Currently working under the name Project Mid-T by Marriott, the new concept will be focused on conversion opportunities in the U.S. and Canada with options for new-builds, as well. No further information, including an official launch date, was made available on the convention floor.
Capuano first mentioned the brand during Marriott’s fourth-quarter and full-year 2023 earnings call with investors. “Leeny [Oberg, Marriott’s CFO] and I tend to climb over each other with enthusiasm to talk about midscale,” he said at the time. “We think there's a tremendous market opportunity from a demand perspective. There is a deep appetite from our franchise community. We think the cost of developing midscale will help our partners navigate what is still a challenging financing environment.”
During the company’s first-quarter earnings call, Capuano noted that conversion-friendly brands are particularly important given some of the challenges in the debt markets. “The reality is [that] given the climate for new-construction debt in the U.S., having a platform that can easily pivot between both new-build and conversion opportunities, the timing seems ideal to launch something in that space,” he said.
According to the company, Project Mid-T by Marriott will offer a “light operational model” and “functional modern design” to help owners capitalize on growing consumer demand, while taking advantage of Marriott’s sales, distribution and marketing engines.
The brand will use a “kit of parts” conversion approach and will have a furniture, fixtures and equipment program designed to adapt to various building configurations. The 10.5 percent bundled fee will include franchise royalty, per-square-foot, loyalty and marketing fees.
By Jena Tesse Fox
