Marriott CEO Arne Sorenson
BETHESDA, MD–Marriott International is moving its global corporate headquarters about five miles down the road to a build-to-suit 700,000-square foot facility in downtown Bethesda that Marriott will lease.
Where exactly in Bethesda is unclear as Marriott is still pondering a number of sites and will make a final decision in the first half of 2017.
Marriott will occupy the new space before its current one-million-square foot lease at 10400 Fernwood Rd. expires in late 2022. That site will also include a 200 plus Marriott-branded hotel.
What is certain is that the global hotelier is staying put in Montgomery County. “Marriott has been headquartered in Montgomery County, Maryland for more than 60 years and we intend to remain close to our roots,” CEO Arne Sorenson said in a prepared statement.
Sorenson said the company considered sites in Arlington, Fairfax, Washington DC and North Bethesda.
The Washington Post reports that the company is receiving some $62 million in subsidies from the county and state, including $44 million in grants plus $18 million in tax benefits. It noted that Marriott received about $43 million in incentives about 20 years ago when it last contemplated a headquarters move, and that much of the promised economic payback to the state and county never materialized.
This time around, though, Marriott negotiated with a stronger hand thanks to its merger with Starwood Hotels & Resorts Worldwide. The combined organization will be the world's largest hotel company, operating or franchising more than 5,500 properties with 1.1 million keys worldwide.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
