How Marriott Is Defending its Lead in Branded Residences

Marriott International is capitalizing on the growing demand for branded residences, leveraging its hospitality expertise to dominate a sector that industry analysts expect will double in size in less than a decade.

The hospitality giant has established itself as the leader in the branded residential space with 142 operational properties and 138 more in development — a portfolio that has expanded by more than half since the end of 2019.

"There are a lot of people out there who want to buy a condo," said Dana Jacobsohn, chief development officer, North America, luxury brands and global mixed-use. "The idea of a lock-and-leave lifestyle is very appealing."

Marriott's strategic expansion comes as Savills forecasted last year that the number of branded residential developments is set to double over the next seven years. The real-estate consulting firm predicted 790 new developments across 100 countries by 2031.

Marriott faces competition. Accor, Four Seasons, and Hilton are its closest rivals by property count. Ultra-luxury players like Aman, The Peninsula, and Montage have been expanding their residential offerings, too.

Marriott's Lead in Branded Residences

Marriott entered the segment in 2000, but has recently been experiencing a growth tear.

The U.S. and Canada remain Marriott's strongest markets, with 77 open residences and 41 planned. 

Florida has emerged as a particular stronghold for Marriott's luxury residential offerings, with prominent developments including St. Regis Residences in Longboat Key outside of Sarasota, St. Regis Residences Bahia Mar, Ft. Lauderdale, and The Ritz-Carlton Residences, Estero Bay, in Bonita Springs.

However, the company is seeing the most aggressive growth in the Caribbean and Latin America, where Marriott has 15 properties operating and 42 more in development.

Premium Push

Marriott's luxury residences — including St. Regis and Ritz-Carlton properties — form the core of its residential portfolio, with 115 open locations and 91 in planning. Yet the company is accelerating development in its premium segment.

This premium category now includes 26 operating properties, with 46 more in the pipeline. It targets affluent buyers seeking brand association without ultra-luxury prices.

Among those premium brands are El Mangroove Residences, Autograph Collection in Costa Rica; Westin Gurugram in India; Marriott Residences, Grand Marina Saigon in Vietnam; and Affini Tribute Portfolio Residence in Dubai.

Residences With No Hotels Attached

A significant strategic shift for Marriott is its increasing focus on standalone residential projects — properties not attached to hotels — which now comprise 28% of its development pipeline.

This approach allows the company to enter markets that may not support a luxury hotel but have demographics conducive to upscale condominium developments, Jacobsohn said.

Marriott is building these properties in cities where it has hotels, such as London’s The Lucan, Autograph Collection, but also where it doesn’t have outposts with these brands, such as The Ritz-Carlton Residences in Woodlands, north of Houston, Texas, and St. Regis Residences in Casares, Costa del Sol, Spain (set to open in 2027).

There are also opportunities to do multiple residential units if the standalone project thrives, the executive said.

Staying Competitive

This is Marriott’s 25^th year in branded residences, and the leader has upstarts nipping at its heels. Savills expects that over the next five years, 60 new brands will launch, and non-hotel branded projects will continue to grab market share.

Hotel operators accounted for 81% of branded residences, with two-thirds of those in the luxury segment. Non-hotel brands comprised the rest, and Savills expected that share to grow.

Jacobsohn said Marriott manages its branded residences, differentiating itself from other hotel companies, which often work with third parties.

Marriott also promises more than just life in a condo.

“We're offering an elevated lifestyle, a community, programming,” she said.

For example, Jacobsohn points to its ownership program, Onvia, which gives residents preferential treatment at Marriott hotels. The company knows enough about residents’ needs to customize their hotel stays.

Another selling point is that buyers of luxury units typically receive a few years of premium tier status in Marriott's loyalty program, which gives them perks when they stay at hotels.

Multi-Family Units

Jacobsohn said the hospitality giant is continuing to innovate. She cited a W Hotel currently under construction in Cleveland that includes multi-family rentals, a first, which was an idea that came from developers.

With interest rates elevated and likely to stay higher, she said any new luxury hotel project will likely include a residential component because of the high capital costs of building a hotel. Residential sales bring in cash flow while the hotel is being built.

The optimal mix of residences-versus-hotel-rooms depends on the market, she said.

"A developer often will want to have as few hotel keys as possible and as many residential units as possible," Jacobsohn said. "But it's very important for us at Marriott that the hotel is economically feasible because we're looking for longevity."

Accommodations Sector Stock Index Performance Year-to-Date

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Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.