Marriott leans on hotel conversions as new builds stall in Europe

Credit squeeze pushes growth through soft brands and localized standards

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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