Assessment 1

Parent Entity Selection: Marriott International

Subsidiary Selected: Starwood Hotels & Resorts Worldwide LLC

Marriot International is the worlds largest hotel chain with 30 hotel brands, more than

5 800 properties and 1.1 million room capacity and with presence in more than 110 countries

across the globe. One of the most important factors in today’s hospitality industry is guest

experience and choice (Marriott International, 2022). By having such numerous brands each

bringing its unique attributes to the table, the overall Marriot chain becomes a global

signature in the hospitality industry. In this paper, we examine the hospitality industry where

both Marriot and Starwood Hotel and Resorts Worldwide LLC (Starwood) operate as a

parent and subsidiary, describe the jurisdictions they operate and give the rationale for their

selection.

Industry Analysis

The hospitality industry is a complex global sector encompassing a wide range of

services including travel, accommodation, and leisure. In the aftermath of the COVID-19

pandemic, the industry has experienced significant transformations as it adjusts to the

changing consumer behaviors and health and safety concerns. Key components of the

industry include hotels, resorts, restaurants, travel agencies, and related services. Earlier in

the 20th century, the industry experienced robust growth. This was driven by increasing

disposable incomes, globalisation and a surge in international tourism. Nevertheless, the 2008

economic meltdown posed challenges, leading to shifts in consumer spending and travel

patterns. As time went on, technological advancements, such as online booking platforms and

mobile applications, have reshaped the way businesses operate and customers engage with

services (Shapoval et al., 2021).

 Currently, experiential travel and sustainability have become central themes, with

seeking eco-friendly accommodations and unique, personalized experiences. The industry is

characterized by intense competition, with major players like Marriott International

continuously travelers innovating to meet evolving consumer expectations. The rise of short-

term rental platforms and the integration of smart technologies further reflect the industry's

dynamic nature. Regulatory frameworks and cultural impacts continue to impact operations

across diverse jurisdictions, contributing to the industry's complexity. Ideally, hospitality

industry in 2023 is navigating a landscape shaped by technological disruptions, changing

consumer preferences, and a renewed focus on sustainability and safety (Serve 360 Report,

2022).

Jurisdiction

Marriott Hotels are located in more than 110 countries globally. This global presence

is classified into regions which include Africa, Asia, Australia and Pacific, Central America

and Caribbean, Europe, Middle East, North America and South America. The following is a

summary of the number of hotels in each region.

Region Countries Number Of

Hotels

Africa Algiers, Constantine, Cairo, Hurghada, Ghana, 15

Morocco, Nigeria, Rwanda, South Africa, Tunisia

Asia Armenia, Azerbaijan, Georgia, India, Indonesia, 115

Japan, Mainland China and Hong Kong, Macau,

Taiwan, Malaysia, Nepal, Pakistan, Philippines,

Singapore, South Korea, Sri Lanka, Thailand and

Vietnam
 Australia And Australia, Fiji 5

Pacific

Central America Aruba, Cayman Island, Costa Rica, Curacao, 23

and Caribbean Dominican Republic, Haiti, Mexico, Panama,

Puerto Rico, St Kitts and Nevis, Venezuela

Europe Italy,Macedonia,Malta, Netherlands, 70

Poland,Portugal,Spain,Switzerland,Turkey,United

Kingdom,

Middle East Jordan,Qatar,Saudi Arabia,United Arab Emirates 14

North America United States, 336

South America Argentina, Bolivia, Brazil, Chile, Colombia and 10

Guyana (Marriott Hotel, 2019).

This global presence includes the Starwood subsidiary. Analytically, North America

accounts for an estimated 57% of the total hotels run by the brand. This makes it a critical

determinant of the hotel’s success. Also, Asian market also contributes hugely to the

dominance of the Marriott chain globally. The trends in these two key markets define the

strategic actions undertaken by the top leadership to steer the company forward.
 Global Presence
2%3%
20%

1%
4%
57%
12%
2%

Africa Asia
Australia And Pacific Central America and Caribbean
Europe Middle East
North America South America

Subsidiary: Starwood Hotels and Resorts Worldwide LLC

This brand is dominant in the leisure market and has presence in t lest 100 countries.

It has more than 992 hotels, a room capacity of 285 000 and is well known for its customer

loyalty program. The customers of this subsidiary are loyal to its key brands such as Luxury

Collection, Aloft, Four Points and Element (Dun and Bradstreet, 2023).

The hospitality industry is characterised with intense competition. Customer

experience is becoming a key trend and operators are increasingly focused on doing more that

what the customer requires in the journey towards creating long-lasting memories for the

customer (Koo, Yu, & Han, 2020). The reason for this is that going over and above customer

requirements is a key source of loyalty and repeat business. As a strategic focuses towards

retaining the current market share gain momentum, while looking for ways to increase it,

customer and brand loyalty become very important (Koo, Yu, & Han, 2020).

Since Marriott hotels has a global dominance as well as the Starwood Hotels and Resorts

Worldwide LLC subsidiary. As a brand that has existed for long and mastered the art of the

business and is now focused on further expanding the brand portfolio, even after attaining the
largest chain status globally. Working with brands such as Starwood would be unavoidable to

expand the market and explore synergy benefits.

 References

Dun and Bradstreet. (2023). Starwood Hotels & Resorts Worldwide, LLC. Retrieved from

https://www.dnb.com/business-directory/company-profiles.starwood_

Koo, B., Yu, J., & Han, H. (2020). The role of loyalty programs in boosting hotel guest

loyalty: Impact of switching barriers. International Journal of Hospitality

Management, 84, 102328. doi:10.1016/j.ijhm.2019.102328

Marriott Hotel. (2019, August 1). Marriott locations worldwide. Retrieved from

https://marriott-hotels.marriott.com/locations/

Marriott International. (2022). 2022 annual report. Retrieved from https://marriott.gcs-

web.com/static-files/b82978a6-9d28-4e38-9855-fc4ae2cebe11

Serve 360 Report. (2022). Environmental, Social, and Governance Progress. Retrieved from

https://serve360.marriott.com/wp-content/uploads/2022/10/Marriott-2022-Serve-360-

ESG-Report-accessible_F.pdf

Shapoval, V., Hägglund, P., Pizam, A., Abraham, V., Carlbäck, M., Nygren, T., &

Smith, R. M. (2021). The COVID-19 pandemic effects on the hospitality industry

using social systems theory: A multi-country comparison. International Journal of

Hospitality Management, 94, 102813. doi:10.1016/j.ijhm.2020.102813