Marriott International, Inc. (NASDAQ: MAR) announced today the signing of franchise contracts for five new Fairfield by Marriott hotels together with management contracts for a Courtyard hotel and a Marriott Hotel in China. The signing demonstrates Marriott’s commitment in expanding and deepening its collaboration with Chinese hotel partners.
The five franchised Fairfield by Marriott Hotels will all be managed by Eastern Crown Hotels Group as part of the Development Agreement it reached with Marriott International in early 2016. The new properties are the Fairfield by Marriott, Chongqing Riverside, with 119 rooms; Fairfield by Marriott, Dongguan Changping, with 196 rooms; Fairfield by Marriott, Meizhou South, with 100 rooms; Fairfield by Marriott, Foshan Nanhai, with 248 rooms, and Fairfield by Marriott Nanning Nanhu Park, with 190 rooms.
The new Courtyard by Marriott hotel will be located in Chengdu’s Tianfu New District and will offer 315 rooms and lively social spaces. Also signed today is the company’s signature brand Marriott Hotel in Jinhua, which is Marriott’s first property in the city. The hotel will have 279 rooms and full-service amenities including two restaurants, a lobby lounge, and 1,700 square meters of of meeting space.
In total, these seven new agreements will add over 1,400 new rooms owned by Marriott’s Chinese partners.
“China is a highly important market. Our signing of these agreements reflects our goal to meet the needs of both international and domestic visitors by introducing hotels carrying Marriott’s brands in close partnership with Chinese hotel management and ownership companies,” said Mr. Arne Sorenson, President & Chief Executive Officer of Marriott International, on his visit to Shanghai for the signing with Chinese partners. “China is our largest market outside the U.S., and we are very confident in its continued growth, especially in view of the rising disposable incomes of the middle class and development of the consumer-led economy.”
“These agreements represent an important component of Marriott International’s model for growth around the world – to work with local partners who have the right local expertise, knowledge and skills, and who share our own values and culture. This is particularly true in China, where the majority of our hotels are owned by Chinese partners. I am delighted that we are working with our trusted partner Eastern Crown to rapidly expand our Fairfield by Marriott brand in China. Chairman Cheng and his team at Eastern Crown hold high standards of quality in their hotel products and management.” added Mr. Sorenson.
Eastern Crown Hotels Group is a privately held, Guangzhou-based lodging company that specializes in franchising and operating select-service hotels. It currently has a portfolio of over 900 hotels either open or under development in more than 200 cities in China, Malaysia and Belarus.
Mr. Cheng Xinhua, Founder, President and Chief Executive Officer of Eastern Crown Hotels Group said, “We are delighted to work with Marriott on the development of Fairfield and in the mid-tier hotel segment in China. Combining our knowledge of the Chinese consumer and Marriott’s quality and expertise in the marketplace, I am confident that Fairfield by Marriott is poised to develop at an exceptional pace. We see today’s signings as the official launch of a fruitful collaboration between the two organizations, all with the aim of building the best experiences for Chinese consumers in mind. “
