Marriott is jumping on the extended stay bandwagon with another extended stay brand announcing a new entry into “[t]he affordable midscale extended stay” segment that will “deliver reasonably priced modern comfort for guests seeking longer stay accommodations in the U.S. & Canada.”
The new brand is not yet named but internal project names are often revealing, and this one is “currently being referred to as Project MidX Studios.”
They literally tell you the new chain is mid.
Marriott already has extended stay properties:
- Residence Inn
- Marriott Apartments
- Apartments by Marriott
So what they need of course is another extended stay brand, with little known detail other than it’s ‘mid’ and “from the physical product to the operating model” cheaper than its current products.
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.
For the “budget conscious consumer” they’re aiming to deliver room rates “around $80 per night, depending on the market and demand.”
A couple of weeks ago Hilton got ahead of itself announcing plans for a new, downmarket extended stay brand that didn’t yet even have a name or properties in the pipeline. The key selling proposition was that owners wouldn’t have to allocate much space to lobbies.
Marriott hasn’t announced any properties in the pipeline for this brand, either, but at least they’re honest in marketing the concept as mid.