Marriott International to expand in midscale segment with new extended stay lodging brand

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," says Marriott International president and CEO Anthony Capuano.

Project MidX Studios aims to reflect 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.

"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," says 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. The prototype 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.