Credit squeeze pushes growth through soft brands and localized standards
Oct 1, 2025
Marriott International is ramping up hotel conversions across Europe as debt-driven new construction proves harder to finance. By expanding conversion-friendly brands, localizing standards, and balancing growth between midscale and luxury, the company is reshaping its development playbook for the region.
Key takeaways
- Shift from new builds to conversions: Rising costs and tighter credit make traditional construction less viable, pushing Marriott toward conversions as a core growth strategy.
- Conversion-friendly brands: Four Points Flex by Sheraton, launched in 2023, is a centerpiece of Marriott’s midscale expansion, with 50 European hotels planned or converted by 2026.
- Soft brand momentum: Autograph Collection, Tribute Portfolio, Luxury Collection, and other soft brands are gaining traction outside the U.S., offering independent hotels faster onboarding and access to Marriott’s booking channels.
- Luxury growth continues: Despite the midscale pivot, high-end hotels remain 10% of Marriott’s pipeline, with new St. Regis and W properties slated for London and Manchester.
- Acquisition strategy: The purchase of CitizenM adds a compact, tech-forward brand that complements Moxy while broadening Marriott’s reach in primary and secondary markets.
- Localized approach: Marriott is moving away from uniform global standards, tailoring brand execution to local markets and owner expectations to boost adoption in Europe and beyond.
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