Marriott plans rate boost in Europe as business travel resumes

Marriott International Inc., the biggest US hotelier, plans to increase room rates in Europe and forecasts that within 18 months, average prices on the continent will match those seen before the economic crisis.

Room rates in London have already surpassed pre-recession levels, Amy McPherson, president and managing director for Europe, said today in an interview at a hotel industry conference in Berlin. Rates are rising in Paris and Germany as business travelers return to the chain, she said.

“We see more opportunities, particularly in London, Paris and some of our gateway cities in 2011, to also have absolute rate increases,” McPherson said. Marriott has predicted that revenue per room across the Bethesda, Maryland-based company’s lodgings will gain 6 percent to 8 percent this year.

Marriott’s expansion plans in Europe are on track, according to McPherson, who said in March 2010 that the company intended to double its number of rooms in Europe to 80,000 by 2015. She joined Marriott in 1986 and was executive vice president of global sales and marketing before taking the European position in 2009.

The company will focus on adding hotels in Europe’s mature markets including the UK and Germany, the executive said. US hoteliers are seeking to expand in Europe, Asia and Latin America as their home market offers fewer opportunities. Marriott and Spain’s AC Hotels started a joint venture this year to manage and franchise a new brand in Europe and Latin America.

Marriott will open its first European Autograph Collection brand hotels this year, the executive said. The luxury hotels will be added in Spain by May, she said.