BETHESDA, MD—Maryland may be part of the vibrant larger Washington DC market but it clearly suffers from a reputation – valid or not depending on whom you ask – that it is not a friendly place for businesses.

The latest data point to support this notion comes from Marriott International, which plans to relocate its 900,000-square foot headquarters from Bethesda when its lease expires in 2022, according to CEO Arne M. Sorenson. Sorenson told The Washington Post that the company will stay in the region, a statement that no doubt has already touched off plans for an intense lobbying campaign in Virginia and nearby states.

Reading between the lines it seems that Washington DC itself could be a viable contender--Sorenson said he considered the Washington area the hospitality capital of the world, with such firms as Hilton Worldwide, Choice Hotels, DiamondRock Hospitality and other firms in close proximity. He also noted that Marriott needed to be able to attract up-and-coming talent, which suggests he has an urban location in mind.

"I think it's essential we be accessible to Metro and that limits the options," he told the Post. "I think as with many other things our younger folks are more inclined to be Metro-accessible and more urban."

Marriott's decision adds to a long-standing narrative that Maryland is not business friendly. This was a theme that arguably propelled Maryland Gov. Larry Hogan to victory last November – he is the rare Republican governor in what is traditionally a blue state.

Indeed, Virginia's corporate income tax rate is 6%, compared with Maryland's 8.25%. In another article, The Washington Post noted that Maryland has only four Fortune 500 companies, compared with more than 20 each in Virginia and Pennsylvania.

Instant Insights /

In Blow to Maryland, Marriott to Depart

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