Introduction

Marriot International is a worldwide functional enterprise that brings about hotels and
accommodation facilities in more than 120 countries and branches around the world. The
company now is headed by the president and chief Executive officer Arne Sorensen’s. There are
12 members team of current Board of Directors; out of the four females and eight are male
members and they have been working for Marriott International, Inc. for almost 20 years and
they have dedicated half of their lives to grow the company and maximize the investors’
prosperity. Marriot completed a union with Starwood on 23 September 2019 and with more than
5,700 assets, 1.19 million rooms, and a new assortment of 30 brands producing the world’s
largest hotel company.

In 1957, the twin bridges Marriott Motor Hotel was the first hotel of Marriott international in
Virginia is Marriott international’s prolonged and constantly running lodging house and in 2009
its 50 anniversary was celebrated. The company changes its logo Time by Time. With the
expansion of the airline industry in 1993, Marriot initiated to build new hotels nearby airfields.
Over the years, the company expended over $3 billion for the development of hotel businesses
and hotel lodgings. Marriott International, Inc. has the biggest membership numerous explorers
programs in the hotel management industry, with over 100 million participants. Marriott has
long-lasting connections with regular business travelers across a broad-brand portfolio.

Marriott usually is accountable for preparation, employment, and administering the supervisors
and employees, which are required to operate the services for buying supplies, and the holders
are responsible for recompense Marriott for those expenditures. Marriott concentrated on asset-
light supervision and franchise strategy, which should keep producing substantial revenue yields
to investors over time.

Marriott has been opposing in an extremely challenging trade, and the business rivalry is high.
Because of the rate of product variation and switching, costs are relatively low. Marriott has
various old opponents, such as Hilton and Hyatt, which constantly have the price similar for the
hotel accommodations. People could always strive for the finest rates for the greatest experience,
and the propensity is to fall the costs to a reasonable level. Porter’s Five Forces Analysis is an
implementation process that was formed to evaluate the level of business challenges. This tool is
consists of the following components: the danger of new competitors, risk of alternatives, trading
power of clients, haggling power of dealers, and diligence rivalry. The hotel chain business is
greatly influenced by the explorers and tourists, which are worldwide associated with high
capital rates. Because the lodging marketplace is capital intensive and for a big-scale arrival that
constructions, beautifications and architecture, ICT frame, and training staffs are very costly
upfront investments. Marriott has been working in established marketplaces, which are ruled by
countless worldwide hotel corporations.

Financial analysis

On the National Association of Securities Dealers Automated Quotation (NASDAQ) Marriott

stock is traded. Since March 13, 2017, there were 382 million shares of Common stock
outstanding alleged by 38,127 shareholders with about 39% insider proprietorship, 38.64%
official tenure, and 12.11% of shares held by joint resources. The collective market value of
dividends of common stock held by Third parties in June 2016 was $12.42 billion. In 2010,
Marriott declared the plan to increase over 600 hotel assets in 2015. Some of the
accompaniments will be positioned in developing marketplaces: India, China, and Southeast
Asia where it makes strategies to develop 100 lodging house chattels. The plan helped to produce
cost and modification to deliver firm performance for the stockholders.

Marriott’s visions are bright, it proclaimed to expand its structure by 300,000 rooms and rise
wages per share by 17% to 21% compounded and return approximately $9 billion to investors in
the upcoming three years. The hospitality business is extremely modest, which can shake
Marriott International, Inc.’s capability to contend effectively with other lodging belongings,
household, and apartment allocation facilities for the clients. Marriott has been challenging with
many opponents, which have very worthy brands and customer appeal that consist of Hilton,
International Hotel Group, Hyatt, Wyndham, Accor, Choice, Carlson, Rezidor, Best Western,
and La Quinta. In both domains market and the world marketplace, the important opponents are
Hilton, International Hotel Group, Wyndham, and Hyatt. Many of them have additional assets
than Marriott (5,700 properties), such as Wyndham (8,140 properties) and Choice (6,553
properties).

According to hotel chain business statistics, there are roughly 1040 lodging running corporations
in the United States, and 20 of them that control around 100 properties. With a $34 billion
market capitalization, at the end of 2016, Marriott becomes a biggest lodging business firm. But,
this did not make the lodging industry less challenging, and the company required to remain
more cogent and inventive in the marketplace that consist of many rivals.

Stable prices are not an issue or a threat to Marriott at this point of time that the devaluation and
remuneration are 0.98% ($167 million) out of the total profits ($17.072 billion) in 2016. Hilton’s
fixed charges are relative high that is 5.88% ($686 million) out of total expenses ($11.663
billion) in 2016. Assets and tools are documented at past cost, which contains profits and real
estate taxes that acquire during expansion and structure. Marriott benefit from the budget of
developments that cover the valuable life of goods and tools, which comprises of mechanical
costs, equipment, furniture, floorboards, and wall casings that most expenditures are sustaining
and renovating those objects.

The beneficial lives of those articles are as following: equipment (15-20 years); fixtures, such as
pendant lamp (3-5 years); floor (10-20 years); wall coverings (1-3 years); and assets (three to 40
years). The advantageous lives of each element may modification by all kinds of circumstances,
such as destruction by humans, or natural calamities. Marriott’s expenses is consist of base
managing fee, inducement organization fee, license fees, expenses from lodging belongings that
it keeps or rents, and cost settlements. Marriott acknowledged base management and incentive
management fees when it received under the agreements. Marriott would obtain an application
fee at hotel inaugural, and recognized authorization fee in each secretarial period. Marriott
documented room auctions and incomes from the guests when rooms are reserved and
facilities are delivered. Marriott accepted cost settlement from accomplished, contracted, and
licensed assets when the related reimbursable costs acquired.

Under Sorenson’s management, Marriott’s yearly transactions development amplified at least 5% per
year and the normal transactions progress rate was 9.7% from 2012 to 2016. In 2016, the yearly sales
greater than before nearly 18% when matched to FY2015. From 2013 to 2016, Marriott proficient the
escalations in return on properties (9.21%, 10.97%, 14.12, and 3.23%), return on common fair play
(9.55%, 10.62%, 11.16%, and 6.34%), and gross profit margin (13.41%, 13.18%, 13.7%, and 14.4%).
Moreover, total asset revenue and functioning asset business reduced from 2.38 to 0.71 and 4.39 to
2.81, correspondingly, in 2016. From 2013 to 2016, Hilton accomplished the rises in return on resources
(1.73%, 2.61%, 5.51%, and 1.39), return on common equity (10.54%, 14.35%, 23.66%, and 6.17%), and
gross profit margin (11.32%, 15.93%, 15.66%, 15.88%). Additionally, working asset revenue decreased
from 0.9 to 0.87 in 2016. Both Marriott and Hilton have large strength bases, which meant they would
gradually turnover their assets through sales. Marriott has a higher total 16 asset turnover rate than
Hilton (0.71 vs. 0.44), which meant Marriott has been performing more competently than Hilton.

Technical analysis

Technical analysis is the overview of historical marketplace statistics, including costs and measurements.
Chart patterns and statistical (technical) indicators are the most commonly used types of technical
analysis. Technical analysis tries to forecast future cost movements, providing stakeholders with the
information required to make a revenue. Technical analysis is frequently used to produce short-term
trading signals from different charting tools, besides that it can also help in the improvement of the
analysis of a security's strong point or weakness relative to the comprehensive market or one of its
subdivisions. This evidence helps experts expand their general assessment approximation.

This comprises of stocks, investments, merchandise, fixed-income, exchanges, and other safeties. There
are two basic approaches used to evaluate sanctuaries and make investment decisions: fundamental
analysis and technical analysis. Fundamental analysis encompasses evaluating a company’s economic
statements to conclude the fair value of the industry, while technical analysis undertakes that a
sanctuary's cost already reflects all publicly-available statistics and instead emphases on the numerical
exploration of cost movements.

By the analysis of this report, the comparison of three ratios gross profits, interest cover current ratio or
Earning per share (EPS). Increment in gross profit margin point toward well-organized procedures in a
company. A decreased ratio designates that developments may not be as effectual as they could be.
Gross profit margins are also used to investigate the efficiency of discrete merchandise or services. A
corporation's interest coverage ratio regulates either it can pay off its amount outstanding. The ratio is
calculated by dividing EBIT (earnings before interest taxes) with the company’s interest Expenditure. The
greater the ratio, the more important it is to pay its debts. Investors can custom the proportion to select
whether they will loan to the company. Earnings per share of the company reflect the strength and
demand of the company and if the comparative percentage of EPS is 25 percent, then the company
along with its products are in high use and in more demand by the consumers.

Gross profit = difference of net sales of the company from the cost of the company.

Interest cover= a ratio calculated by division of company earnings before interest and taxes by
company interest expenses

EPS=Earnings per share calculated by dividing net income with total number of shares.

Calculation of gross profit= (sale price-cost to produce) Interest cover=company earnings before
taxes/company expense EPS=net income/total number of shares.

Net income of three years 2017-2019 of Marriott international = 1459 Million, 1907 Million, 1273
Million. According to the analysis report of 2017, Earnings per share increase at exceptional rate of 32
percent per year .while the revenue of the company increased 3 percent in 2017.Cost of company in
that year reaches up to $250 million.

By the end 2018, there is increase in earnings per share about 48%, while net income was $2.2 billion,
worldwide revenue increase 2.6 percent in this year.

In 2019, Gross revenue increase to about 5 percent and reach the value of $3.8 billion.