Marriott to Expand Presence in Affordable Midscale Segment in Canada and USA

Dark/Light Mode (28/06/23)  Marriott recently unveiled plans to further expand in the affordable midscale lodging segment, following its recent entry into the segment with City Express by Marriott in Latin America.

To achieve this, Marriott has confirmed that it will launch a new brand, which has not yet been named, but is currently being referred to as Project MidX Studios.

The brand is intended to deliver reasonably priced rooms for guests seeking longer stay accommodation in the U.S.A. and Canada.

Rendering of what a MidX Studio may look like

“Marriott has long believed in having the right accommodations in compelling destinations at the right price point. Whether our guests are traveling for business, leisure or a mix of both, our portfolio of 31 brands offers something for everyone,” said Anthony Capuano, Marriott International President and CEO. “As consumers look for new, flexible accommodation solutions, we are thrilled to announce our plans to launch an affordable midscale extended stay offering to meet the needs of guests seeking long-term comforts at a moderate price point.”

The company already has several extended stay lodging brands such as Residence Inn by Marriott, Element by Westin, TownePlace Suites by Marriott, Marriott Executive Apartments and more recently, Apartments by Marriott Bonvoy.

“Based on everything we’ve seen and heard, our team is excited about Marriott’s entry into the affordable midscale segment, where Concord has been engaged for many years,” said Mark Laport, President and Chief Executive Officer, Concord Hospitality. “In collaboration with Whitman Peterson, we expect to break ground on three Project MidX Studios this year, with anticipated openings in late 2024 or early 2025. Marriott’s track record in extended stay and strong owner value proposition are compelling and driving our interest in growing this brand within our portfolio.”

Project MidX Studios, expected to be Marriott’s most affordable cost-per-room product in the U.S.A. and Canada, is designed to enable accelerated speed-to-market with a low cost to build.

The prototype model targets a build cost of $13 million to $14 million, requiring approximately 54,000 square feet of total building area for 124 studios.

The brand is also expected to have a light operational cost model for owners and franchisees.

“With Project MidX Studios, we are focused on enhancing the breadth of our portfolio through the creation of a product specially designed for the affordable midscale extended stay tier—from the physical product to the operating model. The team created Project MidX Studios to reach both new customers and new markets,” said Leeny Oberg, Chief Financial Officer and Executive Vice President, Development for Marriott International. “We are excited to join forces with Concord Hospitality and Whitman Peterson on our first three projects and are in discussions with owners for more than 250 new development opportunities under this brand.”

Project MidX Studios will deliver a streamlined, light-touch, digital-first operating model that focuses on the needs of a budget conscious consumer, with conveniences like pay-and-go retail and check-in with Marriott Mobile Key.

The brand is designed for guests in search of affordable, flexible accommodations for an extended stay, typically 20+ nights or more, who are seeking to pay around $80 per night, depending on the market and demand.

Project MidX Studios will offer both single or double queens, in-room kitchens and closet space. They will feature on-site guest laundry, gym, and pet-friendly facilities.

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