Marriott is one of the world’s largest hospitality brands with more than 9,000 hotels across 30 brands in 142 countries and territories. It represents nearly 1.1 million guest rooms. Among its brands are extended stay, business-focused and luxury properties, but Marriott is intent on filling geographic gaps where its luxury portfolio could perform well.
Latin America has been high on the list for Marriott, and this attention to grow in the region is not by chance. Recent data from Booking.com shows that online searches from U.S.-based travelers interested in South America are up significantly within the past year. Among them, Peru and Uruguay have skyrocketed with searches to the former up 2,650%, and Colonia del Sacramento in Uruguay, for example, up 412%.
Brazil, Colombia, Argentina and Chile also saw significant increases within the past year. Among the biggest jumps were Puerto Natales, Chile with 163% growth, San Carlos de Bariloche, Argentina up 24% and Medellin, Colombia, up by 21%. Major cities like Bogota, Lima, Buenos Aires and Rio de Janeiro all saw notable increases in searches among U.S. travelers.
Hospitality expert Charanjit Singha of WB Hotels & Resorts notes that as economies in the region stabilize and develop, they are becoming ripe targets for hospitality growth and expansion, especially as tourism grows from both domestic and international vantage points (something that has been fueled by the increase in low-cost airlines in the region allowing for easier travel). He also notes that major cities in the region are becoming key business hubs that require hotels of a higher caliber.
Following acquisitions like City Express, which focuses on the mid-scale market and instantly grew the Marriott’s presence in the region by 45% and more than 150 hotels overnight, the brand is looking to round out its portfolio in Latin and South America at the top end, too. Marriott Luxury Group has properties in Aruba, Brazil, Argentina, Chile, Colombia, Ecuador, Paraguay, Peru and Uruguay.
Late last year, Marriott Luxury Group opened Almare, a Luxury Collection Adult All-Inclusive Resort in Mexico, which was also its 500th hotel in Latin America. Other Caribbean openings planned for this year include The St. Regis Aruba Resort, Paraíso de la Bonita, a Luxury Collection Resort, Riviera Maya, Salterra, a Luxury Collection Resort and Spa in Turks & Caicos, The St. Regis Cap Cana Resort, W Punta Cana and Colony Club, Luxury Collection, Barbados.
Referred to as CALA internally, which stands for Caribbean and Latin America, the region is especially important for Marriott’s luxury portfolio. The region represents 10% of its luxury properties globally, representing 11,707 rooms across 64 hotels in 17 countries. Another 35 hotels are in the pipeline, effectively growing its presence in the region by more than 50%.
Still, Singha calls these markets “under-penetrated” with untapped potential, especially in secondary cities where hospitality investment is still new.
Costa Rica is another outperforming market for Marriott where it has the highest concentration of hotels after Mexico, according to HOTELS magazine. The newest opening: Nekajui, a Ritz-Carlton Reserve, the first Ritz-Carlton in Central America.
Marriott’s luxury brands include St. Regis, JW Marriott, Ritz-Carlton and The Luxury Collection among others. A particular focus in the past year has been on Brazil, a key market for Marriott International. Currently, it has 14 hotels representing 3,592 rooms across nine different brands. But, considering the size of the largest South American country, that’s just a drop in the bucket.
Singha points out that Brazil is a diverse market in the region with the most potential overall.
Brazil represents the second biggest market (after Mexico) in the number of Marriott Bonvoy members, which to date is more than 1.3 million people. And Booking.com data for the past 12 months shows an uptick in searches to Rio de Janeiro by 43% and Sao Paulo by 22%.
Brazil’s Ministry of Tourism, Embratur and the Federal Police released data from 2024 showing a record-breaking year showing 6,657,377 foreign tourists visiting last year, representing a 12.6% increase from the previous year. Argentina and the United States represent the biggest sources of incoming visitors.
To tap into growing demand, but also support Marriott Bonvoy’s success in the country, Marriott has been on a development spree to grow its luxury brands in Brazil specifically. In late 2024, W Sao Paulo and W Residences Sao Paulo opened as the first W in the country.
Currently, there are six hotels in the development pipeline representing over 1,937 rooms. Among its residence projects, another growing sector in hospitality to build real estate projects associated with luxury hotel brands, are ten new properties that will feature residences for sale.
The focus on Brazil also includes hotels that do not fall within its luxury category with new openings like The Westin Sao Paulo and Tropical Hotel da Amazônia, a Tribute Portfolio Hotel, both in the pipeline to open later this year and both the first properties for their respective brands in the country. JW Marriott recently opened in Sao Paulo in the city’s bustling business district.
These are on top of many hotels in the country that perform significantly well for the brand like the Sheraton Grand Rio Hotel and Resort (the only beachfront hotel in town) that has its own private beach and the Renaissance Sao Paulo in the heart of the city and known for its food and beverage that draws in locals for business lunches (especially its popular weekly feijoada buffet spreads).
Helping growth is the number of conversions that help Marriott to grow more quickly. According to Jose Gonzalez, vice president for development, Marriott International in the Caribbean and Latin America, they offer a unique value proposition for owners and franchisees and deliver momentum for its robust portfolio of soft brands and conversion-friendly brands in the region.
Conversions represented 32% of total room signings in the Caribbean and Latin America last year. They include Marriott brands like Autograph Collection Hotels, The Luxury Collection and Tribute Portfolio. These represent 30% of conversion rooms for Marriott International signed globally.
Gonzalez cites Nicaragua as a perfect example, which has seen numerous hotel projects in the pipeline this year thanks to the expansion of City Express by Marriott.
“Collaborating with local partners can provide valuable insights into the market, help navigate regulatory challenges, and facilitate access to resources and networks,” says Singha.
All-inclusive resorts are also a key growth target for hospitality companies these days, especially Marriott. It goes beyond large-scale resorts to also include all-inclusive properties within its luxury brand. The second, all-inclusive Ritz-Carlton will open in Yanuna, Dominican Republic next year.
While many travelers may associate these types of resorts with the Caribbean and Mexico, Marriott is taking things further to include Brazil and Costa Rica. These include The Westin Porto de Galinhas, an All-Inclusive Resort, in northern Brazil; Planet Hollywood Costa Rica, An Autograph Collection All-Inclusive Resort; and The Westin Reserva Conchal, an All-Inclusive Golf Resort & Spa.
Marriott Bonvoy fuels this focus further by appealing to its enormous membership with properties that focus on luxury. For Marriott, Latin America is top of mind to meet the burgeoning commercial and leisure interest in the Caribbean, Central and South America.