Marriott International Inc. has revealed plans to further expand in the affordable midscale lodging segment with the launch of a new midscale extended-stay brand, which has not yet been named but is currently being referred to as Project MidX Studios.
The brand is intended to deliver reasonably priced modern comfort for guests seeking longer stay accommodations in the U.S. & Canada, the company reports.
“Marriott has long believed in having the right accommodations in compelling destinations at the right price point,” said Anthony Capuano, president/CEO, Marriott International. “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.”
Concord Hospitality is an early adopter of the brand. “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/CEO, 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.”
Leeny Oberg, CFO/EVP, development, Marriott International. “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.”
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, the company reports. The prototype model targets a build cost of $13 million to $14 million, requiring approximately 54,000 sq.ft. of total building area for 124 studios. The brand is also expected to have a light operational cost model for owners and franchisees.
“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, global development officer for U.S. & Canada, Marriott. “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.”
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 company reports. 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 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.
