Marriott Hotel Case Study

This is a research report of a field trip carried out in the city of Brisbane to conduct a sustainability audit on tourism at the Brisbane River to evaluate the current practices employed towards achieving tourism sustainability, leisure and event management. The report also highlights areas that need improvement in terms of management and sustainability in order to boost tourism.

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 sales grew up by 24% and its return on equity stood at 22% in the year 1987, the sales and earnings per share has doubled over the previous year as stated in the case study.

The Marriott Corporation (MC), had seen a long, successful reign in the hospitality industry until the late 1980s. An economic downturn and the 1990 real estate crash resulted in MC owning newly developed hotel properties with no potential buyers in sight and a mound of debt. During the late 1980s, MC had promised in their annual reports to sell off some of their hotel properties and reduce their burden of debt. However, the company made little progress toward fulfilling that promise. During 1992, MC realized that financial results were only slightly up from the previous year and their ability to raise funds in the capital market was severely limited. MC was left with little choice, as they had to

The hotel has acquired various initiatives for sustainability. Some of these are waste reduction, reusing and recycling, constant monitoring of gas, oil and electricity usage etc.

Making tourism more sustainable is not just about controlling and managing the negative impacts of the industry. Tourism is in a very special position to benefit local communities, economically and socially, and to raise awareness and support for conservation of the environment.

Tourism plays a significant role in sustainable development and the United Nations Environment Programme (UNEP) and the World Tourism Organization (WTO) wish to encourage all countries to make sure that their policies and actions for its development and management fully embrace the principles of sustainability. Likewise, policies to promote sustainable development should take full account of the opportunities offered by tourism. Various international conventions and declarations have put forward principles and guidelines for sustainable tourism and the importance of tourism and its sustainability was underlined at the 2002 World Summit on Sustainable Development. Many countries declare that they are pursuing, or wish to pursue, policies for ‘sustainable tourism’. Despite this interest, there remains a degree of uncertainty over the scope and priorities for making tourism more sustainable and only partial appreciation of how to put this into practice (Making Tourism More Sustainable, 2005).

Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base, ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging, contract services, and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive and ever-evolving market of glamorous destinations and convenient services. In order to remain relevant in a highly-competitive environment, Marriott must strike that successful balance of minimizing costs, and gaining and effectively

Now, in 2008, this issue is of even more importance, and less of a device to attract business from the environmentally-aware demographic.Guest involvement in a more green hotel environment has become more apparent with a recent survey in the New York Times found that 16 percent of hotel guests chose where they will stay based on the environmentally-friendly options available to them and the practices of the hotel. A 2007, New York Times article titled, “Enjoy Your Green Stay,” states that green options for hotels have become widespread so quickly because of the rising cost of energy. It should be no coincidence that

The vision/mission behind the Good Hotel concept is to maintain its identity as a “hotel with a conscience” – encompassing a positive attitude, environmental sensitive, and philanthropy. The intent of the vision is to inspire the “good in us all”. (Pearce, 2012, p. 10-1, 10-2)

• What is the cost of capital for Marriott’s as a whole at the prevailing capital structure vs. at the target capital structure.

Sustainability is important to maintain the way humans and nature are treated to have healthy organisms and reproduction. Unfortunately, nature and animals are not treated the way they should be. Many livestock are forced reproduced and kept in unlivable conditions. Plants are overwatered or left in drought and given GMO’s to survive. There are many different ways we can change our ways and allow organisms to survive naturally without the use of pesticides and animals to live happy. If a hotel practiced sustainable practices they would be very well known and enjoyed in the community.

Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement.  We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase

Many hotels utilize sustainability as a strategy setting for operations, and as a critical success factor (Boerner, 2010). A company become more sustainable by evaluating the positive and negative environmental, economic, and socio cultural impacts on hospitality industry and helps the operation to be in profit and minimize waste or harmful aspects. Environmental certification program for hotels Provides technical guidance. Participating facilities area warded between 1and5 Green Keys depending on loyalty to criteria (LRA Worldwide,

This study aims to provide the reader with an analysis of the Intercontinental Hotel Group (IHG) global operations. In order to do so the author will firstly provide industry analysis of the hotel industry. The industry analysis will include, the identification of, key dynamics of the industry, the major players , the drivers of change in the industry, the direction the industry is moving in along with identifying what is required in industry to gain competitive advantage. The author will then proceed to discuss the chosen organisation, that Intercontinental hotels group. The author will provide Company Analysis of the business which will consist of a discussion on the Business Model ,the Revenue Model ,the USP, the company’s position in the industry and the future strategy of the company. The author will conclude with a discussion and draw recommendations from findings