khabah

Marriott's latest brand has been announced under the working title of Project MidX. This will be an affordable midscale, extended stay brand in the same ilk as the recently announced Hyatt Studios and Project H3 from Hilton.

Sigh.

khabah

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Marriott International Announces Plans to Expand in Affordable Midscale Segment with New Extended Stay Lodging Brand

JUNE 5, 2023 — BETHESDA, MD

Building Off Industry Leadership in Extended Stay, Marriott International Plans to Launch Affordable Midscale Extended Stay Offering in U.S. & Canada

Marriott International, Inc. (Nasdaq:MAR) announced today, in connection with the 2023 NYU International Hospitality Industry Investment Conference, its plans to further expand in the affordable midscale lodging segment, following its recent entry into the segment with City Express by Marriott in Latin America. Consistent with the company’s approach to meeting the needs of guests with regionally relevant lodging products for every stay purpose, Marriott is announcing its plans to launch a new brand, which has not yet been named, but is currently being referred to as Project MidX Studios. The affordable midscale extended stay brand is intended to deliver reasonably priced modern comfort for guests seeking longer stay accommodations in the U.S. & Canada.

“Marriott has long believed in having the right accommodations in compelling destinations at the right price point. 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,” said Marriott International President and CEO Anthony Capuano.

As the leader in extended stay lodging with brands like Residence Inn by Marriott, Element by Westin, TownePlace Suites by Marriott, Marriott Executive Apartments and more recently, Apartments by Marriott Bonvoy, Project MidX Studios reflects the company’s deep experience and learnings from its guests, owners, and franchisees. Marriott incorporated this input to create a brand that will deliver a great guest experience while reducing building and operating costs for owners and franchisees.

“Based on everything we’ve seen and heard, our team is excited about Marriott’s entry into the affordable midscale segment, where Concord has been engaged for many years,” said Mark Laport, President and Chief Executive Officer, Concord Hospitality. “In collaboration with Whitman Peterson, we expect to break ground on three Project MidX Studios this year, with anticipated openings 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.”

“With Project MidX Studios, we are focused on enhancing the breadth of our portfolio through the creation of a product specially designed for the affordable midscale extended stay tier—from the physical product to the operating model. The team created Project MidX Studios to reach both new customers and new markets. We are excited to join forces with Concord Hospitality and Whitman Peterson on our first three projects and are in discussions with owners for more than 250 new development opportunities under this brand,” said Leeny Oberg, Chief Financial Officer and Executive Vice President, Development for Marriott International.

Benefits to Owners
Project MidX Studios, expected to be Marriott’s most affordable cost-per-room product in the U.S. & Canada, is designed to enable accelerated speed-to-market with a low cost to build. Theprototype model targets a build cost of $13 million to $14 million, requiring approximately 54,000 square feet of total building area for 124 studios. The brand is also expected to have a light operational cost model for owners and franchisees.

The brand will be part of the company’s award-winning Marriott Bonvoy loyalty platform with over 180 million members. It will leverage Marriott’s world class Global Sales Organization, including Marriott’s dedicated Extended Stay sales team, and strong digital platforms like Marriott.com and the Marriott Bonvoy mobile app, to generate direct bookings. The new brand is expected to have tailored Marriott Bonvoy redemption options appealing to the target guest.

“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 International’s Global Development Officer for U.S. & Canada. “With trends towards longer-stay travel and increased work flexibility, Marriott is utilizing its experience in extended stay to deliver a fresh solution to meet the needs of a growing customer base, backed by Marriott’s powerful demand engines and revenue systems. With our plans for Project MidX Studios, we will have an extended stay product in every lodging tier—from affordable midscale to upper upscale and luxury—for our customers and our owners and franchisees.”

Benefits to Customers
Project MidX Studios will deliver a streamlined, light-touch, digital-first operating model that focuses on the needs of a budget conscious consumer, with conveniences like pay-and-go retail and check-in with Marriott Mobile Key. The brand is designed for guests in search of affordable, flexible accommodations for an extended stay, typically 20+ nights or more, who are seeking to pay around $80 per night, depending on the market and demand.

With a smart, modern, and functional design, Project MidX Studios will include spacious suites offering both single or double queens, in-room kitchens and ample closet space. They will feature on-site guest laundry, gym, and pet-friendly facilities—and come with the company’s unwavering commitment to comfort, care, and cleanliness.

To learn more about Project MidX Studios, visit (www.marriottdevelopment.com).


Project MIDX Studios external rendering

Project MIDX Studios floor plan renderings

Project MIDX Studios room rendering

dw

Like the new Hilton concept, looks like extremely limited F&B ops (at most a market with hot coffee but I don't even see that on the floor plan, but the lobby area is cut off). It's possible there will be no complimentary breakfast at all, which of course goes to the operational savings (in particular, on labor) for owners.

UKTraveller4Fun

Yet another brand I will be avoiding, is it just me or is it starting to get a little silly now!

TXJeepGuy

I feel like this hits the same niche as a couple existing brands

NDN

This is clearly meant for essential workers such as travel nurses. It may also be decent for small consultants to use. The focus is on budget. A travel nurse or doctor just wants a place to stay with a kitchen. A small consultant needs the same. Both want lower prices because the remaining money goes to their own pockets.

Out of my Element

$80/night?

Where???

Not in any cities in the USA, that's for sure.

HHonors OUTSIDER

The limited F&B options and no breakfast makes sense because of the in room kitchen. Home2 suites breakfast that I have been experiencing have gone way down hill but the mattress in the newer locations have improved. So hopefully they use good mattresses for this new brand. Also I think the kitchen is in a better location than Home2 suites. Lastly I wonder if the average room rates will be significantly lower than Residence Inn, Element and the other competitors brands?

Horace

With no breakfast, no social hour, much smaller rooms than Residence Inn (not much bigger than Fairfield Inn rooms), probably very limited housekeeping, probably a rate structure that encourages genuinely long stays, and not even a porte cochere, this new brand will have a low cost structure for the owner and will attract guests who expect a low nightly rate, want to avoid restaurant meals, and are willing to give up the amenities of higher-end extended-stay brands.

Unlike Springhill Suites, there's a kitchen that's sufficient for the guest to prepare breakfast and any other meals (and the rooms are smaller than at Springhill Suites).

Of course, location enters into the rate equation. I find it interesting how Moxy can often charge high rates, despite tiny rooms, when that Moxy is on a small, well-located urban lot. However, I don't expect this from the new extended-stay brand.

DJ_Iceman

So are we guessing this will be a "5 points per dollar" brand? Or elite night credit only every two nights stayed?

dw

Both

LiqAlchemy

Will see how the finish product looks and feels, will differ from rendering.

jaejaez

I think Bonvoy has too many brands already. Should work to merge overlapping brand positions and to standardize rather than adding even more.

Out of my Element

They won't stop until they have 365 brands, with point bonuses for anyone who stays in each brand within a calendar year.

Horace

Marriott does not have an extended-stay brand that's similar to this new brand. These aren't suites, or even studios. These are rooms with kitchens (not just fridges and microwaves), minimal living space, and no breakfast service. It's fundamentally a different model than Residence Inn, Element, Towneplace Suites, Springhill Suites, or Marriott Executive Apartments. It serves a different need.

I've never stayed at an Extended Stay America or anyplace similar to that, and I probably never will. I'm not their target customer. But I think Marriott sees this market segment as a growth opportunity. If developers are going to build low-end, cook-your-own-meals extended-stay properties to go after this market, then Marriott wants to be part of it.

yyzflyer

This is a TownePlace Suites with a Moxy-size room and likely no breakfast. TownePlace were supposed to fill a similar gap below Residence Inns, but with the reduction in RI services post-pandemic the two brands are almost the same in service and rates. These seem destined for the same fate if they fail to deliver on the price point in urban areas or have to be located where one needs to drive everywhere to eat, for example.

Count me with those who think Marriott has way too many brands.