FINANCIAL ANALYSIS OF FAIRFIELD by

MARRIOTT

FAIRFIELD by MARRIOTT

Submitted by:
Students Name: HERSH KUMAR
Class: B.COM (HONS.)
Enrolment no: A7004615094
Specialization: FINANCE

Under guidance of:

Industry Guides name: VIVEK BHANAWAT Faculty Guide:

SUNITA BILANI
Designation: DIRECTOR OF FINANCE Designation:
Professor
Organization: FAIRFIELD by MARRIOTT ABS, Lucknow

(SUMMER INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF FULL
TIME DEGREE OF B.COM (HONS.) (2015-18))
 AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH LUCKNOW

STUDENT’S CERTIFICATE

Certified that this report is prepared based on the summer internship project undertaken by me in

Fairfield By Marriott from 29th May 2017 to 12th July 2017, under the able guidance of Ms.

Sunita Bilani in partial fulfillment of the requirement for award of degree of Master of Business

Administration B.Com from Amity University, Uttar Pradesh.

Date: 18/07/2017

Hersh Kumar Sunita Bilani Prof. Harshvardhan Verma

(Student Name) (Faculty Guide Name

with Designation) Director (ABS)
 FACULTY CERTIFICATE

Forwarded here with a summer internship report on “Financial Analysis Of Fairfield by

Marriott” of Coca Cola submitted by Hersh Kumar. Enrollment No.A7004615094, student

of B.Com Vth Semester (2017-18).

This project work is partial fulfillment of the requirement for the degree of B.com (hons.)

from Amity University Lucknow Campus, Uttar Pradesh.

Sunita Bilani,
Professor
(Faculty Guide Name with Designation)

Amity University,
Lucknow Campus
 Acknowledgement

I would like to express my special thanks of gratitude to my faculty guide Dr. Sunita Bilani as well

as my industry guide Mr. Vivek Bhanawat for supporting me. My faculty guide gave me the golden

opportunity to do this wonderful project on FINANCIAL ANALYSIS OF FAIRFIELD by

MARRIOTT, which also helped me in doing lot of research work and I came to know about so

many new things about the company.

Secondly, I would also like to thank my friends who helped me in finalizing this project within the

limited time frame.

TABLE OF CONTENTS
 CHAPTER: 1

INTRODUCTION
SIGNIFICANCE OF STUDY:

The study during which I’m concerned for my summer internship Programme is expounded to
finance. The financial activities that controls the finance department of Fairfield by Marriott.

The importance of the finance is at the bottom level; your accountants are going to be to blame
for all the regular transactional accounting for the business. This can embody the trailing of all
transactions and therefore the management of any government news. In terribly tiny owner-
managed businesses, this role is commonly stuffed by a loved one with
accounting expertise. An out of doors business firm is sometimes used for annual money
statements and returns. In larger organizations this role can extend all through to getting
ready the money statements with associate degree external auditor engaged for
assurance functions.

The part of a company that manages its cash. The business functions of a finance
department usually embody coming up with, organizing, auditing, accounting for
and dominant its company’s finances. The finance department conjointly typically produces the
company's money statements.
When some component of the finance method breaks down corporations leave of business and
therefore the economy moves into recession. For example: If a significant bank loses a
big quantity of cash and faces the danger of economic condition, alternative banks and
company customers can stop disposal or depositing cash to the matter bank. It’ll then
stop disposal to its customers and that they won't be able to purchase the products or pay the
bills that they were seeking funding. The flow of cash throughout the financial set-up slows
down or stops as a result.
For rising economies, money educated shoppers will facilitate make sure that the financial
sector makes a good contribution to real economic
process and poorness reduction. However money acquirement is additionally crucial for a lot
of developed economies, to assist guarantee shoppers save enough to produce associate
degree adequate financial gain in retirement whereas avoiding high levels of debt which
may lead to bankruptcy and foreclosures.
The information out there on client money acquirement is worrying for 2 reasons –
not solely do people usually lack associate degree adequate money background or
understanding to

Navigatetoday’s complicated market, howeversadly they conjointly usually believe

that they're way more financially literate than is admittedly the case.
It has discharged initial the major international study on money education
(entitled rising money Literacy) additionally because the world’s
first sensible pointers on sensible practices in money education and awareness.
These area units self-addressed to all or any countries, developed and developing, that have an
interest in money education and area unit styled to assist them design and implement
effective money education programmes. These pointers, within the type of a non-binding
recommendation, area unit drawn from the expertise of OECD countries on best observe during
this space.

They promote the role of all the most stakeholders in money education:
governments, money establishments, employers, trade unions and client teams. The
advice requires variety of actions to enhance money education , from basic savings and
personal debt management to assessing whether or not your pension savings area unit adequate.
They conjointly draw a transparent distinction between public data provided by government
and regulative authorities, which provided by personal sector investment advisors like banks
and brokers.

Financial management of your tiny business encompasses over keeping associate

degree correct set of books and leveling your business bank account. you need to manage your
finances therefore you don’t overspend so you stay ready for all expenditures, additionally as
profit distributions. Your money management responsibilities have an effect on all aspects of
your business. An organization that sells well however poor money management has will fail.

It helped Pine Tree State in understanding varied money activities such as:
• Capital Expenditure
• Operating money
• Lowering Expenses
• Tax coming up with
 Scope and Objectives of the study:

PRIMARY OBJECTIVE:

The primary objective of my study for this report is to get ample information for the financial
analysis of Fairfield by Marriott

SECONDARY OBJECTIVES:

The secondary objectives of report are:-

 Study about the present financial position of the company
 Hilton and Hyatt hotels being the biggest competitor of Fairfield by Marriott
 The loopholes in finance department of Fairfield by Marriott
 How the finance department of a hotel works
 Apply the fundamental concepts and tools of finance.
 Apply financial management concepts and tools to the decisions faced by a manager in
investment decisions.

AREA OF STUDY:

My working area was Lucknow. The research was mainly based on the finance sector of the
Fairfield by Marriott. So for detail knowledge I talked with my seniors such as Finance
Executive (Shivam Shukla) and Director of Finance (Vivek Bhanawat).
The hotel was only of Account Receivables (A/R) property and the Renaissance Lucknow was
Accounts Payable (A/P) property so I mainly gathered much information on Accounts
Receivables

PERIOD OF STUDY:

My period of study was of 45 days in which I had a great experience of learning new things in
Finance sector
 Chapter: 2
COMPANY PROFILE
Marriott International, Inc. is an American multinational diversified hospitality company that
manages and franchises a broad portfolio of hotels and related lodging facilities. Founded by J.
Willard Marriott, the company is now led by his son, Executive Chairman Bill Marriott and
President and Chief Executive Officer Arne Sorenson.

Marriott was supported by John Willard Marriott in 1927 once he and his married person, in
Washington a soft drink stand was opened. As a Mormon missionary within the wet summers
in Washington, D.C, Marriott was convinced that what residents of town required was an area to
induce a drink that was cool. a series of hotels and resturants was the most important
enlargement of Marriott’s enterpise.

The first building was opened, the dual Bridges Marriott hotel, in city, Virginia, in 1957. Their
second building, the Key Bridge Marriott within the Rosslyn neighborhood of constant town, is
Marriott International’s longest unceasingly operating building, and celebrated its fiftieth day of
remembrance in 2009. Their son, J.W. (Bill) Marriott, Jr., semiconductor diode the corporate to
fantastic worldwide growth throughout his quite 50-year career. In March 2012, at the age of
eighty, he turned to the post of CEO responsibilities over to Arne Sorenson, whereas he took the
title of govt Chairman.

Marriott International was shaped in 1993 once Marriott Corporation divided into 2 firms,
Marriott International and Host Marriott Corporation. In 1995, Marriott was the primary
building company worldwide to supply guests the choice to book reservations on-line, via the
company's implementation of MARSHA (Marriott's Automatic Reservation System for building
Accommodations).
Marriott International was shaped in 1993 once Marriott Corporation split into 2 firms, Marriott
International and Host Marriott Corporation. In 1995, Marriott was the primary building
company worldwide to supply guests the choice to book reservations on-line, via the company's
implementation of MARSHA (Marriott's Automatic Reservation System for building
Accommodations).

In Apr 1995, Marriott International no heritable forty ninth interest in Ritz-Carlton building
Company LLC. Marriott International believed that it might increase sales and profit margins
for The Ritz-Carlton, a troubled chain with a big range of properties either losing cash or barely
breaking even. the value to Marriott was calculable to own been regarding $200 million in
money and assumed debt. ensuing year, Marriott spent $331 million to require over The Ritz-
Carlton, Atlanta and purchase a majority interest in 2 properties owned by William Johnson, a
true estate developer WHO had purchased The Ritz-Carlton, Boston in 1983 and enlarged his
Ritz-Carlton holdings over ensuing twenty years.

The Ritz-Carlton began enlargement into the well-paid timeshare market and undertook
different new initiatives created financially potential by the deep pockets of Marriott, that
additionally Lententide its own in-house experience in bound areas. there have been different
edges for Ritz-Carlton flowing from its relationship with Marriott, like having the ability to
require advantage of the parent company's arrangement system and shopping for power. The
partnership was coagulated in 1998 once Marriott no heritable a majority possession of The
Ritz-Carlton. Today, there square measure eighty one Ritz-Carlton properties round the world.

On July 5, 2016 Fairfield by Marriott was inaugurated with a recent workers and registering
itself within the list of classic hotels. The building executes its operations on tips the rules
issued by ISRA (International Standards of assets Audit) and a few guidelines issued by
Renaissance Lucknow.
The company chiefly conducts its operations on 3 software’s they're Shawman, Micros OPERA
and Sun elite.

Marriott International developed the construct for Fairfield hotel within the late Nineteen
Eighties to contend with different economy limited-service (ELS) building chains (below $45 a
night) like Days hotel, jazz musician hotel, and Red Roof hotel. the primary location opened in
Gregorian calendar month 1987 in Atlanta, Georgia. Facing well-established competition,
Fairfield hotel required a technique to differentiate itself from its competitors. Management
enforced record book terminals to permit guests to rate the hotels as either 'excellent', 'average',
or poor'. Marriott was then able to track vital metrics and supply superior client service. in
addition, Fairfield hotel placed a significant stress on quality personnel choice to seek out
friendly and positive workers that may additionally facilitate scale back turnover. This was
supported by providing higher wages than competitors (at the nowadays within the prime
twenty fifth of wages at intervals the lodging industry).

In the early 2010's Senior vice chairman responsible of Fairfield hotel, Liam Brown needed the
whole to maneuver from the budget tier of hotels into the moderate tier by renovating newer
locations and shutting aging locations. the main focus of this reinvestment into the whole was
specializing in the guest by introducing new bedding, occasional within the building rooms,
Early chuck breakfast program and newspaper delivery. Brown believed this investment would
enable Marriott to contend head to go with Hilton's jazz musician hotel.
Many properties have amenities like a pool, exercise space, whirlpool, same-day cleansing,
marketing machines, business centers, and meeting rooms. Early properties had outside
corridors on the primary 2 floors and ancient interior halls on the third floor, likewise as stucco
paint. Now, all new hotels have ancient interior halls and variety of styles. The whole erst
enclosed properties dubbed "Fairfield Suites"; but, in 1998, those properties became the
separate Springhill Suites chain at intervals the Marriott corporation. several properties feature
each suites and rooms, and these square measure referred to as "Fairfield hotel and Suites." As
of February 2017, there square measure a complete of 800 Fairfield hotel hotels worldwide.
SWOT ANALYSIS
Strengths

1. High brand acknowledgment and recall

2. Technical innovations to improve customer experiences and Constant upgrade of business
processes
3. Good employee retention with a total workforce of 150,000
4. Has over 3700 hotels and resorts in over 70 countries
5. Various brands range from attainable to aspirational

Weaknesses

1. Competition from long established hotel chains means limited market share
2. Global expansion and high number of hotels may lead to brand dilution

Opportunities

1. High potential in growing markets

2. Innovation in customer services and facilities
3. Better interiors/Well done facelifts
4. Indian and as well as global hospitality sectors are looking at a boom
Threats

1. Entry of several international brands along with the strong hold of long standing, well
established Indian brands
2. Competition on priceing points
3. Detonate growth

Competitors

1. Hilton Hotels and Resorts

2. Hyatt Regency
3. Taj Hotels

Future Prospects of Fairfield by Marriott:

The Fairfield by Marriott complete could be a leader within the moderate-row class, and
provides to worth minded, momentum seeking travelers. The brand’s objective is to outline
cordial reception at its best by providing soothing areas, natural décor and luxury home-food.
Fairfield aims to revive and revitalize guests mentally and physically, so they will attain the
most effective performance.

It is a believe the market is right for a complete like Fairfield that sets the standards of
delivering a reliable building expertise at a good worth. With this building Marriott still
strengthen their position in Lucknow. This building can facilitate them gain a formidable
presence within the market, together with providing a strategic advantage of getting a multi-
brand presence within the town.
In view of associate increasing demand for quality mid-range accommodation, Marriott
International any expands its footprint into the moderate tier building phase in Asia with
thirteen Fairfield by Marriott hotels signed in India.

GOVERNMENT POLICIES:

Luxury and different service taxes in cordial reception quantity to quite twenty second
compared with the planned eighteen underneath the GST regime. "Overall, GST ought to be
positive for the arena presumptuous the multiplicity of taxes can flee in food and beverages.
However, it'll be fascinating to examine the impact of GST in accommodation services, that get
pleasure from a charge per unit of 11th of September," same Suresh Nair.

ORGANIZATION STRUCTURE:
The organization structure of Fairfield is very simple and can be easily understood by everyone
it goes like this:

General Manager

Director

Manager

Executive

Associate
The organizational structure of the company is much similar from other companies as it goes
from top to bottom hierarchy as it is the power of control goes from top position (highest
position) to the lowest position (bottom position) .

Centralization (British), or centralization (both British and American), is the process by

which the activities of an organization, particularly those regarding planning and decision-
making, become concentrated within a particular location or group, keeping all of the important
decision-making powers within the head office or the centre of the organization.

The term has a variety of meanings in several fields. In political science, centralization refers to
the concentration of a government's power – both geographically and politically – into
a centralized government. In neuroscience, centralization refers to the evolutionary trend of
the nervous system to be partitioned into a central nervous system and peripheral nervous
system. In business studies, centralization and decentralization refer to where decisions are
made in the chain of command.

 The monarchical power is the supreme power in the empire. The emperor monopolises all
the resources in the country; his personality and abilities decide the prosperity of the
country. This autocratic system allows for faster decision-making, and avoids complex
solutions to problems that arise. One disadvantage is that courtiers, who compete for the
emperor's favor, are able to amass power for themselves, leading to internal strife.(Jin and
Liu, 1992)
 The administrative department has highly centralised power. The duties of each bureaucratic
occupation are not clearly defined, leading to inefficiencies as functionaries manage the
government and effectively rule the country.
Structural Dimension:

 Formalization-

Bureaucratic it means that the hotel’s work closely follows the rules and a procedure with
little flexibility the job description is closely defined.

 Departmentalization

This says that the organization follows the system of divide and rule. As it says that the
hotel structure is divided into several departments such as:

 Finance
 Purchase and Receiving
 House Keeping
 Front Desk
 Front Desk back office
 Sales and Marketing
 Engineering
 Kitchen and Cutlery
 Events and Banquet
 Food and Beverages
Marriott Vision and Mission Statement:

Vision Statement:

“To become the premiere provider and facilitator of leisure and vacation experiences in the
world”

Mission Statement:

“To enhance the lives of our customer by creating and enabling unsurpassed vacation and
leisure experiences”

Services that are offered:

Social Events:-

 Weddings, Fund raising Parties, Sports Groups, Anniversaries, etc.

 Event Planners available that will help you plan the special occasions.

Meetings:-

 Technology Support, small to grand scale conferencing, global conferences, etc.

Special packages offered:-

 Senior travelling Packages

 Government and Military Packages
  Last Minute Weekend Package, Design your own trip, escape packages
 AAA packages in this the AAA members enjoy the best available discount on hotel rooms
along with special offers from Marriott just for our AAA Patrons.

Stakeholders:
 Independent Owners
 Workforce and Vendors
 Customers and Communities
 Franchisees

Core Values of Marriott:

Marriott follows Michael Porters Growth Strategy:
Social Responsibility:
Marriott International’s another vital goal to possess a roaring responsibility to their
surroundings. For instances all food and hamburgers are employed in pens. Particularly in
Marriott Asia all surplus food from room is employed in pens with collaboration among
Atasehir hall and Marriott Asia.
 CHAPTER: 3
DATA ANALYSIS
AND INTERPRETATION
Methods of Data Collection:

In the report both primary sources of data collection and secondary source of data collection are
used for the information.

 Primary Source of Information

It is by the experience that I have gained from my training which proved to be effective
source of information about the company in which I was training i.e. Fairfield by
Marriott.

 Secondary Source of Information

It is also used. It was only used for some purposes and though only internet and some
magazines like Forbes, Hotels 100, etc.

Research Design:

The research design used is a descriptive one as the findings are mostly based on personal
experience and some information from the internet and magazines like Forbes, Hotel 100, etc.
The major purpose of descriptive research is descriptive state of affairs as it exists at present.
Instrument Used:

The only instrument used is personal experience while training and revenues that the hotel earns
on the daily basis that is shown by the Gross Revenue Report and the Management report that
was made on the daily basis.

Sources of Data:

 Experience
 Internet
 Magazines

TOOLS USED:
Management Report:

Management report is defined as a report which shows the day to day complimentary, discount
and void bills earned by every department of the hotel. One person from the finance department
was given a duty of collecting the credit card folios and bill to companies(BTC) from the front
desk.
The person who was responsible to bring the documents from the front desk also at the same
time has to report to the kitchen for the Kava café(restaurant in hotel) checks for the previous
day and when the those checks and documents to the finance department the person has to sign
on the sheet on the window of the office.
The other person in the office has to take out the reports from the software Shawman and the
checks are then selected with a white copy which is complimentary and then their details are
entered in the system in management report folder.

Credit Card Folios:

These are the folios which are signed by the guest and the credit card sale copy is attached to
the folios. They are to be matched by the report i.e. E170 Credit Card folio.

If any of the folio is missing or is not matching the report the person from the front desk and the
system of the front desk is checked that whether that room number was occupied or not. If due
to some reason the room number is not visible then from Opera software the name of the person
shows the reservation and if nothing is visible the strict action would be taken against that in

Credit Card Transfer:

In the folios there is also a report namely D140 Journal report in that there is credit card detail
report and settlement report and then the transfer of credit card from the opera takes place and
the then the transferred entry is to be filled in the credit card folio file.

Gross Revenue Report:

It is the report which shows the day to day revenues of the department and different sectors
of the organization which gives a clear picture of the organization revenues. The gross
revenue report is checked daily and it is mailed to the owner, director of finance, Food and
beverage manager, Front desk manager, engineering manager, sales and marketing manager.

It mainly tells us what is the occupancy rate and what may be the occupancy rate in the
future what are the resources demand in the future according to that only the purchase
department is given a list of things that are to be ordered for the future purpose.