EDITOR ’ S DIARY
Two worlds
COLLIDE
Marriott International found room for another brand in late April , and the move speaks volumes about the evolving face of hospitality . After testing homesharing last year in a handful of major European markets , the results must have ticked enough boxes to go all in and launch Homes & Villas by Marriott International .
While Marriott made it very clear that its model is different than the vaunted Airbnb in that it will live up to its tax obligations and operate with property management company partnerships , the
Editor In Chief move also legitimizes the likes of Airbnb — not that the segment really needed it . By the end of the first quarter of 2019 , Airbnb has projected that it will surpass 500 million guest arrivals since it launched in 2008 . For the third quarter of 2018 , it generated more than US $ 1 billion in revenue .
Marriott will bring its loyalty program , operations experience and a more niched approach at the higher end of the home rental segment , while at the same time create new appeal for next-gen travelers . It will also rely on a network of management companies expected to bring an added level of professionalism thus far lacking at Airbnb .
Home-sharing companies are significant competitors and perhaps Marriott and other hotel companies are realizing it is time to embrace the concept and do it better than the disruptors . Choice Hotels has been in the space with its vacation rental business separate from any timeshare business . Indian Hotels Co . Ltd . just launched its Ama Trails & Stays homestay brand for India with heritage bungalows , guesthouses and homestays at unique locations across the country , and other hybrids like Room Mates ’ BeMate . com connects home-sharing businesses to the amenities offered by hotels . I expect to read about many more similar announcements on large and small scales .
For the moment , Hilton says it is steering clear of home-sharing , but CEO Chris Nassetta didn ’ t rule out playing in the space in future . Maybe he is reacting to the slow starts in the space from the likes of Accor and Hyatt , whose brands have not found the black . In fact , Hyatt has pulled out of the space for the time being .
Interestingly , and almost ironically enough , Airbnb is moving more aggressively into more traditional lodging spaces with its acquisition of hotel discounter HotelTonight and investment into India-based hybrid Oyo Hotels & Homes . Most recently , Airbnb partnered with a real estate developer to create suites on 10 floors at New York ’ s Rockefeller Plaza and list them on its platform .
It shows you that the expanding nature of the travel universe is creating more opportunities for anyone willing to take the risk , but profitability does not always come so easily or quickly . It also shows you that hotel industry giants are tired of losing business to the likes of Airbnb . Now that it is playing in the space , it will be interesting to see how else Marriott differentiates its offer and how Airbnb responds to its new competitor .
PASSION FOR HOSPITALITY
EDITORIAL Jeff Weinstein , Editor In Chief 1.312.274.2226 E-mail : jweinstein @ hotelsmag . com Barbara Bohn , Managing Editor 1.312.274.2209 E-mail : bbohn @ hotelsmag . com Chloe Riley , Associate Editor 1.312.274.2229 E-mail : criley @ hotelsmag . com Bert Ganzon , Senior Art Director 1.312.274.2227 E-mail : bganzon @ mtgmediagroup . com Steve Vanden Heuvel , Senior Art Director 1.312.274.2218 E-mail : svandenheuvel @ mtgmediagroup . com Brittney Hackbart , Associate Art Director 1.312.274.2216 E-mail : bhackbart @ mtgmediagroup . com Michelle Villadolid , Freelance Design E-mail : mvilladolid @ mtgmediagroup . com Bill McDowell , Vice President , Editorial Director 1.312.274.2201 bmcdowell @ mtgmediagroup . com
CONTRIBUTING EDITORS Judith Crown , Megan Rowe , Juliana Shallcross , Erin Sund
PUBLISHING David Wood , Publisher 1.312.274.2225 dwood @ hotelsmag . com Bill Kinross , Vice President , Group Publisher 312 / 274-2214 bkinross @ meatingplace . com
INTERNATIONAL ADVISORY BOARD Nakul Anand Executive Director , ITC Ltd ., Gurgaon , India Stephen Bartolin President , Broadmoor Sea Island Co ., Colorado Springs , Colorado Alex Kyriakidis President and Managing Director , Middle East and Africa , Marriott International , Dubai Christopher Nassetta President and CEO , Hilton Worldwide , McLean , Virginia Monika Nerger Chief Information Officer , Mandarin Oriental Hotel Group , Atlanta Paul Sistare President and CEO , Atlantica Hotels International , São Paulo Susan Terry Vice president of culinary and food and beverage operations , Marcus Hotels & Resorts , Milwaukee , Wisconsin
EDITORIAL AND PRODUCTION OFFICES , HOTELS Marketing and Technology Group 1415 N . Dayton Street Chicago , Illinois 60642 USA 1.312.274.2200 ; edit @ hotelsmag . com
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6 hotelsmag . com June 2019