Marriott International Inc. said it plans to double the number of hotel rooms it has in Europe within five years to take advantage of growth in tourism and business travel.
The world’s second-largest publicly traded hotel company will have signed or opened 150,000 rooms in the region by 2020, compared with 74,000 today, according to a statement on Monday. Most of the growth will come from properties aimed at business and budget travelers through the Moxy Hotels and Courtyard brands.
“Europe is still the most popular destination in the world,” Amy McPherson, European president of Marriott International, said in an interview on the sidelines of the International Hotel Investment Forum in Berlin. “London is strong, the U.K. provinces are strong, and in Germany we’ve had a pretty good start to the year.”
Hotel occupancy grew 2.1 percent in Europe last year, the best performance in a decade, while revenue per available room rose about 6 percent, according to data compiled by PriceWaterhouseCoopers LLP.
Marriott has a 1 percent market share in Europe, a more fragmented region than the U.S. where the company operates about 10 percent of hotels, according to Chief Executive Officer Arne Sorensen. By the end of 2016, more than 1,000 rooms will be added in Russia and three Moxy hotels,a boutique budget brand, will open in London.
“A lot of the growth we’re driving is simply about taking share,” said Sorensen.
Marriott is in talks to open Edition hotels in Paris, Barcelona and Madrid, after opening its first European property in London in 2013, Sorensen said. Marriott would also consider adding Editions in Berlin and Ibiza, and opening Ritz-Carltons in Madrid and Rome, McPherson said.
Bethesda, Maryland-based Marriott operates and franchises 4,100 hotels in 79 countries.
This article was written by Dalia Fahmy from Bloomberg and was legally licensed through the NewsCred publisher network.