News for the Hospitality Executive
SAO PAULO and BETHESDA, Md., Nov. 17, 2010 -- Marriott International, Inc. (NYSE: MAR) today reached an important milestone in the creation of a platform for multi-unit hotel growth in Brazil with the announcement of a preferred partnership with PDG Realty (PDGR3.SA) for the development of 50 Fairfield by Marriott hotels throughout Brazil.
The hotels in this partnership will be constructed with environmentally friendly design for greater energy efficiency. Additionally, Marriott and PDG Realty have agreed to make financial contributions for each hotel constructed to support Amazon rain forest preservation through the Amazonas Sustainable Foundation (FAS).
"We are excited to partner with PDG Realty. In addition to their substantial land bank and access to quality sites, they bring together local hotel development and construction expertise, particularly in the limited-service hotel segment," said Arne Sorenson, president and chief operating officer of Marriott International. "Introducing the Fairfield brand in Brazil couples our focus on expanding into new markets with a wider range of development opportunities for hotel investors, as well as our goal of building environmentally friendly hotels meeting the needs of Brazilian guests."
The companies have identified the potential to develop 50 Fairfield hotels in Brazil. Each new hotel will be built with a focus on saving energy and minimizing its impact on the environment. Fairfield is Marriott's leading brand in the moderately priced lodging segment and the eighth brand in the company's lodging portfolio to be developed outside the U.S.
In addition to hosting two major sports events over the next six years, Brazil represents the Americas' largest growth market, fueled by the rising domestic traveler. This transaction reflects Marriott's continued commitment to sustainable global growth with a local focus.
PDG Realty merged with Agre (AGEI3.SA) in May of this year, resulting in a combined publicly traded company with a market value of approximately R$ 12 billion Reals ($USD 7B), and now the largest real estate development company in Brazil. PDG's headquarters is located in Rio de Janeiro and Agre's is in Sao Paulo and, combined, they have the broadest national footprint with 2,000 employees in 18 offices throughout Brazil. Their land banks have a potential to generate a total sales of R$ 31 billion in real estate value.
Agre's Director responsible for the partnership, Ricardo Setton, said, "Marriott International is known around the world for its commitment to quality and service. It is clear that our country is increasingly lacking consistent hotel product and service delivery in the numerous growing business cities. We are excited to work with the leading US hotel company to develop this select-service hotel brand focused on the growing Brazilian traveler."
With the addition of these new Fairfield hotels, Marriott's global portfolio will range from luxury to moderate segment. Already, the company's worldwide pipeline of hotels under construction, awaiting conversion or approved for development totals nearly 95,000 rooms.
"We are thrilled to collaborate with an esteemed local partner such as PDG and Agre to introduce our Fairfield by Marriott brand in Brazil," said Guilherme Cesari, Marriott's vice president of development for Brazil. "This transaction reflects Marriott's commitment to Brazil and focus on the unmet needs of the Brazilian traveler, and provides for an efficient development platform for growth."
Today, Marriott International, Inc. is represented in Brazil by four hotels in two cities, spanning four lodging brands: the JW Marriott Hotel Rio de Janeiro, Sao Paulo Airport Marriott Hotel, Renaissance Hotel Sao Paulo and the Marriott Executive Apartments Sao Paulo.
Note: Statements about the locations and number of new hotels to be opened and their anticipated completion and opening dates are "forward looking statements" within the meaning of federal securities laws, and are subject to a number of risks and uncertainties, including those described in Marriott International, Inc.'s filings with the U.S. Securities and Exchange Commission, which could cause the actual number of new hotels or their completion or opening dates to be different than expected.
Launched in 1987, Fairfield Inn & Suites has become a leader in the moderate tier category. With more than 625 properties throughout the United States, Canada and Mexico, guests can rely on Fairfield Inn & Suites to meet their lodging needs wherever their travels take them. Fairfield Inn & Suites participates in the company's award-winning Marriott Rewards® frequent guest program. Members earn their choice of points toward free vacations or frequent flyer mileage for dollars spent at nearly 3,000 Marriott hotels worldwide. For more information or reservations, call, call the Fairfield Inn & Suites toll-free number at 800-228-2800 or visit the web site at www.fairfieldinn.com.
MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading lodging company with more than 3,500 lodging properties in 70 countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, The Autograph Collection, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club, The Ritz-Carlton Destination Club, and Grand Residences by Marriott brands; licenses and manages whole-ownership residential brands, including The Ritz-Carlton Residences, JW Marriott Residences and Marriott Residences; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Bethesda, Maryland, USA, and had approximately 137,000 employees at 2009 year-end. It is recognized by FORTUNE® as one of the best companies to work for, and by Newsweek as one of the greenest big companies in America. In fiscal year 2009, Marriott International reported sales from continuing operations of nearly $11 billion. For more information or reservations, please visit our web site at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.