This report will provide information obtained through ratio analysis, regarding the profitability , liquidity and financial stability of Starwood hotel and resort worldwide inc. and Marriott group of hotels for the years 2011-2013 and compare both the hotels. Starwood hotel and resort worldwide inc. founded 1991, is an american hotel company with more than 1,200 properties in 100 countries and 180,400 employees at its owned and managed properties. In 2013 it grew same store worldwide RevPAR by 5% in constant dollar. (Starwood hotels company overview 2013) Recognised as one of the world’s largest hotel and leisure companies, Starwood Hotels & Resorts Worldwide, Inc. is composed of nine internationally renowned brands and the …show more content…
It had $12 billion in annual revenue in 2012 with more than 3,700 locations in 73 countries and territories worldwide. Its brand are : The Ritz-Carlton Bvlgari Hotels & Resorts ,JW Marriott Hotels, Edition, Autograph Collection ,Renaissance Hotels ,AC Hotels,Marriott Hotels & Resorts ,Gaylord Hotels ,Courtyard by Marriott ,SpringHill Suites ,Fairfield Inn & Suites ,Residence Inn by Marriott Towne Place Suites ,Marriott Executive Apartments ,Marriott Vacation Club ,Grand Residences by Marriott ,The Ritz-Carlton Destination Club. (Marriott international 2012) This report will pay particular attention to the earning power, liquidity and credit management, inventory management and debt management, and will highlight major strength and weakness while offering some explanation for observed changes. The report will comment on the prospects of the company and make recommendation that would improve Starwood and Marriott performance. This report will explain how cash flow statement could enhance analysis. STARWOOD VS. MARRIOTT REVIEW OF FINANCIAL / OPERATING RESULTS AND FINANCIAL POSITION One of the most effective ways to compare two businesses is to perform a ratio analysis on each company’s financial statements. A ratio analysis looks at various numbers in the financial statements such as net profit or total expenses to arrive at a relationship between each number. Using ratio to compare two business gives us a
Ratio analysis is a tool brought by individuals used to evaluate analysis of information in the financial statements of a business. The ratio analysis forms an essential part of the financial analysis which is a vital part in the business planning. There are 3 different ways of assessing businesses performance and these are: solvency, profitability and performance. Ratio analysis assists managers to work out the production of the company by figuring the profitability ratios. Also, the management can evaluate their revenues to check if their productivity. Thus, probability ratios are helpful to the company in evaluating its performance based on current earning. By measuring the solvency ratio, the companies are able to keep an
Hotels (35% of sales)—Marriott Hotels was one of the world's leading and most successful operators
They way the investors would benefit from our ratio tables, is by looking at and comparing Profitability ratios by comparing Profit margins, return on equity or by comparing solvency ratios such as debt ratio and equity ratios with the other companies being presented in our research analysis. For more detailed information they can check the balance sheets and income statements that are being portrayed in the report and look at the progress of the companies within the last four years. Therefore, helping make their decisions easier and faster.
There is a essential use and limitations of financial ratio analysis, One must keep in mind the following issues when using financial ratios: One of the most important reasons for using financial ratio analysis is comparability and for this, a reference point is required. Usually, financial ratios are compared to historical ratios of the business itself, competitor’s financial ratios or the overall ratios of the industry in question. Performance may be adjudged as against organizational goals or forecasts. A number of ratios must be analyzed together to get a true and reliable picture of the financial performance of the business. Relying on each ratio
Isabella Felix Stele AP Lang 03/15/24. Madeleine Albright delivered a commencement speech to a graduating class at an all-girl university in Massachusetts called Mount Holyoke College to inspire and motivate these young women to continue to push forward which shows them they as women can accomplish many achievements in their lives. In this commencement speech, Albright uses induction, compare and contrast, example, and process analysis to explain to the audience how to continue on in life with hope and motivation to thrive on their own, even when the odds are against them. Albright uses compare and contrast between lines 37-44 by saying we have seen many advancements in our status and women all over the world are claiming their rightfully
Since its foundation in 1927 Marriott Corporation grew into one of the leading lodging and food services in the US. With three major business lines: lodging, contract services and related business, Marriott has the intention to remain a premier growth company. To achieve this goal the corporation’s strategy is to develop aggressively appropriate opportunities within their business lines. Marriott would like to be the preferred employer, the preferred provider and the most profitable company in each of the operating areas. The financial strategy includes four key elements:
Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.
Premier Inn is the name of a British Budget Hotel chain running the largest hotel brand in the United Kingdom. Hotel chain is running 690 hotels with more than 50,000 rooms built in different countries. The hotel chain listed in London Stock Exchange in 1987 with brand name of “Whitebread” and started trading of its services under the chain of “Travel Inn” in order to compete with travellodges. Business operation of Premier Inn is not only limited to city centers but also covering suburbs and airports locations Hotel chain is following the expansion and acquisition policies since the time of its inception and acquired hotel chain named as Premier Lodge in 2004 (Whitebread, 2013). This acquisition increased the number of hotels and the profit as well. Premier Lodge was running with 141 hotels and contributed 70% of the total profit of “Whitebread”. Target market of the hotel chain is not only the leisure visitors and families but also the world business class seeking countless business and travel facilities. Award winning business services, comfortable sleep on king size beds and delicious breakfast are further adding value for the hotel chain while elevating the status of Premier Inn to be the first choice of families and business class to take their stay decisions at Premier Inn. The ambitious and high paced profitable progress of the Hotel chain is opening new ways of expansion and development. The hotel chain is therefore, planning to increase around 45% i.e. 75,000 rooms
Intercontinental Hotels Group – It is British company and the most profitable among the four industry leaders. It owns, manages, leases and franchises approximately 3,741 hotels in approximately 100 countries as of 2006. It ranks number one in gross margins (54%), operating margins (24.7%) and earnings per share ($2.10) even if it’s smallest in the strategic group. It appears to be the cost leader among the big four companies in the industry.
Using SWOT analysis is a good way to analyze the product make up of Marriott International. One of the main strengths for this company is the brand name. Marriott International is a strong brand name and is known for their mid to higher end hotels. All of the nicer hotels bear the Marriott name while the lower end hotels have only the specific hotel name on them (Pashia, 2012). Marriott International has many different brands including: the Ritz-Carlton, Renaissance hotels, AC hotels, JW Marriott, Bulgari hotels and resorts, Edition, Autograph collection, Marriott hotels and resorts, Courtyard by Marriott etc. (Ersayar, 2012). Because of Marriott’s diversified brands and all types of hotels, from luxury and high end to the lower end, it has a strong market presence. Good employee retention is also a strength of Marriott International. The total workforce for this company is over 150,000 with a good promotion program from within (Pashia, 2012).
While, Marriott International Inc. has hotels in nearly 90 countries, and 19 different brands; As well as a reward program with nearly 55 million members all over the world, and is still expanding. In Marriott International’s 2015 annual report, is a message to the shareholders. In its message the company’s future growth is stressed. In fact, Starwood Hotels & Resorts Worldwide are acquisitions of Marriott International and are currently being incorporated. Additionally, Hotels in Africa, Asia, Europe, and the U.S. are currently under new development or renovation; although, 77% of Marriott International’s rooms were in North America at the end of 2015 (as can be seen in figure 2 on page 7). Also, the company expressed its concerns on environmental sustainability, and its goals to become more environmentally conscientious. Furthermore, technological improvements thru ought the many hotels, and reward’s program were discussed. Such as virtual reality room service, improved Wi-Fi, mobile check in, and Apple Pay. This message gave shareholders information on the company’s financial standing, and ultimately a guide on how the company plans to boost revenue by appealing to customer wants and needs.
The report focused particularly on the following hotel chain Hilton Worldwide. Hilton legacy began in 1925, it was founded by Conrad N. Hilton. The first hotel was built in Texas and had 40 rooms; today Hilton is one of the most respected brands in the world. The company owns, manages or franchises a hotel group of some of the most famous and highly regarded hospitality brands worldwide, including Hilton, Conrad Hotels & Resorts, Double Tree by Hilton, Embassy Suites Hotels, Hampton, Hilton Grant Vacations, Homewood Suites by Hilton and the Waldorf Astoria Hotels & Resorts. With 4000 hotels and 650,000 rooms in 90 countries Hilton Worldwide is one of the world’s leading hotel. (Hilton Worldwide, 2013)
Ratio analysis is generally used by the company to provide some information on how the company has performed during that year, so that the parties involved including shareholders, lenders, investors, government and other users could make some analysis before making any further decision towards that particular company. As mentioned by Gibson (1982a cited in British Accounting Review, 2002 pg. 290) where he believes that the use of ratio analysis is such an effective tool to evaluate the company’s finance, and to predict its future financial state. Ratios are simply divided in several categories; these are the profitability, liquidity, efficiency and gearing.
Hilton Hotel is founded by Conrad Hilton, they started their operation since 1919 and since then, they become one of the well-respected premier hospitality organizations with diverse employees worldwide. Currently, they have more than 4,600 owned and franchised hotels and resort chain in 100 countries. It has more than 200,000 rooms to accommodate guests from different parts of the world. It has more than 400,000 employees and team members to answers the needs of their guests (Hiltonhotelworldwide.com, 2016). In most of their branches their organizational structure is simple, with managers and supervisors from a different department, including admin, marketing, finance, human resource, concierge, food and beverages, housekeeping and etc.
In the past couple years, there has been a growing phenomenon in the world of children's literature, this phenomenon is Harry Potter. J.K. Rowlings series of novels about a young wizard and his years at "Hogwarts School of Wizarding and Witchcraft," has become one of the most successful children's book series of all time. Before reading any of the now four novels, one may find it hard to believe that a children's novel may be so entertaining. But once one starts reading any of the four books, it is plain to see why these books are so popular.