Marriott International is setting its sights on middle-class travelers with its newest hotel brand, temporarily dubbed Project Mid-T. This innovative brand is positioned in the "midscale" hotel category and is designed primarily for converting existing hotels and repurposing office spaces.

Targeting the Midscale Market

Marriott's president and CEO, Anthony Capuano, initially hinted at this new brand during an early May earnings call but saved the details for a more fitting occasion. On Monday, at the New York University International Hospitality Industry Investment Conference, the company unveiled the comprehensive plans to developers and owners.

Project Mid-T aims to cater to transient leisure and business travelers, with an average stay of 1.8 nights. Diana Plazas-Trowbridge, Senior Vice President and Global Brand Leader for Select-Service Brands, emphasized the brand's focus on ease and efficiency. “We’re really focused on making it an easy process for the owner to convert existing assets into this new brand,” said Plazas-Trowbridge. “For consumers, we’re meeting demand at a particular price point we weren’t reaching before with guestrooms with a few key signature items, simple fitness, complimentary simple breakfast, and open social spaces in the lobby.”

Key Features of Project Mid-T

Conversion-Friendly Design: Project Mid-T is built to facilitate quick conversions of existing hotels or adaptive reuse of office spaces. The brand offers a variety of guest room sizes to accommodate different market needs, from family travelers to business guests.

Simplified Fee Structure: To attract developers, Marriott is introducing a bundled fee structure for the first time with Project Mid-T. This 10.5% fee covers franchise royalty, loyalty, marketing, and other costs, providing clarity and predictability for owners.

Modern Guest Rooms: Each room will feature essential amenities such as open closets, work surfaces, and efficient storage solutions.

Business-Friendly Lounge: The lounge will include long communal tables equipped with power strips and TVs, making it a convenient space for business travelers.

Basic Fitness Facilities: The gym will offer three cardiovascular machines, free weights, and other basic fitness amenities to meet guests' workout needs.

Meeting Market Demand

Capuano pointed out that the recent increase in interest rates has posed challenges for developers looking to build new hotels from scratch. This has created an opportunity for conversion brands like Project Mid-T. Marriott's new brand joins a growing trend among hotel groups catering to the midscale segment, positioned between upscale luxury brands and economy options.

Expanding Marriott's Portfolio

Project Mid-T is a key part of Marriott's broader strategy to penetrate the affordable midscale space. Last year, Marriott introduced several midscale brands, including Four Points Express by Sheraton in Europe, StudioRes in North America, and City Express in Latin America and the Caribbean.

Noah Silverman, Global Development Officer for U.S. and Canada, highlighted the brand's alignment with market needs. “We saw an opportunity given conversations with our owners and franchisees and consumer demand for solutions within our system,” said Silverman.

Other major hotel groups are also expanding in this segment. IHG recently launched its Garner midscale conversion brand, Hilton introduced the Spark midscale conversion brand, and Hyatt debuted Hyatt Studios, an "upper-midscale" conversion brand.

Looking Ahead

With Project Mid-T, Marriott aims to provide a versatile, cost-effective solution for both developers and travelers. This new brand underscores Marriott's commitment to innovation and adaptability in the ever-evolving hospitality industry. As the brand continues to develop, it promises to redefine midscale hospitality and deliver exceptional value to its guests and owners alike.

4o