To further extend its booking options and grow loyalty, Marriott International on Monday provided details about plans to enter the homesharing market with a six-month pilot in London in conjunction with London-based home rental management company, Hostmaker.
Using its Tribute soft brand, Marriott is testing Tribute Portfolio Homes to brand and market over 200 homes in the Hostmaker system. The homes have been vetted to adhere to Marriott’s fire, safety, and design standards; uniquely offer 24-hour, in-person check-in; truly differentiate because consumers are able to immediately earn reward points for their stays; and will comply with relevant short-term rental laws in London, including nightly limits and collection of applicable taxes. Marriott also expects to allow guests to use reward points to make bookings.
R.W. Baird analyst Michael Bellisario said in a note that it will be interesting to see how Marriott-branded hotels in London perform during this pilot program with 200 Marriott-branded assets being added to local supply. “We believe the relative performance of existing Marriott- and Starwood-branded hotels in London during the pilot period must be maintained in order for Marriott to further expand the homesharing program into other markets without causing existing hotels owners to meaningfully push back on Marriott’s expansion plans,” Bellisario said.
Marriott has not officially announced this news, but on Monday it released to HOTELS details and rationale about the program. It said it made the announcement believing the short-term rental industry faces two fundamental issues: products with little quality or brand assurance and a lack of truly professional property management that ensures rentals have been vetted to meet specific standards and comply with local laws.
Hostmaker was one of the finalists selected as part of a Travel Experience Incubator program launched by Marriott International together with Accenture and 1776, a leading global incubator and network for start-ups, in 2017.
For this pilot, Marriott worked closely with Hostmaker to identify homes based on their overall design, functionality and location. While Hostmaker is typically responsible for overseeing the safety and security of the properties, as part of its partnership with Marriott International, Hostmaker has further enhanced its compliance standards for properties to be included as Tribute Portfolio Homes. The result is a portfolio of homes that aligns with the aesthetic and service values of the Tribute Portfolio brand.
Guests can book one of these homes in London directly on TributePortfolioHomes.com or link from Marriott.com or Starwoodhotels.com. Loyalty club members will earn points for their stay and in May (next month) they will also be able to redeem points to stay at one of these beautiful properties. Guest will receive immediate confirmation of a reservation.
Marriott said its offering will differ from its hotel offerings in a few ways:
- The product is different – homes are entire homes with 1-plus bedrooms, full kitchen, and in-unit laundry;
- Consumers pay for their home at time of booking;
- The cancelation policies are more stringent than hotels, but comparable to other home share offerings: 100% refund: if cancelled both within 48 hours after booking and 30 days prior to check-in date; 50% refund: if cancelled 7 or more days prior to check-in date; 0% refund – if cancelled less than 7 days in advance of check-in date.
- Housekeeping is provided before arrival; interim cleaning is at additional charge (rate varies by size of home).