How Noble Is Integrating Modular Construction into Its Branded Long-Term Accommodations Platform

By Stefani C. O'Connor

Parsing the state of modular construction is a bit like sussing a Picasso; best to start with the frame to get your bearings, then focus.

The “frame,” in this case, is hotel construction in general in the United States. March data released Thursday from CoStar/STR showed a downward shift (-7.5%) year-over-year for the third consecutive month in the number of hotel rooms under construction (144,760 rooms across 1,216 projects). That slide is cushioned, however, by a 10.9% increase in planning (representing 359,878 rooms) and a 3.7% boost (273,068 rooms) in final planning.

That potential could revive greater interest in modular construction for owners, developers and investors in the U.S., where the process was a hot topic last decade, fueled by signature projects such as the 21-story citizenM New York Bowery and 25-story AC Hotel by Marriott in the city’s NoMad district. Before long, other domestic metro areas were touting their ModCon hotels, with many projects carrying mega-chain and other brands.

Despite its surge in popularity, however, the process over the years has not resonated to the degree that the industry’s numbers-crunchers have carved it a niche. For example, ModCon doesn’t have its own lane within CoStar/STR’s construction data.

Noble Moves Forward

Noble Investment Group is currently in development with its first modular construction project: a Marriott StudioRes in Greensboro, North Carolina.

“Our approach to modular construction is rooted in the same fundamentals that have guided Noble for decades: disciplined decision-making, thoughtful innovation and a focus on execution. For this project, the alignment of the Marriott StudioRes brand prototype, site logistics and project timeline made modular a compelling solution,” said Benjamin (Ben) Brunt, managing partner and chief investment officer.

Noble currently has 12 construction projects underway—it broke ground on seven StudioRes hotels in Q1— with 20 projects planned for this year and next.

The ModCon project is a four-story, 124-key, midscale, extended-stay property. Brunt explained the units are being constructed offsite in a controlled manufacturing facility.

“Each fully outfitted guestroom is delivered to the site with all fixtures and finishes in place. Once on-site, modules are stacked floor by floor, significantly reducing vertical construction time. We anticipate a total timeline compression of four to six months, supporting earlier stabilization and a more efficient path to cash flow,” Brunt said.

“Modular construction enables us to reduce build time, manage labor availability, and improve cost certainty—important considerations in the current environment,” he added. ”The selected site, located in a high-growth submarket with strong demand drivers, also provided the logistical access and zoning flexibility required to support modular delivery.”

The Greensboro project also is the first StudioRes utilizing ModCon, and Brunt credited Noble’s longstanding relationship with the franchisor as key to moving it forward.

“As we explored modular construction for this project, Marriott was not only supportive, but they were also collaborative, recognizing the opportunity to scale the brand more efficiently. The Greensboro project reflects the shared confidence between Noble and Marriott in piloting innovative approaches that support thoughtful growth,” Brunt said.

Best Fits

Asked whether certain markets or hotel segments are a better fit for ModCon projects, Noble’s Brunt suggested the greatest value of modular construction lies in its ability to bring greater certainty to an increasingly complex development environment.

“In a market where labor availability is inconsistent, material pricing remains dynamic and timelines are under pressure, modular allows us to mitigate risk across all three. By shifting key construction activities offsite, we reduce exposure to delays, compress schedules and improve cost predictability. For Noble, the benefit is clear: faster stabilization, earlier income generation and a more-efficient path to project completion,” he said.

Crucial Components

Brunt noted when opting for ModCon, monitoring the front end and the plan’s progression is critical.

“Modular construction requires a high degree of precision and alignment early in the development cycle,” Brunt explained. “Success is won or lost in the planning phase—design, procurement, entitlements, utilities and brand reviews must all be fully coordinated before manufacturing begins. Once production is underway, changes can be costly and difficult, making upfront execution critical.”

As a strategic investor, Noble is monitoring three key factors: adherence to schedule, cost performance versus traditional construction and guest experience.

“If the product delivers as expected in these areas, modular has the potential to become a scalable solution within Noble’s long-term, extended-stay development platform,” Brunt said.

With more than 60 investments in the pipeline, Brunt indicated Noble’s outlook was positive.

“Modular is not a silver bullet, but it’s a powerful tool, particularly in markets where speed and cost control matter most. Early indicators are promising, and we see a clear path to scaling modular across future developments in this sector.”

https://www.hotelinvestmenttoday.com/Development/Owners/Mulling-ModCon