Marriott to Expand by Converting Competitors’ Hotels

According to a Bloomberg News, Marriott International Inc. plans to expand by taking over the operation of hotels from competitors unable to pay or refinance debt.

Marriott, owner of about 45 of the 3,000 hotels that carry its flag, expects conversions to help the company gain market share during the global recession.

The value of hotel properties in default or foreclosure surged to $17.3 billion in the second quarter through June 24 from $9 billion at the end of the first quarter, according to data compiled by Real Capital Analytics Inc.

The article states that the hotel group intends to add 110,000 rooms, including 30,000 this year, to its current total of about 577,000. About 50 percent are under construction at the chain’s hotels, while 6 percent are being converted from rival brands. Most of the remaining projects are on hold as the property owners wait for building costs to drop or seek financing amid the credit crunch.