Marriott to open New Resorts, Mid-Priced Courtyard Hotels and an Extended-Stay Hotel in Next Two Years in the Middle East

Marriott International continues its growth in the Middle East with new resorts, mid-priced Courtyard hotels and a new extended-stay hotel scheduled to open over the next 30 months.

William J. Shaw, president and chief operating officer of Marriott International, said, "Despite the uncertain political and economic environment, we are pleased by the performance of our existing hotels in the region which benefited this summer by strong intra-regional travel demand. As we look to the future, we continue to take the long-view. In the 23 years in which we have operated in the region, we have learned that the Middle East is a resilient market.

"As a result, we are introducing our mid-priced Courtyard by Marriott brand in Kuwait City and in Dubai next year. We are also confident that we can replicate here in Bahrain the success we have had in Dubai with our Marriott Executive Apartments brand for extended stay travelers. We expect to open a deluxe 95-unit Marriott Executive Apartments product in the Juffair District of Manama in 2006 in conjunction with International Trading and Investment Co. And, we have a new resort planned for Aqaba that is expected to open in 2005.

He said that Marriott also has expanded its JW Marriott brand portfolio in the region with the opening earlier this year of the 283-room JW Marriott Hotel Kuwait City and the 428-room JW Marriott Hotel Cairo and Golf Club.

"We are very excited about the growth of this brand," he said. "With three JW properties in the Middle East, we are confident that we are well positioned to meet the needs of an emerging group of consumers who seek understated elegance; warm, gracious service and a more relaxed luxury experience."

With the growth of its brand portfolio, Mr. Shaw said Marriott can now offer Middle East travelers a number of hotel brands, depending on their trip purpose, budget and the kind of travel experience they want.

"One size no longer fits everyone. So, in the luxury tier, travelers can now select from our JW Marriott and Ritz-Carlton brands. Those seeking upscale, deluxe lodging have a choice of our Marriott and Renaissance brands. Our Ramada International brand offers a range of services, depending on the specific hotel. Soon, travelers who are looking for consistently great accommodations at moderate prices will have Courtyard by Marriott. Finally, those, who plan to stay at a destination for 30 days or more, have Marriott Executive Apartments."

Today, the Marriott International lodging portfolio in the Middle East consists of 18 hotels in 11 countries and offering 5,828 rooms.

He said Marriott has a current global pipeline of new rooms that exceeds 50,000 units, now awaiting conversion, or approved for development. "With our partners, we will open 25,000 to 30,000 new rooms a year through the end of 2004."

Mr. Shaw said that in the second quarter of 2003, more than half of the company's new rooms were conversions of existing hotels to one of Marriott's brands. "During challenging times like these, hotel owners and franchisees select the strongest brands. We are gratified that they view our brands so favorably."

Marriott Rewards Program Grows in Regional Popularity

Turning to Marriott Rewards, Marriott's award-winning frequent guest loyalty program, Mr. Shaw said Middle East membership grew 16 percent over the past year.

"This growth can be directly attributed to the expansion of our portfolio in the region," Mr. Shaw said. "As the portfolio grows, members have more opportunity to earn and redeem points, making the program more relevant to them.

"Last year, Middle East members spent five percent more nights at our hotels than they did in 2001 and devoted about a third of their stays to our hotels in the region," he said, noting that members tended to both earn and redeem their points in the region. "Other popular destinations included Moscow, Paris, London and Munich."

Marriott Rewards is now in its 20th year and boasts nearly 20 million members worldwide.

'Cautiously Optimistic' for Winter Travel Season

Looking to the future, Mr. Shaw said Marriott was "cautiously optimistic" about the winter travel season in the region. "A lot of different factors are at work. The Egyptian currency has made Egypt a better travel value. In Kuwait, an aggressive program to improve the tourism infrastructure in underway. Recent discovery of massive gas reserves is spurring travel to Qatar and the UAE continues to attract new business."