [Marriott] is not converting some hotels this year and finalizing a brand name and beginning to sign our first projects this coming quarter.”
Conversions played a big role in Marriott’s portfolio growth in 2023, accounting for 25% of the company’s organic room additions and 40% of organic rooms signed in the year. The company has also made a concerted push in the midscale segment over the last year.
Marriott’s midscale push
Marriott first entered the midscale segment in Latin America in May 2023 with the acquisition of the City Express brand portfolio from Hoteles City Express.
One month later, the hotel company entered the U.S. midscale segment with the launch of extended stay brand StudioRes.
Marriott broke ground on the first StudioRes hotel in Fort Myers, Florida, in January. In February, Capuano shared there were more than 300 additional potential StudioRes deals under discussion in around 150 U.S. markets.
Marriott has also expanded the midscale Four Points Express by Sheraton brand in other regions, launching it in the Asia-Pacific and Europe, Middle East and Africa regions, the company shared Tuesday.
“There is opportunity and demand, both from our owners and franchisees, for products within our system in this [middle] tier, and also from consumers who would like to take advantage of the opportunity to have products that Marriott has in this tier,” Silverman said.
He added that Marriott will continue its midscale push in an effort to provide “the right hotel in the right place [to] the right consumers” for “whatever their trip purpose is and whatever their targeted price point is.”
Marriott peer IHG Hotels & Resorts is similarly expanding in the midscale segment with conversion brand Garner, which launched in August and opened its inaugural location just three months later.
