Marriott is testing the waters of the hot Hamptons rental market.
The hotel company’s short term rental business, Homes & Villas By Marriott, has teamed up with a local Hamptons company StayMarquis to offer luxury vacation rentals.
StayMarquis, founded by two Long Island natives, has 600 properties on its platform. The company does not own the properties but earns a commission managing the properties for individual owners. Properties are priced from $300 per night to $15,000 per night. In addition to its own platform, the company lists on sites such as Airbnb, Vrbo, and HomeAway.
Bryan Fedner, a co-founder of StayMarquis, said that the company has no outside investors and has been cash flow positive since the beginning.
StayMarquis charges a 10% commission for marketing and payment processing, or 20 percent for a full set of services that include handling the transaction, providing 24/7 concierge service and stocking the property with premium bedding, towels and bath amenities.
According to The Real Deal, Marriott has listed 150 StayMarquis rentals in its network, all of which are properties managed under the 20% model.
Although the vacation rental markets have been decimated due to the travel bans, the Hamptons saw surging demand for vacation rentals given its popularity with wealthy New Yorkers as a place of retreat due to its proximity to New York City. Renters are favoring destinations that are within driving distance.
The Hamptons also is an extremely attractive market for Marriott because they have no hotel presence. According to Jennifer Hsieh, vice president of Marriott’s Homes & Villas, the company was eager to be “in markets where we [Marriott] do not have hotels” and for the Hamptons’ appeal to “millions of New York [Bonvoy] members.”
She noted that Homes & Villas are “in 250 locations, 80 of which do not have its hotels.” Home & Villas’ guests can use points earned from Marriott’s Bonvoy loyalty program, which has 140 million members.
Western U.S. is another area of focus for the company. Hsieh said that it is projecting higher bookings and is working to add properties in California, Oregon, and Colorado.
photo credit: StayMarquis