Marriott Hotels to Build Corporate HQ in Downtown Bethesda

BETHESDA, MD – After nearly two years of searching for a new base for its global headquarters and efforts by Maryland leaders to keep the company's base in the state, Marriott International Inc. announced Tuesday that it plans to relocate its global corporate office to downtown Bethesda. A state-of-the-art, build-to-suit $600-million facility will be built in an unspecified urban site; the county has been Marriott’s home for more than 60 years.

The new complex will house more than 3,500 employees in roughly 700,000 square feet of leased office space. The company is still considering several sites in downtown Bethesda and is expected to select a final site in the first half of 2017. Marriott plans to occupy the new space before the expiration of its current lease at 10400 Fernwood Road in late 2022. Marriott also announced that a 200-plus-room Marriott-branded hotel will be built on the Bethesda site.

Montgomery County Executive Ike Leggett welcomed Marriott's decision to stay in the county, saying it will benefit the company, the state and Montgomery County.

"Marriott has long been a mainstay here and has been an excellent corporate citizen, giving back again and again to help strengthen our community," Leggett said. "The Marriott brand, now the largest in the lodging world, will shine ever more brightly from right here in the county.”

Marriott chief executive Arne M. Sorenson told The Washington Post in March 2015 that he had started talks to find a new site for the Marriott corporate headquarters, which employs about 2,000 in roughly 900,000 square square feet on Fernwood Road. The company’ s lease at the current site is up in 2022.

Montgomery County Executive Isiah Leggett told Patch last year he was confident leaders would be able to find a site in Montgomery County that works for Marriott. The company, which first notified his office of its search plans about a month ago, has set 2020 for its date to be settled in a new headquarters.

“We will do everything within reason to make sure they stay in Montgomery County,” Leggett said in 2015.

Among Sorenson’s criteria for a new location: easy access to the Metro system, to attract skilled younger workers. The existing office is located near Interstate 270 and the Beltway, which is about three miles from Grosvenor station, the nearest Metro stop, the Post says.

“I think as with many other things, our younger folks are more inclined to be Metro-accessible and more urban,” Sorenson said a year ago.

As part of Tuesday's announcement, Sorenson said, “Marriott has been headquartered in Montgomery County, Maryland for more than 60 years and we intend to remain close to our roots. Our goal is to provide a cutting-edge workspace for our associates that offers state-of-the-art technology, modern amenities, and access to a range of transportation options.”

Sorenson added, “We also plan to manage a new 200+ room Marriott-branded hotel to be built on the site, which will be a significant economic driver for the community. After a comprehensive review of many excellent options in Washington, D.C., as well as Arlington and Fairfax counties in Northern Virginia, and North Bethesda, we have narrowed our search to downtown Bethesda, an area which offers multiple sites that meet our priority needs.”

In addition to being home to Marriott’s corporate headquarters, Maryland also has 93 Marriott-branded hotels in the state – totaling nearly 18,000 guest rooms – following the company’s merger with Starwood Hotels and Resorts last month. In 2015 there were more than 10,400 jobs in Maryland at Marriott properties, including its corporate offices, Marriott-managed hotels and franchised properties.

“Marriott is a world-class company with deep roots in our state, and their decision to continue growing their business right here in Maryland is tremendous news,” said Gov. Larry Hogan in a statement. “For over 60 years they have been a vital member of our business community, employing thousands of Marylanders, and making a real and lasting positive impact on our state’s economy.”

Company History

The international hotel chain has more than 5,700 properties in more than 110 countries. Founded in 1927 by J. Willard and Alice Marriott as a nine-stool root beer stand that grew into the Hot Shoppes Restaurant chain, the business eventually became Marriott International hotel company. The Marriott family led the chain for more than 80 years.

According to the company website, Marriott Hotels reported revenues of nearly $13 billion in fiscal year 2013.

Marriott’s 30 brands include the luxury Ritz-Carlton and BVLGARI, along with Courtyard by Marriott, Renaissance Hotels, SpringHill Suites, Fairfield Inn and Suites and more.

Worldwide property level sales of hotels operated or franchised under the company’s 30 hotel brands totaled $62 billion in 2015. The company is ranked 195 on the most recent Fortune 500 list.