Q2 REVIEW
Marriott completed the $ 100-million acquisition of City Express in May 2023 .
PROVEN MARKETS , PROVEN BRANDS AND PROVEN OWNERS ALWAYS WIN OUT
– LEENY OBERG , CFO AND EVP OF DEVELOPMENT , MARRIOTT INTERNATIONAL free-flowing debt like we saw a few quarters ago .”
A new survey from the Federal Reserve showed that lending conditions at U . S . banks are tight and likely to get even tighter and that in the $ 2.76-trillion commercial and industrial lending segment , a large share of banks said they have put more limitations on lending standards and have also seen lower demand for loans .
“ Proven markets , proven brands and proven owners always win out ,” Oberg said , adding that the higher loan-to-values required is making it harder for new projects to pencil out .
For a company the scale of Marriott , multiunit conversions are attractive and expectations are , as Oberg pointed out , that the company will continue to chase these types of deals , which , in turn , gives Marriott the confidence that its net unit growth will be in the high single digits for quarters to come .
20 hotelsmag . com September 2023