INTRODUCTION

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Marriott International, Inc. is a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities. Founded by J. Willard Marriott, the company is now led by son J.W. (Bill) Marriott, Jr. Today, Marriott International has about 3,150 lodging properties located in the United States and 67 other countries and territories.

History
Marriott was founded by J. Willard Marriott 1927 when he and his wife opened a root beer stand in Washington D.C. As a missionary in the sweltering, humid summers in Washington, Marriott was convinced that what the city needed was a such a place to get a cool drink. They later expanded their enterprises into a chain of restaurants and hotels. The Key Bridge Marriott in Arlington, Virginia is Marriott International’s longest operating hotel, and will celebrate its 50th anniversary in 2009. Their son and current Chairman and Chief Executive Officer, J.W. (Bill) Marriott, Jr. has led the company to spectacular worldwide growth. Today, Marriott International has about 3,150 lodging properties located in the United States and 67 other countries and territories. Marriott International was formed in 1992 when Marriott Corporation split into two companies, Marriott International and Host Marriott Corporation. In 2002 Marriott International began a major restructuring by spinning off many Senior Living Services Communities (which is now part of Sunrise Senior Living) and Marriott Distribution Services, so that it could focus on hotel ownership and management. The changes were completed in 2003. Marriott International headquarters in the Bethesda area of unincorporated Montgomery County, Maryland, United States In April 1995, Marriott International acquired a 49% interest in the Ritz-Carlton Hotel Company LLC. Marriott International believed that it could increase sales and profit margins at the Ritz, a troubled chain with a significant number of properties either losing money or barely breaking even. The cost of Marriott's initial investment was estimated to be about $200 million in cash and assumed debt. The next year, Marriott spent $331 million to take

over the Ritz-Carlton Atlanta and buy a majority interest in two properties owned by William Johnson, a real estate developer who had purchased the Boston Ritz Carlton in 1983 and expanded his Ritz holdings over the next twenty years. The Ritz began expansion into the lucrative timeshare market among other new initiatives made financially possible by the deep pockets of Marriott, which also lent its own in-house expertise in certain areas. There were other benefits for Ritz-Carlton flowing from its relationship with Marriott, such as being able to take advantage of the parent company's reservation system and buying power. The partnership was solidified in 1998 when Marriott boosted its interest in Ritz-Carlton to 99 percent. By 1999 revenues from the 35 hotels it operated around the world totaled about $1.4 billion. Marriott International owned Ramada International Hotels & Resorts until its sale on September 15, 2004 to Cendant. It is the first hotel chain to serve food that is completely free of trans fats at all of its North American properties. In 2005, Marriott International and Marriott Vacation Club International comprised two of the 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush. On July 19, 2006, Marriott announced that all lodging buildings they operate in the United States and Canada would become non-smoking beginning September 2006. "The new policy includes all guest rooms, restaurants, lounges, meeting rooms, public space and employee work areas."

Vision :
To become the leading provider and facilitator of value-based luxury, leisure and business experiences across the globe.

Mission :
“To create an environment conducive and helpful to both our employees and customers, thereby encouraging our employees to work at their maximum capacity in being of service to our customers whilst providing our customers with Good Food & Good Service at a Fair Price”

MARRIOTT BRANDS Full Service Lodging • • • • • • • • Marriott Hotels & Resorts JW Marriott Hotels & Resorts Renaissance Hotels & Resorts Marriott Conference Centers Ritz-Carlton Hotels & Resorts BVLGARI Hotels & Resorts Edition Hotels & Resorts Autograph Collection Hotels & Resots Select Service Lodging • • • Courtyard by Marriott Fairfield Inn by Marriott SpringHill Suites by Marriott Extended Stay Lodging • • • • Residence Inn by Marriott TownePlace Suites by Marriott Marriott ExecuStay Marriott Executive Apartments Timeshare • • • • Marriott Vacation Club International (MVCI) Marriott Grand Residence Club The Ritz-Carlton Club The Ritz-Carlton Destination Club .

COMPETITORS Marriott’s competitors include.5 115. although both Hilton and Marriott have approximately the same number of hotels and rooms.935 501 78 72. The following table compares Marriott’s performance to its competitors in 2006. Competition in the industry is generally based on the quality of rooms.46 2. price and other factors. which also indicates that the company is more efficient in selling its rooms as compared to its competitors. Although Marriott’s global presence across 68 countries enables it to offer services to a large number of customers.4 153.5 6 Hilton Marriott Intercontinental 2. The industry is highly fragmented and no player commands more than 20 percent of the market share.61 3.4 3 82. availability of a global distribution system. it lags behind its competitors who are present in 80-100 countries. Marriott charges a higher average daily rate as compared to Hilton.100 720 182 84.4 percent (percentage of total rooms occupied) is one of the highest in the industry. The ACCOR Group. InterContinental Hotels. meeting facilities and services. Marriott enjoys a 9 percent share in the U. and 1 percent at the international level.A N. restaurants. Further.A Revenue PAR 136.S.2 191.A N. Hilton Hotels. Comparison to Competitors Accor Number of Hotels Number of Rooms (Thousands) Geographical Presence (Countries) Occupancy (Percentage) Average Daily Rate (USD) 4. which enables it to earn higher revenue per room available.99 114. attractiveness of locations.832 514 68 74.600 538 100 N.3 (Revenue Per Available Room in USD) 3 Marriott’s occupancy rate of 74. .

Hilton Hotels Corporation is one of the leading hotel and leisure companies in the world. Increasing the number of franchisees also provides the company with a stable and predictable stream of revenue. [2] While this operating structure means that the company makes less revenue per hotel. the revenues from the hotel in that region will also decline. This enables the company to earn revenues in the form of franchisee fee without incurring any additional costs to purchase real estate and construct hotels. Holiday Inn. in case the number of travelers coming to a particular region declines. the company is ensured a fixed amount (in terms of management and franchisee fee). it also means that the company has to commit less capital to develop and maintain its hotels.361 rooms in over 100 countries around the world. The revenue of a hotel company tends to fluctuate due to several reasons. the number of customers coming to that hotel notwithstanding. and Holiday Inn Express. and it now focuses on spreading its operations through franchisees. it owns only 18. which comprise the vast majority of its rooms. Hilton focused on acquiring and owning more real estate. Intercontinental Hotels Group is working on a multi-year relaunch of its powerhouse Holiday Inn and Holiday Inn Express brands.[1] It operates a diverse portfolio of brands across multiple economic segments. Out of the nearly 4. it has recently changed its growth strategy. One of the primary factors is the number of customers a hotel attracts. For instance. Thus. with 590. The company also has an additional 110. Earlier. Intercontinental Hotels Group is the largest hotel company by number of rooms. It is primarily involved in the management and development of hotels across the globe. Crowne Plaza Hotels and Resorts. However.000 Holiday Inn rooms in the pipeline. and shields it from any temporary downturn in the industry.000 hotels bearing IHG brands. However. including Intercontinental Hotels and Resorts. if the company owns the brand (and the hotel is run by a third-party). IHG makes most of its money by franchising hotels. .

Accor also runs service vouchers to over 430.000 hotels worldwide. as most of the cost will be borne by the franchisers.000 companies and institutions and 30 million users in 40 countries: Ticket Restaurant. Tesorus.[3] near Évry. Internal assestment Strengths Large Expanse of Brands Geographic Presence Global leader in hotels market More franchise means bigger OI -. Ticket Alimentaçao. Essonne. Worklife Benefits. Childcare Vouchers. the Accor hotels branch. ranging from economy to luxury. . Headquartered in Courcouronnes. Through Accor Services. Académie du Service. Eyecare Vouchers. but estimates place IHG's share of the expenses at only $30 million. EAR. operating in nearly 100 countries.[4] Accor is the European leader in hotels (Accor Hospitality) and a global leader in corporate services (Accor Services). has more than 4.they have more control that it seem Website and Social Network Focused divestiture Efforts especially with in’t companies Excellent Strategies to attract and retain employees Marriott culture retention balancing against the identities of the brands Customer Hospitality / Centric Brand Equity Weaknesses Focus on US instead of international establishments (over-reliance on US market) Over dependence on luxury brands Lack of low-cost brands Marriott being targeted by fundamentalists or extremists. Bien-Etre à la Carte. Accentiv'. Ticket Compliments. France. part of the CAC 40 index.[4] Accor is a French multinational corporation. Clean Way. Ticket Service. Accor Hospitality.The relaunch is expected to cost $1 billion dollars in total. Luncheon Vouchers.

Financial Analysis The following table shows Marriott’s past performance relative to the revenue drivers. .

94 $103.681 Occupancy Rate 72.Current ratio 1.84 1.165 535.2% 74.99 $94.832 Rooms 499.04 Historical Performance 200820072006200 5Number Properties 2.178Numb 256.26 $141.19 RevPAR Their current ratio beyond industry standard their but quick goes the ratio is less than industry standard Liquidity Ratios 2008 Show’s Marriott’s .33 0.24 0.832 560.4% Daily $131.093 2004 2005 2006 2007 2.9993.31 0.7 1.19 73.60 $102.55 1.5%Average $165.471 513.34 73.97 $114.61 $121.59 1.741 er of of 974 2.9% Rate $140.58 $153.4% 72.

where they use the shareholder’s investments when venturing to other avenues.Acquisition culture. .

84 0.84 0.Leverage ratios 2008 2007 2006 2005 Marriott is the in leader total 0.7 0.62 revenue in the lodging industry .

but has low Net Profit Margin and Profitability Ratios due to high costs (labor) and acquisitions .

and and 0.1 0.08 0.Profitability ratios 2008 2007 2006 2005 Due to the economic recession that hit the United States during the mid to late 2008 with Marriott’s strong presence in the sales profit US.5 .07 0.

30 5.Growth ratios 2008 2007 2006 2005 declined significantly. 0.37 .85 8.28 14.

EXTERNAL ASSESTMENT Opportunities Emerging Asian Travel and Tourism Markets Trend fro low-cost goods Distinction amongst hotel service offered Environmentally and Family Oriented Decrease of cost of real estate in the US Eco-tourism Threats Timeshare not popular anymore Economic Recession = lower consumer spending Boom of Economy Hotel Brand Political instability Increase of Real Estate in Asia Terrorism IFE .

48 WEIGTH RATING 0.36 0.5 3 3 2 4 3 5. Distinction amongst hotel 10. targeted by fundamentalists 0.35 0.06 0. Focused divestiture Efforts 7.36 0.4 0.6 0.03 4 2 3.05 0.05 0.14 0.05 popular 0. attract and retain employees 1.05 3 RATING 4 3 WEIGHT RATING 0.24 WEIGHTED SCORE 0.00 0. Geographic Presence 3. Lack of low-cost brands or extremists 1. Political instability 5.18 0.08 1. Terrorism Total 0. Trend fro low-cost goods 9.09 0. over-reliance on US market brands 3.08 3 0.12 4.10 .03 0. Website and Social Network 0.15 0. Decrease of cost of real estate 0.06 0. Economic Recession = lower 0.09 0. Global leader 4.24 SCORE 0.08 0.06 SCORE 0. Customer Hospitality 3.5 4 3 3.07 4. Environmentally and Family WEIGHT 0.24 2. Timeshare not TOTAL anymore consumer spending 3.16 0. Eco-tourism Threats 1.12 0.125 0. Large 2.08 WEAKNESS Oriented 5.5 2.1 0.4 0.4 0.245 0.07 0. More franchise 6. Brand Equity service offered WEIGHT RATING WEIGHTED SCORE WEIGHTED 0.05 0.15 in the ASIA 6. Boom of Economy Hotel 0.24 3.6 0.00 2.15 WEIGTHED 0.10 Brand 4.1 0.5 3 2.09 0.15 4 3 2 1 3 4 4 3.04 0. Emerging Asian Travel and 8.315 0.08 1.EFE Strengths Opportunities Expanse of Brands 1. Over dependence on luxury 0. culture retention against the Tourism Markets identities of the brands 2.1 0.4 0.

SWOT MATRIX .

6. 9. 3. 2. Emerging Asian Travel and Tourism Markets Trend goods Distinction amongst and hotel service offered Environmentally Family Oriented Decrease of cost of real estate in the USA Eco-tourism fro low-cost Large Expanse of Brands Geographic Presence Global leader More franchise Website and Social Network Focused divestiture Efforts attract and retain employees culture retention against the identities of the brands Customer Hospitality 10. 5. 5. Timeshare not popular anymore Economic Recession = lower spending 3. 5. 3. 2. Opportunities 1. 2. and ecotourism across the chain Acquire US properties to reduce debt/cost of new establishments Strategically Build hotels/resorts that would most preserve the environment Threats 1. 4. 3. 4. train and support the localities where Marriott operates in to win the hearts and minds Weaknesses 1. Brand Equity Strengths-Opportunities Acquire or establish hotels in Asia Initiate Budget and Economic Brands Divest in limited-service brands with the economy brands of other companies Differentiation of a particular brand in certain locations Apply eco-friendly efforts. Boom of Economy Hotel Brand Political instability Terrorism consumer Strength-Threat Company wide restructuring to reduce cost and increase efficiency Expand today to maintain lead and reap the rewards later on especially in Asia Provide financial assistance to franchisees to start or expand operations (preferably international) Slowly depart from time-share hotels Hire local employees by collaborating with local government units Hire. 4. 4.Strength 1. 2. 6. 7. 8. Over-reliance market Over dependence on luxury brands Lack of low-cost brands targeted fundamentalists extremists by or on US Weakness-Opportunities Expand in Asia Build high-end inns Joint ventures in other high risk countries and use the local’s name Build economy brands over cheap US land where the savings in the land are directly passed onto the consumers/customers Weaknesses-Threat Work towards expansions overseas due to economic meltdown Use relationship with employees to temporarily reduce salary to be more competitive Joint Ventures with other companies especially in new “low cost” businesses Build economy brands now .

5 External Strategic PositionAverage Points .BCG MATRIX HIGH STAR • International QUESTION MARK MARKET GROWTH CASH COW • • • LOW DOG • • Timesharing • Limited service Full service Luxury LOW HIGH MARKET SHARE Space Matrix Internal Strategic PositionAverage Points Financial Strength (FS)4.28 Competitive Advantage (CA)-1.

as well as in Africa and the Middle East. and other executives outlined the company’s global strategy.000 new hotel rooms in countries such as India and China. The Bethesda-based company will also add tens of thousands of hotel rooms to it’s U. For example.. Marriott Jr. In addition to China and India. said Stephanie Hampton. Marriott made the announcement at a day-long investors conference in Paris. according to figures from the World Travel & Tourism Council. with China expected to lead the world in tourism growth through 2016. demographics and trade.1667 Industry Strength (IS)4 Corporate level strategy: EXPANSION Marriott International announced plans to significantly expand its presence in the global marketplace with the addition of more than 30. About 400 of Marriott’s 2.800 hotels are located outside the U. the company has plans for a 274-room high-end JW Marriott in Algeria and several hotels in Qatar. Marriott will focus on building out in Asia.S.” Marriot said.S. chairman and CEO. . The global tourism industry is expected to generate more than $6 billion in revenue this year. a spokeswoman for the company. Marriott currently has 30 hotels in China. such as Courtyard by Marriott and the Ritz-Carlton. “The lodging industry is a global business and three factors dominate it: global wealth. Marriott’s global expansion will include a number of its brands. where J. and Canadian portfolio.Environmental Stability (ES)-4.W. Despite the expansion Marriott has no plans to hire additional employees in its corporate headquarters.

The service is available at Marriott.In the U. Marriott has acquired an operating and development team of experts with the Renaissance acquisition who are familiar with the market.000 of its hotels worldwide have been installed with high-speed internet access. Marriott can capitalize on synergies associated with managing New World. including New York. Marriot Strategies Marriott needs to pursue market development in Asia with new brands that extend its New World and Ramada presence. Chicago. Renaissance.C. San Francisco.000 rooms. there will be an additional 85. It should use this advantage and its superior management abilities to reach its goal of 200 hotels in the area by the year 2000. Frankfurt. All told. Fairfield Inn and SpringHill Suites hotels. representing the largest distribution of high-speed internet access in the hotel industry. and Hong Kong now offer high-speed internet access.000 to 100.. . London. Marriott now has 1. This could be a potential conflict of interest. Marriott hotels in major business travel destinations.S. but Marriott has enough experience internationally and with management that this issue should not pose too many problems. The owners of the hotels must worry about financing in terms of generating enough net operating cash flows to provide debt service and acceptable equity returns while Marriott is more focused on earning management fees. in order to gain more market share in an area with high growth potential. D. Singapore. Marriott has plans to buy and convert existing hotels to its own brands. A potential implementation problem with this strategy lies in the threat of sour relations between owners of the hotels and the Marriott (the operator).000 Marriott hotel rooms around the world by 2009 for a total of 600.000 hotels with fast Internet Marriott International is reporting that the more than 1. Tokyo. Residence Inn. the owner of which has agreed to further expansion. TownePlace Suites. and Canada. Washington. Courtyard.

if need be. Marriott new sales force strategy: Marriott International has launched a new sales structure ─ Sales Force One ─ a companywide customer-centric initiative. Recognizing the increasing complexity and variety of channels through which customers book rooms and meetings. New World exists in China and Hong Kong while Marriott holds the Ramada brand overseas and HFS owns the US rights. to these regional sales offices. these representatives have the ability to sell business for their accounts in any property within their region and. This would separate the US operations from the International. As opposed to serving only one property. to tie compensation to results. I feel that it is in Marriott's best interest to hold onto the Ramada name because it gives the company many international properties. with little or no meeting space. nationwide. while some of larger . will no longer have on-site sales associates. The strategy also encompasses the relocation of sales representatives from individual properties. The New World name should be kept the same since it is so prevalent and wellknown in the Asian market that Marriott wants to expand into. The CEO of Ramada would like Marriott to sell the rest of the rights to HFS (Diamond). aimed at simplifying the sales process for customers and penetrating untapped markets. enabling Marriott. focusing on a select group of accounts headquartered in a specific area in the market. who represents all brands and properties. Additionally. but to consider changing the name altogether to associate it more closely with the Marriott name. referred to as home offices. in which they were primarily focused on booking business for one specific property. representatives have a clearly-defined set of booking performance goals for their accounts ─ and for specific properties within the region.Another implementation issue is associated with the brand names that Marriott has acquired. and allow Marriott to further capitalize on its brand equity. theoretically. Marriott International conducted extensive research to ensure that current sales strategies resulted in efficiencies and elevated levels of sales performances. to accommodate all of the customers’ needs in a one-stop fashion. The structure of Sales Force One allows the customer to work with one primary point of contact. Many of the smaller properties.

new sales strategy and structure may undergo adjustments and modifications as it is rolled out throughout the country to ensure its success and maximum impact in the market. tying compensation to results. Providing the best products possible also means giving customers what they want. Restaurants. Managers must see that customers receive that quality in every area by not compromising on the company's high standards. reduce prices. It all starts with basic quality. But the bottom line is quality. increase advertising. By paying attention to trends and preferences among diners and travelers. must offer a variety of food items that are always fresh. or even increase services. Marriott International strongly believes it can more effectively penetrate the overall market.properties will continue to have on-site sales associates to handle larger and more complex group business. tasty. you can better serve your customers. By organizing untapped accounts into a nationwide database and structuring the proactive development of relationships with potential customers. Sales Force One is Marriott International’s solution to this challenge. change uniforms. Research indicated individual properties reported that they lacked the man-power and capital to successfully reach all of their potential markets and clients. for example. this market-driven. The focus of Sales Force One also revolves around proactively creating new leads and opportunities through organizing and penetrating untapped markets. increase portions. renovate. and aggressively pursuing under-penetrated high-value accounts. They expect it and will pay for it. . By sharing sales resources. clearly defining roles and responsibilities. You can change or enlarge menus. As Marriott International acknowledges. Regardless of your operation. The implementation of such a wide-ranging program underscores the importance for the hotel industry to address the ongoing changes in travel managers’ and meeting planners’ booking strategies. Function level strategy Provide best products possible Customers associate quality with Marriott. Sales Force One is Marriott International’s initiative to gain a competitive advantage in relationships with customers ─ along with owners and franchisees ─ allowing for a better alignment between all of Marriott International’s stakeholders. and attractively presented.

and . driveways and sidewalks should be cleaned daily or more often if needed. Managers must realize that there are always operating costs that could be reduced through more effective scheduling of hourly workers. you must try to control your expenses and carry forth the Marriott traditions of giving value to your customer along with attention to detail and attention to your people.to improve financial results than any other actions. through more competitive purchasing and through being careful about everything they spend money on. Whether it's untrained or sloppy personnel. you will help ensure that the company's other tradition that of profitable growth . Areas farthest from main buildings should receive the same attention as areas closest to main buildings. recipe cards and similar guidelines to consistently produce the best product possible.getting out of their offices to directly supervise employees and interact with customers to learn what they want and how well they are being served. employees are instructed to follow Standard Operating Procedures. the more successful that manager will be. Hands-on management The more a manager has a sense for the details which make an operation or department succeed. As one of those managers. Parking lots.and probably more -. In many cases.maintaining quality will do just as much -. When you do. Exteriors should be maintained as carefully as interiors. Operation managers learn these details best from habitually managing "on the floor" . At other times." the attention you pay to their actions is the true guarantee of a quality product being produced. Whether or not your employees must "follow the book. positive influence or your people and customers through your willingness to Set The Pace. managers must rely on an employee's own style and initiative to do the job right. Keep units clean and attractive Clean operations start with people who work clean. You exert a powerful. managers are always looking for the why behind an unclean situation so they can eliminate its cause. Staff managers stay in touch with the operations and people they support in order to understand and meet their needs. improper or inadequate equipment. or an unorganized work environment. A manager's job is to deliver an outstanding product at a fair price and make money doing it.will always continue. not just clean up the mess. Be Involved In Details.

an internal.Follow Through.to show a personal interest in your people is an investment that will pay high dividends in building teamwork and increasing productivity. In the early years.in your own style . Marriott managers constantly focus on results by continuously reevaluating and challenging what they and their people are doing. Marriott's top executives and managers make every effort to communicate through property visits. founder J. however. still need to feel that they are important and that somebody cares. rap sessions. Willard Marriott knew most of his employees by name. and regularly scheduled meetings. . the tradition of top management knowing all employees has become impossibility. their manager. Yet. decentralized means for all employees to express problems and have them resolved in a timely manner. That "somebody" is you. memos. Even today. The time you take . Concern for employees Marriott's concern for employees starts with its "Guarantee of Fair Treatment" policy. as the company has become larger and larger. Employees.

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