Essay on Marriott International

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

4.) Employee Compliance to the Code: The entire staff is expected to be compliant to the rules and regulations set forth by Company X. Reported accounts of non-compliance will lead to an internal investigation of both the accuser as well as the accused; disciplinary action will necessarily follow if company rules and regulations have not been adhered to or improperly dismissed. Granted that there are many different situations that could arise in which one would believe unethical behavior or misconduct transpired; therefore, it is suggested that first the issue in question is evaluated before presenting to one’s direct

They upgrading a hotel first upgraded employee facilities. When a survey at London hotel showed dissatisfaction with workers’ areas, installed new floors, lockers, and showers within three months. Four-seasons needed to get it down to the front line: clerks, bell-staff, bartenders, waiters, cooks, housekeepers, and dishwashers, the lowest-paid and in most companies the least-motivated people, but the ones who would make or break a five-star service reputation. Four-seasons needs employees able and willing to respond on their own to whatever comes up, employees who can spot, solve, and even anticipate problems. That means delegating authority as well as responsibility. Four-seasons pay attention on how to treat employees and make them feel confortable when they work in hotel because employees could bring positive attitude towards customers if they in good mood.

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

The idea of repurchasing shares was no stranger to Bill Marriott by January 1980. Almost five million shares of common stock had been repurchased on the open market by Marriott Corporation during 1979 at a total cost of $74 million and an average price of $15.16 in the belief that they were undervalued—a belief that still was not fully reflected in the market price. At $19 5/8, the stock was selling at only six times cash flow per share; and its price/earnings ratio of nine was a far cry from historical multiples as high as fifty times as recently as 1973. Its low price seemed to offer once again an obvious opportunity to benefit shareholders. However,

The Hotel Monaco also trains their staff to uphold the highest standards of ethics and laws that govern the hospitality industry. This way the hotel staff can confidently provide the hotel’s guest with the highest standard of comfort by providing the on-demand service that the guest have come to expect, the safety of knowing that the hotel is being kept in the highest standards of living, knowing

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

The following case analysis portraits the use of capital asset pricing model to compute the weighted average cost of capital for Marriott and each of its divisions. The flow of events below is following a string of different evaluations, each of which is assessed separately.

Hyatt’s value statement is “to adhere to a set of core values such as, mutual respect, intellectual honesty and integrity, humility, fun, creativity, and innovation to characterize the culture of the company” (Hyatt, 2013).  Hyatt provides its consumers with an intangible good, which is customer service. Hyatt values it personnel as an essential factor in achieving its strategic plan of authentic hospitality. Hyatt’s successful approach to empowering its personnel is its “thoughtful approach to growth” and furthermore, emphasizes its strategy. (Hyatt, 2013).

The main objective of the company is not only to attract but also to retain staff who are interested to work in the hotel business for the five-star level of high service, taking into account the wishes of clients, and which offers an innovative, dynamic environment and reflects the culture of the local country. To achieve this, Hyatt strives to be a company listening to well-informed and concerned people. Hyatt provides plenty of opportunities at all levels for their employees, which are accompanied by numerous development

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

Marriot use the Weighted Average Cost of Capital to estimate the cost of capital for the corporation as a whole and for each division, and the hurdle rate is updated annually.(WACC = (1-Tc) * (D/A) * R[D] + (E/A) * R[E])

The Hotel is situated in the bustling East Cork market town of Midleton, located just 14 miles (15 mins drive)

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.

There are several organizations that have competitive advantages in the industry. However, one familiar organization that has maintained its competitive advantage in its industry is the Ritz-Carlton hotel. Founded in 1983 and headquartered in Chevy Chase, Maryland, United States of America, Ritz-Carlton is regarded as one of the best in the hotel industry and has received several accolades for great customer services (Ritz-Carlton Hotels & Resorts, n.d.). Nevertheless, to fully understand its competitive advantage in the industry, it is essential to analyze its modus operandi. The Ritz-Carlton hotel management understands the value of employees; so ultimately investing in