Marriott International appears to be consolidating its hold on the convention-hotel market segment with its acquisition of Gaylord Entertainment’s hotel brand and management. With its latest move, Marriott now controls 17 of the 100 largest U.S. convention hotels. While convention hotels are a relatively small niche making up about 2% of the entire US hotel market, they account for some 12% of all hotel beds.
The Gaylord brand has had a proven track record of success in the meetings and family leisure markets and their single inclusive concept fits the Marriott portfolio,
The brand also represents a product group that both achieves higher room rates than the overall market and has better growth potential, according to an industry analyst.
Bjorn Hanson, of New York University’s school of tourism and hospitality management, said the Gaylord acquisition in the convention-hotel segment was more about continuing Marriott’s strategy of providing a guest an additional price point and service proposition. Mr Hanson said that the addition to their portfolio was especially good timing for Marriott as it could retain more conventions by allowing some events to change from maybe a more expensive hotel within the Marriott stable to that now includes the more cost competitive Gaylord brand.