Marriott International unveiled more details about its upcoming midscale extended-stay brand, currently known as Project MidX Studios.
In a news release, Marriott said the new brand is a further extension into the midscale segment following its acquisition of the City Express brand portfolio. Project MidX Studios is aimed at delivering “reasonably priced modern comfort” to guests needing longer stays in U.S. and Canadian markets.
“Marriott has long believed in having the right accommodations in compelling destinations at the right price point,” Marriott President and CEO Tony Capuano said in the release. “Whether our guests are traveling for business, leisure or a mix of both, our portfolio of 31 brands offers something for everyone. As consumers look for new, flexible accommodation solutions, we are thrilled to announce our plans to launch an affordable midscale extended-stay offering to meet the needs of guests seeking long-term comforts at a moderate price point.”
Capuano had teased the new extended-stay brand during the company’s first-quarter earnings call.
Marriott has several extended-stay brands in its portfolio, including Residence Inn by Marriott, Element by Westin, TownePlace Suites by Marriott, Marriott Executive Apartments and Apartments by Marriott Bonvoy.
New Development
Hotel management and development company Concord Hospitality is working with private equity firm Whitman Peterson to develop the first three Project MidX Studios projects, according to the release.
Concord President and CEO Mark Laport said his company has been active in the affordable midscale segment for years, and Marriott’s entry is an exciting development. Concord and Whitman Peterson expect to break ground on the three properties later this year, and they anticipate the hotels will open in late 2024 or early 2025.
“Marriott’s track record in extended stay and strong owner value proposition are compelling and driving our interest in growing this brand within our portfolio,” Laport said in the release.
Marriott expects Project MidX Studios to be the company’s most affordable cost-per-room product in the U.S. and Canada, according to the release. The brand is designed for faster speed to market with a low cost to build. The prototype model has a targeted build cost of $13 million to $14 million. It requires roughly 54,000 square feet of total area with 124 studio units. The company also expects the brand to have a light operational cost model.
“Marriott has been working closely with owners and franchisees to develop a product that has a compelling value proposition and a highly efficient operating model,” said Noah Silverman, Marriott’s global development officer for the U.S. and Canada.
Guest Focus
The new brand will focus on the needs of budget-conscious guests and offer them “a streamlined, light-touch, digital-first operating model,” according to the release. Guests will be able to use pay-and-go retail and Marriott’s Mobile Key check-in.
The brand is targeting guests who are typically looking to stay for at least 20 nights and pay about $80 per night. That rate may vary based on market demand.
Project MidX Studio’s suites will include single- or double-queen beds, in-room kitchens and ample closet space. There will be an on-site guest laundry, gym and pet-friendly facilities.