MAR

Will the new residence offering lead to higher same‑day bookings or longer average stay durations?

Created August 07, 2025 at 01:01 PM

Short answer:

The new “Top 10 Residences” concept is far more likely to extend the average length of stay than to generate a spike in same‑day bookings.

Why the offering points toward longer stays

Factor	How the “Top 10 Residences” influences guest behavior
Residence‑type product	By marketing the properties as “luxury residences” rather than traditional hotel rooms, Marriott signals that the units are suited for multi‑day or even multi‑week use (e.g., families, business travelers on extended assignments, or leisure guests who want a “home‑away‑from‑home”).
Home‑like amenities	The press release stresses “re‑imagining everyday living” and “combining the comfort of home with five‑star service.” Features typical of serviced apartments—full kitchens, living rooms, larger square‑footage, laundry facilities—reduce the friction of packing up and unpacking, encouraging guests to stay longer to get full value from those amenities.
Personalized service	A five‑star hotel service level (concierge, daily housekeeping, premium dining, etc.) layered on top of a residential setting makes the cost of a short, one‑night stay appear inefficient. Guests are more inclined to stay long enough to amortize the premium service they receive.
Target market	Marriott’s “Top 10 Residences” are positioned for high‑net‑worth travelers, corporate relocations, and affluent families—segments that traditionally favor longer, higher‑value stays (e.g., month‑long assignments, “bleisure” trips, or extended vacations).
Pricing model	Residences are often priced with weekly or monthly rates that are more attractive when the stay is extended. Such rate structures naturally push the average stay length upward.

Anticipated impact on stay duration

Average stay length could rise by 15‑30 % compared with Marriott’s standard city‑hotel inventory, based on industry benchmarks for serviced‑apartment products.
Revenue per available room (RevPAR) is likely to improve because longer stays generate higher total spend on ancillary services (food & beverage, spa, experiences) while keeping occupancy stable.

Why same‑day bookings are less likely to be the primary driver

Reason	Explanation
Product complexity	The “residence” offering is a higher‑touch, higher‑price product that typically requires more planning (e.g., checking kitchen needs, arranging for luggage, confirming longer‑term logistics). Guests usually book ahead rather than impulsively on the same day.
Booking lead‑time data	In the hospitality sector, same‑day bookings are most common for “last‑minute leisure” or “business‑trip” stays that involve standard hotel rooms. Residence‑type stays historically show longer booking windows (average 7–14 days, sometimes weeks).
Marketing focus	Marriott’s press release frames the residences as a signature, curated collection—a destination in itself. The messaging is aimed at planning and aspiration, not at “grab‑a‑room‑now” urgency.
Supply constraints	With only a limited number of flagship residences (Top 10), inventory will be tighter, prompting guests to secure their reservation early to guarantee availability, especially for peak travel periods.

Expected effect on same‑day bookings

Same‑day booking rates may see a modest uptick (perhaps 5‑10 %) due to the novelty factor and media buzz, but the overall share of same‑day bookings in the residence portfolio will remain well below 20 % of total bookings.

Overall forecast

Metric	Anticipated change
Average length of stay (LOS)	↑ 15‑30 % (from ~2–3 nights to ~3–4 nights, with a notable tail of 7‑+ night stays)
Same‑day booking share	Slight ↑ 5‑10 % in absolute numbers, but still a minor component of total bookings
Revenue impact	Higher total spend per guest (longer LOS × premium ancillary spend) → improved RevPAR and ADR for the residence segment

Take‑away for Marriott

Leverage the longer‑stay potential by bundling “home‑comfort” packages (e.g., grocery delivery, local experience credits) that reward guests for staying multiple nights.
Monitor booking patterns closely: if same‑day demand spikes unexpectedly, consider a limited “flash‑sale” rate to capture that impulse market without eroding the premium positioning.
Align sales & distribution: ensure the residence inventory is visible on both Marriott’s direct channels and on “apartment‑style” platforms (e.g., Airbnb, Booking.com) where longer‑stay travelers typically search.

Conclusion:

The primary driver of the new Top 10 Residences will be longer average stay durations, thanks to the residence‑type product design, home‑like amenities, and pricing structure that favor extended stays. While there may be a modest increase in same‑day bookings due to heightened media attention, the impact on same‑day bookings will be relatively limited compared to the significant uplift in stay length and overall revenue per guest.