Marriott Signs With PB Puerto Bahia Residence for Conversion of Grand Matlali Hills Resort & Spa
Marriott International, Inc. (NASDAQ: MAR) announced it has signed an agreement to manage the first all-inclusive Delta Hotels by Marriott resort in the world, signaling that interest by investors for the all-inclusive platform launched by the company in August 2019 continues to be strong. Under the agreement, the current 117-room Grand Matlali Hills Resort & Spa resort, located in Riviera Nayarit (Mexico), is slated to undergo a significant transformation in order to meet the new all-inclusive brand extension concept of Delta Hotels by Marriott and is anticipated to be subsequently rebranded and managed by Marriott International in 2021. The resort is expected to be expanded to 300 rooms by 2023.
"We are excited to work with PB Puerto Bahia Residence, S.A. de C.V. to convert this property into the first all-inclusive Delta Hotels by Marriott hotel globally and bring the Delta Hotels by Marriott all-inclusive concept to our region," said Laurent de Kousemaeker, Chief Development Officer, Caribbean and Latin America for Marriott International. "The long-awaited Delta Hotels by Marriott all-inclusive brand extension standards are now ready, and perfectly suited for conversions of full-service resorts, allowing our 142 million Marriott Bonvoy guests soon to experience this new concept."
Located on a hillside in La Cruz de Huanacaxtle in popular Riviera Nayarit, the 117-room property is set to provide an exciting, new lodging option to visitors and locals once it is converted to the Delta Hotels by Marriott brand. Just 30 minutes from Puerto Vallarta airport, it will feature six food and beverage outlets, a spa, a fitness room, and a beach club, embodying the Delta Hotels by Marriott brand's approach to the all-inclusive experience.
"We are excited to sign a Delta Hotels by Marriott all-inclusive resort and work with Marriott International to manage the property," said Armando Vejar, CEO of PB Puerto Bahia Residence, S.A. de C.V. "By bringing this new concept and brand to Riviera Nayarit we hope to elevate the offering for visitors and attract a new segment of guests to the destination."
Since 2014 the company has signed over 10,000 conversion rooms to Marriott brands, including Delta Hotels by Marriott Mexico City, signed in December 2019, and Elegant Hotels in Barbados, which the company acquired late last year.
Conversions, which have long been a part of the Marriott growth story, continue to be appealing to the owner and franchisee community. The company has a strong portfolio of conversion-friendly brands such as Autograph Collection, The Luxury Collection and Delta Hotels by Marriott, which offers a flexible full-service conversion platform.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" within the meaning of U.S. federal securities laws, including expected hotel openings, the introduction of certain all-inclusive brand extensions, interest levels and demand trends for conversions and certain brands and product types, and similar statements concerning possible future events or expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those we identify below and other risk factors that we identify in our U.S. Securities and Exchange Commission filings, including our most recent Quarterly Report on Form 10-Q. Risks that could affect forward-looking statements in this press release include the duration and scope of the coronavirus and efforts to contain it ("COVID-19"), including whether and to what extent a resurgence of the virus could occur after the pandemic initially subsides; its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals have taken or may take in response to the pandemic, including limiting or banning travel and/or in-person gatherings or imposing occupancy or other restrictions on lodging or other facilities; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates and consumer discretionary spending; the ability of our owners and franchisees to successfully navigate the impacts of COVID-19; the pace of recovery when the pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps we and our property owners and franchisees take to reduce operating costs and/or enhance certain health and cleanliness protocols at our hotels; the impacts of our employee furloughs and reduced work week schedules, our voluntary transition program and our anticipated above-property position eliminations later in 2020; competitive conditions in the lodging industry; relationships with clients and property owners; and the availability of capital to finance hotel growth and refurbishment. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of the date of this press release, and undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.