Marriott boutique chain to stand alone

By Chris Reiter

LOS ANGELES (Reuters) - Marriott International Inc (MAR.N: Quote, Profile, Research, Stock Buzz) expects its Edition boutique hotel joint venture with designer Ian Schrager to stand on its own, with limited links to the hotel company's other brands.

"I'm not sure how visible the Marriott family will be (at Edition hotels)," Marriott Chief Financial Officer Arne Sorenson told the Reuters Travel and Leisure Summit in Los Angeles via teleconference on Tuesday.

"I suspect it will not have an aggressive affiliation between Edition and other Marriott brands," Sorenson said. "It's likely to be much more like Ritz-Carlton" -- Marriott's luxury chain, which operates without obvious connections to its parent.

The lack of links with Edition reflects Marriott's optimism that the new boutique chain, geared toward travelers weary of cookie-cutter accommodations, can be strong enough as a separate entity.

Marriott, which also operates the Courtyard and Fairfield chains, is the No. 2 U.S. hotel operator. The company typically uses the so-called "asset-light" model, which means it manages hotels rather than owning them.

Last month, Marriott said it had signed the first nine development deals for the new Edition chain.

Sorenson said the company's Edition deals have required less cash commitment from the company than typical long-term hotel management deals.

Marriott announced in June plans for an upscale boutique brand in cooperation with style icon Schrager, who helped define an era of New York night life with Studio 54 and went on to pioneer the boutique hotel concept.  Continued...