Marriott International says it is speaking to distressed independent properties to launch its Autograph collection as its first foray in the South African market.
Ed Fuller, President and MD of international lodging for Marriott International, told Tourism Update Online that the company’s strength is its access to global markets. While he recognised that the local hospitality sector was under strain, this was a “good time” to be investing in the country.
“We can work with independent brands in the local market to capture Marriott’s global reach. South Africa is going through nothing different to any other market that has hosted a major event, but whether you’re sitting in Beijing or Barcelona there are opportunities to bring in new business and we can help hotels to do that.”
According to Fuller, the Autograph portfolio is a collection of independent properties that have chosen to work with Marriott for its systems, technology and global reach. “These hotels do not rebrand or change their identity in any other way. Rather they just use the strength of our distribution channel and have access to our corporate customers and Marriott Rewards members.”
Jean Marc Grosfort, Chief Development Officer for the Middle East and Africa at Marriott International, said previous attempts to enter the SA market had fallen flat because the company’s business model of leasing had not fit with that required by financial institutions in this market.
“Our strategy was always to go into the key areas of Johannesburg, Cape Town and Durban, but three previous deals fell through when the owners of properties we were working with failed to get finance because the agreement would have been on a lease basis.”
The Autograph brand was launched 18 months ago with 25 properties already falling under this brand across Europe and the US. While initially this will be the group’s strategy for entering the market, Grosfort has not ruled out Marriott pursuing its own builds in the long term.
“For the short-term we’re looking at conversions to the Autograph portfolio, but it can take up to five years between the start of negotiations and the opening of a hotel, so by the time we’re ready to open Marriott branded properties, the market will have bounced back.”
The hotel giant has also made significant investments in China and Africa, indicating that its brands are already well known in the former so that when Chinese travellers start travelling en masse they will recognise and thus select Marriott properties around the world. “We’ll get attention from the Asian markets,” said Fuller.
