Marriott Extends Exec. Stay
Marriott International is launching an upscale third brand in the extended stay market it has worked so hard to corner in recent years. Marriott Executive Residences will be aimed at global business executives whose overseas assignments take them out of their home country for 30 days or more.
The residences, generally attached to an existing Marriott property, will be in cosmopolitan, downtown locations of major cities. All will feature hotel-like amenities, full kitchens and security, and will offer short-term leases.
The first property to open under the new brand will be the Millennium Court in Budapest later this year. "We expect to open 25 properties by the year 2000,'' said Ed Fuller, Marriott Lodging International executive vice president and managing director, at a press conference in London.
Marriott is targeting primarily Eastern Europe and the Far East, but it also is scouring for United States and Western European locations. The most likely cities in the United States are New York, Miami and San Francisco.
Executive Residences becomes the sixth Marriott brand. The core extended stay product is Residence Inns, which is aimed principally at the U.S. market, as is the budget TownePlace Suites brand, launched this time last year.
Not only is Executive Residences focused on the international market, but average stays will be much longer than the 14 days that are typical of the two domestic brands. Marriott anticipates that the average stay will be four months, but in many cases it will run to well over a year.
Pricing also will be significantly different because the new brand is geared toward the senior to mid-level executive, Fuller said. Rates will probably mirror those of major five-star Marriott properties in large cities, he said.
Despite the high prices, Marriott is confident it has identified an untapped market. "The competition is fragmented and wide open to a global management company like Marriott,'' said brand development director Lisa Ross. "The current distribution is poor, and it is difficult to find a property in these cities if you are not in the know.''
Marriott also is relying on the fact that good-quality rented accommodations are in short supply, particularly in Eastern Europe, where there also are significant security worries. All properties will have a reception and security desk, plus housekeeping every other day, twice-weekly linen changes, a limited business center, food and beverage service from the nearby Marriott hotel or a grocery, and laundry delivery services.
Other amenities offered by the hotel include a fitness center, recreation room for weekly hospitality hour or parties, on-site parking and storage. The apartments feature fully equipped kitchens, washing machines and dryers, dedicated work area, two telephone lines with voicemail, mini-stereo system, television and videocassette recorder.