Marriott

Bethesda, Maryland is the headquarters of Marriott International Incorporate. This unique organization transpired from a root beer stand in 1927 into a world-renowned hospitality hotel chain in 1957. Information provided will focus on the evolution of the root beer stand into the Marriott International Incorporate vast hospitality empire. Today, the Marriott hospitality industry has 5,756 hotels with 30 brands in 118 countries with 1.1 million rooms. Additionally, the Marriott generated $14 billion in revenue during 2016 and had over 85 million combined loyalty members between the Marriott and Starwood Preferred Guest reward programs. Furthermore, Marriott partnered with Universal Music Group to bring their rewards member’s additional

Marriott Corporation began from root bear stand, and developed to be the leading supplier of food services and leading logging company in the U.S. The leading parts of the business were lodging, contract services, and restaurants. Their intentions regarding the business strategy was to focus on employees and customer satisfaction. In that way, they can remain the leading growth company. The financial strategies used were:

Manage rather than own hotel assets In 1987, Marriott developed more than $1 billion worth of hotel properties, making it one of the 10 largest commercial real estate developers in the United States. With a fully integrated development process, Marriott identified markets, created development plans, designed projects, and evaluated potential profitability. After development, the company sold the hotel assets to limited partners while retaining operating control as the general partner under a long-term management contract. Management fees typically equaled 3% of revenues plus 20% of the profits before

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

a) It is advisable to manage than to own as it is consistent with the growth strategy. In this manner, mar riot can attract additional capital that gives it an opportunity to even invest more in the future, share the risks with limited partners. The partnership can be of great benefit as it is a good way of saving on taxes.

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

Since its grand opening in September 1989 and prior to the debut of the Sobieski and the Bristol in Warsaw’s market, the Marriott was the only hotel in Poland operated by a Western management team and successfully captured the high-end hotel demand (mostly due to business travelers) generated by the Balcerowicz Plan which “sought to end hyperinflation and balance the national budget” by freeing the prices of most consumer goods, establishing caps for annual increases in state-sector employees’ wages, and by making the local currency (Zloty) convertible within Poland’s borders. Due to such an influx of tourists and Marriott’s monopoly position attained at the time, the company was able to charge prices comparable to Western standards for deluxe hotels and still maintain occupancy rates of close to 70%. Marriott’s competition at this point in time was basically Orbis, the country’s antiquated hotel and travel monopoly that ran most of Poland’s tourist hotels. Notwithstanding this, “most Orbis facilities were sparsely decorated and in poor repair”, and Orbis’ employees, “whose jobs and salaries were guaranteed by the Polish government, were renowned for providing substantial service and

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.

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.

Amber Inn & Suite, Inc. was built in 1979 and is composed of 250 hotels chain empire of which each consisting an average of 120 exquisite guest rooms or suite units. The profits are $422.6 million and deficits of $15.7 million. The Amber Inns & Suite have total of 30,000 rooms. The Company’s objective is to cater mainly to professional clienteles that are traveling with fabulous guest rooms at an economical price. Amber Inn & Suites, Inc. is located in areas amid ten western and Rocky Mountain States with two hundred fifty numerous property hotel chains. In most cases, each property is made up of one hundred twenty single guest rooms or suite units. Amber Inn & Suites Inc. positions its properties on prime areas such as major

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:

Maverick Lodging is a hotel management company that manages the day-to-day operations of third party franchisees of the Marriott Corporation. The company has recently implemented a balanced scorecard in an effort to align company strategy, structure, performance measurements, and incentives. The organization strategy involves growth in revenue and customer base with the use of differentiation. Issues with the current scorecard and its measures have been identified. Alternative solutions have been researched. A recommended course of action is presented that will allow Maverick Lodging to achieve its strategic goals and objectives.

Marriott has done a great job of participating in a diversified collection of charitable initiatives, events, and organizations. Their main area of focus has been the environment because that is where their business has the most impact. They have given and raised money for the preservation of 1.4 million acres of rainforest in the Juma Reserve in Brazil, glad to aid in the conservation effort that can save species and improve the global climate (http://www.marriott.com). Additionally, Marriot “launched “Nobility of Nature,” a $500,000 commitment to help protect the source of fresh water for more than 2 million people in Asia” (http://www.marriott.com).

The four components of Marriott's financial strategy are consistent with its growth objective. Managing hotel assets multiplied the total worth of hotels than otherwise owned by it, thus increased EPS. Optimizing the use of debt in the capital structure, based on a

As a primary worldwide provider of travel-related services such as rentals, lodging, conference facilities, and timeshare exchange, Wyndham Worldwide has overcome inconsistent branding strategy, unstable mergers, and acquisitions, as well as the 2008 economic recession to retain its top position in the industry. An internal and external analysis of the company, opportunities, and threats faced by the firm, its competitive advantage, and a strategic focus reveal the issues that need to be addressed henceforth for it to remain relevant in an increasingly competitive global market. The paper provides a problem statement, alternatives, and recommendations that Wyndham Worldwide can engage.