{"id":90086,"date":"2024-07-18T11:17:06","date_gmt":"2024-07-18T14:17:06","guid":{"rendered":"https:\/\/murray.adv.br\/?p=90086"},"modified":"2024-07-18T11:17:07","modified_gmt":"2024-07-18T14:17:07","slug":"marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil\/","title":{"rendered":"Marriot plans economic brand, rival with Accor, Hilton in Brazil"},"content":{"rendered":"\n<h6 class=\"wp-block-heading has-text-align-center\"><em><strong>Plan includes 2,500 City Express rooms; focus on Ibis brand investors, independent groups<\/strong><\/em><\/h6>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>07\/18\/2024<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/s2-valorinternational.glbimg.com\/AcxLyUuvUKFauAYT0DhJwYtRW8M=\/0x161:3840x2364\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/G\/O\/slckX6RHOR9iIAngdqvw\/120724marriott15.jpg\" alt=\"Vanessa Martins \u2014 Foto: Gabriel Reis\/Valor\" style=\"width:570px;height:auto\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><em>Vanessa Martins \u2014 Foto: Gabriel Rei<\/em>s\/Valor<\/p>\n\n\n\n<p>The\u00a0<strong>Marriott International<\/strong>\u00a0hotel chain is moving with its plan to enter the economy and midscale segments with the arrival of the\u00a0<strong>City Express<\/strong>\u00a0brand in Brazil. According to Vanessa Martins, top executive of Marriott Brazil, the chain has three letters of intent signed and 10 more projects under negotiation. The plan is to achieve 2,500 rooms under this brand in Brazil in the medium term\u2014between two and four years.<\/p>\n\n\n\n<p>Marriott\u2019s move increases competition in the segment, currently dominated by French chain Accor with its Ibis brand.<\/p>\n\n\n\n<p>In May, the&nbsp;<strong>Hilton<\/strong>&nbsp;chain also announced plans to bring its new brand Spark to Brazil and become an alternative to Ibis hotel owners when contracts for properties currently in operation are approaching their renewal period.<\/p>\n\n\n\n<p>\u201cThe midscale and economic segments are growing not only in Brazil. In the region, Marriott entered this category with the recent acquisition of City Express. It is a 20-year-old brand, which is strong in its markets,\u201d Ms. Martins said, in an interview with&nbsp;<strong>Valor<\/strong>. City Express currently has 150 hotels, with 10 others in its pipeline\u2014in total, there are five brands added. The operation is focused on Mexico, Colombia, Chile, and Costa Rica.<\/p>\n\n\n\n<p>Marriott announced the chain acquisition in October 2022 but the deal was only completed in the second quarter of 2023, after regulatory approvals.<\/p>\n\n\n\n<p>With the deal, Marriott added 17,500 rooms to its portfolio and became the largest company in the Caribbean and Latin America region, with almost 500 properties, rivaling&nbsp;<strong>Accor<\/strong>, with around 450. In Brazil, however, Accor is the leader.<\/p>\n\n\n\n<p>According to data from the Forum of Hotel Operators of Brazil (FOHB), the economic segment is the largest in the domestic hospitality industry, accounting for 46% of properties. The midscale segment represents 36%, while the upscale segment has 16%, and resorts account for 2%.<\/p>\n\n\n\n<p>Accor is the market leader, with 332 hotels in Brazil, 240 of which are part of the Ibis family (including the Ibis, Ibis Budget, and Ibis Styles brands). That means 72% of the French company\u2019s portfolio is in Brazil.<\/p>\n\n\n\n<p>Despite leading in the region, Marriott currently has only 12 hotels in Brazil, with a total of 3,197 rooms and eight brands.<\/p>\n\n\n\n<p>Ms. Martins said the group is more attentive to opportunities in Brazil and seeks to grow in all segments. She points out that central cities like S\u00e3o Paulo still have a lack of room supply, especially in the luxury segment. The company launched its first luxury hotel in S\u00e3o Paulo, the JW Marriott, only in 2022.<\/p>\n\n\n\n<p>\u201cWe see many brands arriving. There is demand in the midscale market, Other brands could arrive and bring innovation. We want to be an alternative for building owners and customers,\u201d she said.<\/p>\n\n\n\n<p>The strategy involves expanding City Express in the country\u2019s fastest-growing markets, including primary destinations, such as S\u00e3o Paulo, and secondary and tertiary destinations, which are seeing strong tourism growth\u2014the countryside of S\u00e3o Paulo, for example, has been on the industry\u2019s radar.<\/p>\n\n\n\n<p>Low competition in the segment prompted Hilton to seek to gain ground with Spark, the group\u2019s conversion brand. The project has been adapted for the Brazilian market. While in the United States, the average size of a Spark room is 24 square meters, in Brazil it will be 16 square meters, which is in line with the Ibis portfolio.<\/p>\n\n\n\n<p>In the same direction, City Express rooms will start at 16 square meters but the expected average is between 18 and 22 square meters.<\/p>\n\n\n\n<p>Marriott also sees an opportunity to use the City Express brand to attract independent hotel owners, a strong segment in Brazil. \u201cOne of the tools we have for making hotels enter our portfolio is the [Marriott Bonvoy] loyalty program. We have more than 200 million members. In Brazil alone there are 1.1 million,\u201d she said.<\/p>\n\n\n\n<p>Conversion is a strong strategy, especially at a time of high interest rates, which makes the construction of new buildings more expensive. Last year, 35% of Marriott\u2019s pipeline in Latin America and the Caribbean resulted from conversion. \u201cWe are very strong in markets sought by Brazilians, like Miami and Orlando. It\u2019s a well-known portfolio,\u201d the executive pointed out.<\/p>\n\n\n\n<p>The group is also advancing in other segments, with openings in the luxury sector with the W S\u00e3o Paulo and W Residences S\u00e3o Paulo\u2014at the end of 2024\u2014, and the Westin S\u00e3o Paulo (premium segment), in 2025. Globally, Marriott posted net earnings of $564 million in the first quarter, a drop of 25% year-on-year amid higher operating costs.<\/p>\n\n\n\n<p>After the strong impact of the pandemic, the business is now favorable. The group does not disclose further details but the executive says the operation has recovered from the pandemic levels. \u201cIt\u2019s encouraging to see the market situation today,\u201d she said, pointing out the strong increase in the number of events, such as the Madonna concert, which took place in Rio, and the G20 scheduled for the end of the year.<\/p>\n\n\n\n<p>*Por Cristian Favaro\u00a0\u2014 S\u00e3o Paulo<\/p>\n\n\n\n<p>Source: Valor International<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/valorinternational.globo.com\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Plan includes 2,500 City Express rooms; focus on Ibis brand investors, independent groups 07\/18\/2024 Vanessa Martins \u2014 Foto: Gabriel Reis\/Valor The\u00a0Marriott International\u00a0hotel chain is moving with its plan to enter the economy and midscale segments with the arrival of the\u00a0City Express\u00a0brand in Brazil. According to Vanessa Martins, top executive of Marriott Brazil, the chain has [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[25295,25293,25294],"class_list":["post-90086","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-hilton-in-brazil","tag-marriot-plans-economic-brand","tag-rival-with-accor"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Marriot plans economic brand, rival with Accor, Hilton in Brazil - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Marriot plans economic brand, rival with Accor, Hilton in Brazil - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"Plan includes 2,500 City Express rooms; focus on Ibis brand investors, independent groups 07\/18\/2024 Vanessa Martins \u2014 Foto: Gabriel Reis\/Valor The\u00a0Marriott International\u00a0hotel chain is moving with its plan to enter the economy and midscale segments with the arrival of the\u00a0City Express\u00a0brand in Brazil. According to Vanessa Martins, top executive of Marriott Brazil, the chain has [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murray.adv.br\/en\/marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil\/\" \/>\n<meta property=\"og:site_name\" content=\"Murray Advogados\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-18T14:17:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-18T14:17:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s2-valorinternational.glbimg.com\/AcxLyUuvUKFauAYT0DhJwYtRW8M=\/0x161:3840x2364\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/G\/O\/slckX6RHOR9iIAngdqvw\/120724marriott15.jpg\" \/>\n<meta name=\"author\" content=\"Gelcy Bueno\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gelcy Bueno\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/murray.adv.br\/en\/marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil\/\"},\"author\":{\"name\":\"Gelcy Bueno\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"headline\":\"Marriot plans economic brand, rival with Accor, Hilton in Brazil\",\"datePublished\":\"2024-07-18T14:17:06+00:00\",\"dateModified\":\"2024-07-18T14:17:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/murray.adv.br\/en\/marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil\/\"},\"wordCount\":849,\"image\":{\"@id\":\"https:\/\/murray.adv.br\/en\/marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/s2-valorinternational.glbimg.com\/AcxLyUuvUKFauAYT0DhJwYtRW8M=\/0x161:3840x2364\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/G\/O\/slckX6RHOR9iIAngdqvw\/120724marriott15.jpg\",\"keywords\":[\"Hilton in Brazil\",\"Marriot plans economic brand\",\"rival with Accor\"],\"articleSection\":[\"Murray News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/murray.adv.br\/en\/marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil\/\",\"url\":\"https:\/\/murray.adv.br\/en\/marriot-plans-economic-brand-rival-with-accor-hilton-in-brazil\/\",\"name\":\"Marriot plans economic brand, rival with Accor, Hilton in Brazil - 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