Dive Brief:
- Marriott International has finalized the selection of a site for its new $600 million headquarters, as well as for a developer to build it, according to the Washington Business Journal.
- The global hotel giant will erect a 700,000-square-foot, 22-story headquarters building — as well as a flagship hotel with more than 230 rooms — near a downtown-Bethesda Metro station, and a Boston Properties-Bernstein Cos. joint venture will develop and oversee the project. The JV will also own the office building component, and Bernstein will own the Marriott as part of a hotel management agreement.
- The estimated completion date is 2022, but state and local incentives, zoning and land use provisions, as well as the development agreement with Bernstein-Boston must still be finalized.
Dive Insight:
Marriott announced in October that the company would keep its headquarters in Bethesda, MD, its home of 60 years, after exploring other options around Washington, DC, and Virginia. City, county and state officials had reportedly struck a deal with the company that kept it from relocating.
The new headquarters — designed by Gensler — will reportedly allow for an abundance of natural light, feature a floor plan that encourages collaboration and will include an employee childcare facility, cafeteria and fitness center for approximately 3,500 employees.
The hotel industry, which has seen six straight years of construction-start increases, might be in for a small contraction in 2017. According to the 2017 Dodge Construction Outlook released in October, hotel construction starts are expected to decline by 1% (70 million square feet) this year. Dodge said convention center and casino growth had given the hotel industry a boost, but vacancy rates were up and supply was in danger of overcoming demand. However, according to a November JLL report, certain cities like Nashville, New York, Seattle and Denver should see continued hotel construction growth.
