Marriott International is embarking on an ambitious luxury expansion, betting on a massive generational wealth transfer to fuel demand for high-end experiential travel over the next two decades.
Marriott said Tuesday that it has more than 260 luxury properties in its development pipeline, roughly a 50% increase from today’s 529 properties.
The expansion comes as Marriott positions itself to capture spending by millennials and Gen Z travelers, who are expected to inherit $80 trillion globally over the next two decades.
As Baby Boomers retire, they’ll pass wealth to a new generation that increasingly values experiences rather than material luxury, said Tina Edmundson, Marriott’s luxury president at the International Luxury Travel Market in Cannes.
Marriott’s luxury brands are increasingly pursuing partnerships and pop-up events with premium brands to attract younger affluent consumers, Edmundson said.
Younger affluent travelers often prioritize experiences over traditional material luxury. So the world’s largest hotelier is responding by expanding into new categories, such as private member clubs, all-inclusive resorts, and luxury yachts. Upcoming projects include opening multiple safari lodges in Africa, marking the company’s first entry into this segment.
The company’s luxury portfolio includes brands like Ritz-Carlton, St. Regis, and Edition. Marriott saw key openings this year, including The Ritz-Carlton’s first property in Morocco, St. Regis’s entry into Serbia, and W Hotels’ return to the Las Vegas Strip through a licensing agreement with MGM Resorts International. Next year, Marriott will open about 30 luxury hotels.
Accommodations Sector Stock Index Performance Year-to-Date
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