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Pigs Are Flying!
June 14, 2007

OMG! OMG! If you didn’t know, OMG is text messaging parlance for “Oh my God!” Bill Marriott in business with Ian Schrager. If you had asked me five years ago about the potential for this relationship to blossom, I would have told you something like, “When pigs fly.” Outwardly, you couldn’t find two more opposite hotel archetypes. Schrager is the Earl of Cool, while Marriott has been the poster boy for chain-like, standardized hotelkeeping. Looking inward, perhaps Ian Schrager has been looking for this type of partner forever and a day so he can sell his boutique point-of-view to the world. And maybe Bill Marriott has a black suite with matching black shirt and tie in his afterwork wardrobe. Afterall, Bill does blog.

If you haven’t heard, on June 14, Marriott International and boutique hotelier Ian Schrager launched a partnership to a new brand of as many as 100 hotels that will combine the personal, intimate, individualized and unique lodging experience that Mr. Schrager created with Marriott’s operational expertise on a global scale.

The partners will divide responsibilities for rolling out the brand, with Schrager leading the effort on concept, design, marketing, branding and food and beverage. Marriott will oversee the development process, and operate and manage the completed hotels. In particular, Marriott will use its relationships in the development community to identify appropriate potential development partners and owners in various markets. The partners expect to have at least five firm development deals signed under the new brand by the end of 2007 and 100 hotels open or in the pipeline within a decade.

This is Marriott’s long-anticipated answer to Starwood’s W brand. Marriott recognizes they are not getting the lifestyle guests and know these concepts have great ROI, when properly executed.

When you step back and think about it, this is a match made in heaven. But is Marriott too late to the party. Barry Sternlicht just broke ground on his first “1” hotel in Seattle and has a site in New York City. W is going strong and several of the niche players like Kimpton, Joie de Vivre, Stein and even Rezidor have already created loyal followings. And does Ian Schrager bring the same loyal following with him anymore? Time will tell.

Posted by Jeff Weinstein on June 14, 2007 | Comments (0)