Marriott International hotels have plans to introduce a European-based hotel chain that targets younger, tech-and design-savvy travelers to the U.S., according to USA Today. The hotel brand will bring AC Hotels by Marriott, a Madrid-based, mid-priced brand that it partnered with in 2011 to broaden its European presence.
The hotel chain is hoping to capitalize on the Millennial market and their growing purchasing power.
"It's the right time to bring it to the U.S.," Brian King, the global brand officer for Marriott Endorsed Brands, said. "You import wine and you import cars.
"We're going to import a hotel brand," King said.
Marriott has been focusing their marketing on generation X and Y travelers recently, having also partnered with the Swedish furniture company IKEA to launch Moxy, a budget chain in Europe.
The company plans to run the AC Hotels by Marriott as a joint venture in the U.S. There are already 79 hotels spread throughout Spain, Portugal, France and Italy.
According to hoteliers and market researchers, Millennials are unique travelers because they want to stay constantly connected with social media and they look for coffeehouse-like spaces to work and spend leisure time. They also want unique and local amenities, which Marriott hopes to provide with the new partnership.
Marriott plans to go into additional details about the partnership at the 35th Annual New York University International Hospitality Industry Investment Conference.
"This generation...they grew up with Gilt, Target, Fab.com, Apple," King said. "These brands are affordable and stylish and they're great-looking and they feel curated.
"And that's what AC Hotels is," King continued.
Other hotel companies have also been trying to capitalize on youth appeal to attract new customers, says Chekitan Dev, an associate professor at Cornell University's School of Hotel Administration and the author of "Hospitality Branding."
"There are multiple brands that are capitalizing on the Millennial demand growth with smart design and advanced technology," Dev said. "This space is expected to grow."
Millennials outnumber Baby Boomers, with about 70 million Millennials compared to 76 million Baby Boomers. By 2030, the number of Millennials is expected to exceed the number of Baby Boomers by 22 million, according to the United Nations Department of Economic Social Affairs.
"As the economy improves and development slowly starts to return, it is a natural progression that the hotel companies will go after the next generation of business travelers," C. Patrick Scholes, a gaming and lodging analyst for SunTrust Robinson Humphrey, said.
This article is copyrighted by Travelers Today, the travel news leader
