Marriott Hotels Selects Site to Build Corporate HQ in Bethesda

BETHESDA, MD – Three months after completing a two-year 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. has signed the necessary letter of intent to relocate its global corporate office to downtown Bethesda. A state-of-the-art, build-to-suit $600-million facility will be built at the intersection of Wisconsin, Woodmont and Norfolk avenues.

Montgomery County has been Marriott’s home for more than 60 years. Officials with Marriott International have signed a development partnership between The Bernstein Companies and Boston Properties for construction of a 700,000-square-foot headquarters building and a 230-room full-service Flagship Marriott Hotel downtown, county leaders said Friday.

“I am pleased with Marriott’s decision and its continued commitment to remain here in Montgomery County," said County Executive Ike Leggett. "I also want to thank Governor Hogan and his administration for their unwavering support of this significant project. This project retains the headquarters of Montgomery County’s largest private employer, strengthens our tax base, and brings even more vibrancy to downtown Bethesda. Marriott has been a first-class corporate citizen and a great partner for the county.”

The new Marriott complex will house more than 3,500 employees in roughly 700,000 square feet of leased office space. 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.

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.

Leggett told Patch in 2015 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 the company's announcement in October, 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 Hogan in October. “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.