Competitive Analysis: Sheraton Hotel And Resorts Worldwide

Dan Cohrs, the vice president of project finance at Marriott Corporation, is preparing his annual recommendations for the hurdle rates for each of Marriott’s three divisions: lodging, contract services, and restaurants. However, this is a complicated process because finding beta, cost of debt, and cost of equity in order to find weighted average cost of capital, or WACC, must be calculated using proxy firms and divisional data.

Marriott’s multinational operations represents an excellent track record on organizational diversity and inclusion. Marriott’s owners want more diversity because they are constantly serving a diverse group of consumers and they want a diversified presence in every Marriott location around the world (Fairchild, 2014). According to Fairchild (2014), in order to even qualify to franchise out a hotel, one must put down 40% of the total cost of the project and Marriott knows there is a shortage on minorities and women with this kind of access to capital. However, as the world develops more women and minorities become more educated, they are starting to gain access to that capital little by little.

Highly important to leverage on internationally renowned ‘CBRE Hotels’ and launch a marketing campaigns (press-releases) focused around CBRE’s newly introduced hotel division (regardless of how the service line is structured internally)

Starting as a domestic Canadian company in 1960, Four Seasons Hotels and Resorts have built an internationally brand not only through exceptional luxury in beautiful locations all around the world, but through understanding that while each of their properties provides guests an “unique experience the success of the company is guaranteed.” (www.wearedevelopment.com). Four Seasons concept was to create a chain of luxury hotels in which excellence in service and amenities was literally present and linear.

Our team chose the hotel industry in the United States for our economic analysis. The hotel business has existed since the earliest times, and has influenced the development of the economy since the founding of this country.

Accor has extensive brand portfolio where 240,000 hoteliers with same shared passion for welcoming, located in 95 countries, in 4,100 addresses and 570,000 rooms ("Accor Hotels: company profile", 2016). The luxury brands under Accor Hotels are Raffles, Fairmont, Sofitel, Onefinestay, Mgallery, Grand Mercure, The Sebel, Pullman, Swissotel, Novotel, Suite Novotel, Mercure, Mama Shelter, Adagio/ Adagio Access and economy and economy brands are IBIS, IBIS Styles, IBIS Budget, and Hotel F1("Accor", 2016).

. Hospitality is one of the largest growing industries in the world. Past two decade word has witnessed booming growth of hospitality industry. Three are different category of service offers to different Clients like luxury to budget etc. This sector play very important role in countries GDP growth and employment growth. There are lot issues facing this industry these are different sustainable issues like social, economical and environmental issues which increase coast .another one is increasing operating cost and labor cost problem one of the major problem facing nowadays because shortage of skilled labors, highest staff turnover etc. another problem is increasing competition many companies force to cut down their prices

The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future.

Barriers to get into the hotel industry are huge, which make the hotel industry not look appealing to new entrants.

Radisson Blu hotels have made a name for themselves in the hospitality industry as well as the market by globalizing their business in several continents such as Europe and Asia, having 380 hotels over the world and having plans of several other hotel locations to be opened as mentioned on their official web page (https://www.radissonblu.com/en/about-blu). Radisson Blu offers it 's customers luxury and high end services giving it a competitive advantage against it 's competitors, which often attracts customers that are in the top tier of the income chart such as business officials and

Although they are in the same single industry, and supplying the same service, the two companies are using very different Business Unit Strategies, which is defined as the strategy a business chooses for each separate organizational entity within the base business (Parnell, 2008). Hampton Inn should not use the same competitive business strategy that Motel 6 uses since it would be a large departure from the image Hampton Inn has worked hard to attain. Hampton Inn has spent much time and money developing its brand, and making sure the company delivers a consistent customer experience, no matter which Hampton Inn a customer chooses to stay at. By automating such of its maintenance and housekeeping functions the company has been able to become

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.

The following report was derived from the primary use of secondary sources, in addition to telephone contact with hotel representatives. Secondary sources included research from the Internet, industry books, company marketing communications, trade and general business newspapers and magazines, among others. Through all the sources, relevant data and information was extracted into the report's appendices. After individual analysis and group discussion, the following report was devised. The mandate of this report is to provide a macro examination of the luxury hotel industry and specifically the future outlook of Four Seasons Hotel and Resorts, Inc.

The company is facing fierce competition both as accommodation operators and as a franchiser. US housing market is highly crowded with several key players. These operators were originally a private management company, but also related to several large national chains owning and managing their own hotels, as well as their own brand franchise. (Corporate Profile - SWOT Analysis, 2015)

Marriott International within their respective market segments are one of the largest hotel groups globally.