Marriott International has been working hard to ramp up the development of its AC Hotels by Marriott brand in the Americas and around the world since its launch 11 months ago. It currently has 22 deals approved in top U.S. markets (two adaptive reuse, four conversions and the rest new-builds), and another seven approved elsewhere, including two in Rio de Janeiro, two in Mexico and one in Panama, as well as Paris and Istanbul. Another 20 to 30 sites are in discussion, according to Callette Nielsen, global brand development vice president for the brand, with the first U.S. hotel set to open in New Orleans this September.
To further build momentum for development, on April 10 at its corporate headquarters Marriott hosted some 50 owners in its innovation lab to present for the first time its B&F concept (as opposed to F&B) for morning and evening.
“The feedback from the event was great,” Nielsen said. ”It is very differentiated for its space, and the European flair was very well received. It was also a big foodie crowd, and they said we are very on trend with our offerings for the next generation of consumers.” For example, for the paid breakfast offering, a signature prosciutto sliced on a Berkel slicer reflects the brand’s European influence.
In fact, perhaps the biggest adaptation to the concept founded in 1998 by Antonio Catalán, the leading owner of city hotels in Spain, is the food and beverage offering, which Nielsen says can operate efficiently with a staff of two in the morning and the evening.
The U.S. AC concept is being positioned a stylish, upper-moderate-tier lifestyle brand for “urban spirits” for about US$150,000 per key without land, according to Nielsen, with some variances based on location. The other big variance will come in public spaces, as all rooms will be created from the prototype with no customer packages.
AC by Marriott also is tech-enabled and has a lounge that features craft beers, signature cocktails and specialty wines as well as a menu with shareable plates, bar bites and snacks in a space that includes a multimedia area with sofas and flat-panel TVs. Public spaces include locally inspired, museum-quality modern artifacts, progressive music, a library with low communal tables and curated reading materialsas well as a marketplace for grab-and-go items.
Bobby Finvarb of Robert Finvarb Companies, Miami, is developing the first ground-up AC Hotel in Miami Beach that will open across the street from an Edition hotel in the first quarter of next year. He told HOTELS costs to develop the property sit between an urban select and a full-service hotel. “A lot of that has to do with upgrading of interiors,” Finvarb said. “I am designing to boutique standards, and there are a lot of unique elements in the common areas.”
Finvarb, who said he wants to develop more AC hotels, went on to say that his AC in Miami Beach has more of a full-service development price and will realize a full-service P&L statement — only without the costs associated with a full-service P&L. “I am going to be able to drive the rate, drafting off the top boutique hotels in the market,” he said.
Finvarb also said the beauty of the brand from a developer’s perspective is that Marriott is giving him a huge amount of design latitude to get creative and make the hotel a reflection of Miami Beach. “When I was introduced to AC I thought it was a natural for Miami Beach,” he said. “It is very sophisticated and cosmopolitan, and it speaks to the core traveler visiting Miami Beach. As soon as the brand was announced, within weeks we were finalizing our deal to develop the property.”
Finvarb points to AC’s roots in Spain and its Latin flavor as another benefit. “The fastest-growing population in the U.S. is Hispanic, and so many products are being developed to cater to this community,” he said. “Just look in the fashion industry and how Zara is crushing Gap and J Crew. When Marriott acquired this brand I analogized it to Zara. It is sophisticated, stylish and affordable — it has everything Zara has to take over country with fashion.”