Marriott's has diligently evaluated various international locations in the global market place for hotel accommodations and have strategically entered locations with a high potential for growth in leisure and business travel. Marriott's key moves into the growing Chinese and Indian market, coupled with some "green" initiatives and partnerships in other fast growing markets in Latin and South America prove that Marriott intends to continue to grow where their analysis and evaluation tells them there is opportunity. However, Marriott's opportunity is not just focused on the bottom line. Their growth targets are geared toward "serving people first" and moving into markets where there is opportunity to service at levels previously unmet.
Marriott's customer service and their employee benefits have generated loyalty from employees and customers alike. The ability to provide a workplace with opportunities for employees both domestically and internationally provide the platform for a high level of customer service and employee work ethic and attitude. This directly impacts customer satisfaction as employees cater to the needs of individual customers and on a customer-by-customer basis.
Overall, the recent strategic moves and the announced plans to move into China and India prove that Marriott is a fast mover into markets where opportunity to serve exists. The increasing number of travelers in the global marketplace where Marriott is growing will reap benefits on this company for years-to-come so long as Marriott and their staff cater to the needs of those travelers.
As the economy recovers from the most recent downturn, expect the value of Marriott International to grow. This is a proven company and one that "holds on" to customers once they have them inside their doors.
In retrospect, six months ago would have been an opportune time to invest in Marriott International. Today, even with the stock price climbing over $40/share of common stock, Marriott is a solid investment. I would expect to continue to see the price increase and reach somewhere around $45/share over the next year, providing the economy continues to rebound and the markets in China and India sustain their current status.
Friday, December 3, 2010
Final Stock Update
December '02: Marriott Closed the day at $40.52, the highest the stock has reached since the economic downturn. Marriott's made some sound strategic moves into growing markets and it has impacted the recent stock performance. Hopefully, these increases are signs of things to come and are evident of an improving economy and travel industry.
Thursday, December 2, 2010
The most interesting information I learned related to Marriott International is related to the company's efforts to improve humanity throughout the U.S. and the world. Of course, all company's try to show humanitarian efforts to gain public attention and will provide financial resources to some worldly causes. Marriott in my opinion has gone above and beyond simply showing financial support for humanitarian efforts. Don't get me wrong here, the financial support is imperative to many causes, but providing human capital for relief efforts is equally important.
Volunteer Marriott employees have assisted with Habitat for Humanity in building thousands of homes in 15 different countries. The piece that really hits home with me though is the efforts of Marriott in Doha, Qatar. My family being heavily involved in international adoption efforts hold orphans very dear to our heart and seek ways to serve and help these children that seem to have little or no hope. Therefore the efforts of the Doha Marriott Hotel provide a high level of goodwill to me and my family. Employees at this Hotel have worked with orphans in Qatar to provide life experiences as well as needed items. They have hosted Orphans to learn how to cook with the Hotel's Chefs and even the housekeeping staff provide needed items to the children in the orphanage. Their goal - A Spirit to Serve - does not discriminate from even the least of these.
Volunteer Marriott employees have assisted with Habitat for Humanity in building thousands of homes in 15 different countries. The piece that really hits home with me though is the efforts of Marriott in Doha, Qatar. My family being heavily involved in international adoption efforts hold orphans very dear to our heart and seek ways to serve and help these children that seem to have little or no hope. Therefore the efforts of the Doha Marriott Hotel provide a high level of goodwill to me and my family. Employees at this Hotel have worked with orphans in Qatar to provide life experiences as well as needed items. They have hosted Orphans to learn how to cook with the Hotel's Chefs and even the housekeeping staff provide needed items to the children in the orphanage. Their goal - A Spirit to Serve - does not discriminate from even the least of these.
Follow Bill Marriott's Blog
For up to the date information on Marriott and Marriott's ongoing efforts, follow chairman and CEO, JW Marriott, Jr., (Bill)'s company blog.
Since this course is nearly over and blogs my blogs on the company are running short, consider following the chairman's blog if you're interested in following the global progress of Marriott. Of course you will primarily see the good of the company posted in this blog, the chairman and CEO give a lot of insight on the company's domestic and international strategy and the reasons for such strategy, as well as the target markets. This is the site for some of the most up-to-date happenings and they come from directly from Mr. Marriott himself.
JW Marriott, Jr.
Since this course is nearly over and blogs my blogs on the company are running short, consider following the chairman's blog if you're interested in following the global progress of Marriott. Of course you will primarily see the good of the company posted in this blog, the chairman and CEO give a lot of insight on the company's domestic and international strategy and the reasons for such strategy, as well as the target markets. This is the site for some of the most up-to-date happenings and they come from directly from Mr. Marriott himself.
JW Marriott, Jr.
New Addition in France
December 2, 2010: Marriott International has announced an addition to the luxury JW Marriott Hotels and Resorts line. The luxurious Palais Stephanie Hotel on the famous La Croisette in Cannes will be re-branded a JW Marriott in early 2011.
Cannes is a world renowned location for luxury and the original site of the International Film Festival from 1946 through the mid 1980s. The hotel is located at the original site of the Film Festival and this marks one more notch in Marriott's expansion of their key line of luxury hotels and resorts in Europe. Not to mention a key location for high-class travelers in France.
For more on the story, follow the link: JW = Cote d' Azur
Cannes is a world renowned location for luxury and the original site of the International Film Festival from 1946 through the mid 1980s. The hotel is located at the original site of the Film Festival and this marks one more notch in Marriott's expansion of their key line of luxury hotels and resorts in Europe. Not to mention a key location for high-class travelers in France.
For more on the story, follow the link: JW = Cote d' Azur
Wednesday, December 1, 2010
More in store for 2011 and beyond?
Currently more than 80% of Marriott's 3,500 hotels are located in the U.S. However, this percentage is expected to drop to near 50% over the next ten years as Marriott opens more hotels on international soils. Marriott will increase the number of hotels in China and India alone by nearly 150 locations within the next five years.
Why so much growth outside of the U.S.? Chairman and CEO, J.W. Marriott Jr., had this to day. "those middle-class economies are growing very fast," speaking of India and China. He added, "We're seeing huge numbers of muddle-class in India and China and they're starting to travel."
Another reason for increase percentage of growth outside of the U.S., could be related to stricter international travel rules imposed by the U.S. to combat terrorist threats. Additionally, says J.W. Marriott, Jr., "the hospitality industry lacks allies in Washington sensitive to the impact of immigration restrictions and security measures on the tourism industry." Increased international travel by U.S> residents and lack of travel and expected travel into the U.S> has forced Marriott to look past U.S. sands for continuing growth.
Why so much growth outside of the U.S.? Chairman and CEO, J.W. Marriott Jr., had this to day. "those middle-class economies are growing very fast," speaking of India and China. He added, "We're seeing huge numbers of muddle-class in India and China and they're starting to travel."
Another reason for increase percentage of growth outside of the U.S., could be related to stricter international travel rules imposed by the U.S. to combat terrorist threats. Additionally, says J.W. Marriott, Jr., "the hospitality industry lacks allies in Washington sensitive to the impact of immigration restrictions and security measures on the tourism industry." Increased international travel by U.S> residents and lack of travel and expected travel into the U.S> has forced Marriott to look past U.S. sands for continuing growth.
Investory Relations - Stock on the Move
December 2010 looks promising to Marriott shareholders. Stock price has reached $40.00/share which is the highest it has been in some time and up $0.79 from Tuesday's close at $3.21.
Tuesday, November 30, 2010
Global Footprint
Marriott recently released it's sustainability report on their ongoing commitment for social responsibility, sustainability and global diversity.
This report shows Marriott's progress toward diversity and social/environmental responsibility, including a prototype Green-Hotel, increasing women and minority owned hotels, and humanitarian efforts.
Marriott is committed to grow responsibly. The efforts are evident in the global footprint.
To read the sustainability report, please click here: Marriott Sustainability Report
This report shows Marriott's progress toward diversity and social/environmental responsibility, including a prototype Green-Hotel, increasing women and minority owned hotels, and humanitarian efforts.
Marriott is committed to grow responsibly. The efforts are evident in the global footprint.
To read the sustainability report, please click here: Marriott Sustainability Report
Investor Relations
Stock price continued to fall on Monday, closing at $39.14 and has started the day after Cyber Monday slowly, dropping an additional $0.04.
Marriott Nashville and Milwaukee - Have employees damaged the Company's Reputation?
Erin Andrews - one of America's favorite sports anchors has been the victim of a "Peeping Tom" incident. Unfortunately this occurred at Marriott and Radisson Hotels. Staff at hotels gave a specific guest information relaying the specific room where Ms. Andrews was staying.
This is a PR nightmare for Marriott and Radisson Hotels, and not just the locations responsible for the incidents. The publicity this lawsuit has received can have impact for years to come, specifically in Marriott's efforts to cater to celebrity guests and even attract celebrity spokespersons for marketing and advertising. Even the average traveler will be uncertain in a hotel staff person will "sell his/her" privacy and this could have a significant impact on patrons choice in hotel stays.
This is a PR nightmare for Marriott and Radisson Hotels, and not just the locations responsible for the incidents. The publicity this lawsuit has received can have impact for years to come, specifically in Marriott's efforts to cater to celebrity guests and even attract celebrity spokespersons for marketing and advertising. Even the average traveler will be uncertain in a hotel staff person will "sell his/her" privacy and this could have a significant impact on patrons choice in hotel stays.
Marriott Partners with LAN Airlines
Marriott International and LAN Airlines (serving Latin America and Miami) have partnered to offer exclusive savings to LANPASS members (LAN Airlines frequent flier program). This partnership will provide elite program members a 20% discount on hotel stays at Marriott Branded hotels.
This gives Marriott some competitive leverage/advantage for the Latin America traveler. A large number of travelers through the specific region fly LAN Airlines. Because no other hotel brand offers such partnership discounts, this opens the door for Marriott hotels and resorts in this specific region to reach (and grow) a larger customer base.
This gives Marriott some competitive leverage/advantage for the Latin America traveler. A large number of travelers through the specific region fly LAN Airlines. Because no other hotel brand offers such partnership discounts, this opens the door for Marriott hotels and resorts in this specific region to reach (and grow) a larger customer base.
Monday, November 29, 2010
Marriott Declares Quarterly Cash Dividend
Board of Directors announced a quarterly cash dividend of $.0875 per share of common stock. This is a historic event in that this quarterly cash dividend is back to the previous level prior tithe economic downturn. The prior quarter's dividend was less than half this amount. This could be evidence of better things to happen as this appears the beginning of a recovering travel industry.
Time will tell ...
Time will tell ...
Investor Relations - Cyber Monday
Marriott Stock Price trading slow on Cyber MOnday. Price is down $0.78 to $38.63 from the previous close of $39.39.
Marriott's Culture - People First
Marriott's long-lived foundational value is "People First." Over 80 years, the strong sentiment that the Marriott associates are the greatest asset has been the foundation for the company's success and one from which most corporate culture decisions have been made.
The Marriott Culture is the experience created for customers, demonstrated by associates. The underlying value is simply people serving people. This simple, yet direct value is a key element attributed to Marriott's successful and sustained growth as well as the employees satisfaction.
The Marriott Culture is the experience created for customers, demonstrated by associates. The underlying value is simply people serving people. This simple, yet direct value is a key element attributed to Marriott's successful and sustained growth as well as the employees satisfaction.
Marriott to Increase Presence in India
India, one of the world's fasted growing populations is currently home to a mere 11 Marriott branded hotels.
That number will soon change says Arne Sorenson, president and chief operating officer for Marriott International. Marriott plans to increase their presence in India to 100 hotels within the next five years. Says Sorenson, " India has the second largest hotel development pipeline in Asia and is expected to double the number of branded hotel rooms over the next three years to approximately 120,000 rooms." Then percent of those will carry a Marriott brand which will see Marriott increasing their number of branded locations to 41 within those three years.
Not only does this increase Marriotts' foothold in the India market for travel accommodations, this will enable Marriott to provide career opportunity for thousands.
Click here for the full press release: Marriott on the Move in India
That number will soon change says Arne Sorenson, president and chief operating officer for Marriott International. Marriott plans to increase their presence in India to 100 hotels within the next five years. Says Sorenson, " India has the second largest hotel development pipeline in Asia and is expected to double the number of branded hotel rooms over the next three years to approximately 120,000 rooms." Then percent of those will carry a Marriott brand which will see Marriott increasing their number of branded locations to 41 within those three years.
Not only does this increase Marriotts' foothold in the India market for travel accommodations, this will enable Marriott to provide career opportunity for thousands.
Click here for the full press release: Marriott on the Move in India
Friday, November 19, 2010
Growing Green in Brazil
November 17, 2010 - Marriott signs preferred partnership agreement with Brazil's largest real estate company for 50 GREEN Fairfield Inn Hotels:
Marriott's newly announced partnership with PDG Realty in Brazil will construct 50 new hotels in Brazil with an environmentally friendly design to gain energy efficiencies. In addition to constructing these energy efficient and environmentally friendly hotels, each partner (Marriott and PDG Realty) will make financial contributions to support the Amazon Rain Forest preservation. Contributions for this cause will be made through the Amazonas Sustainable Foundation.
This partnership is a strategic move for Marriott and moves this company into a market with significant growth potential. Brazil will be hosting two major sports events in the next six years. Further, domestic travel has increased in Brazil and makes this country a prime target for future growth in the travel industry.
For more on this new partnership, please visit: http://investor.shareholder.com/mar/releasedetail.cfm?ReleaseID=531223
Marriott's newly announced partnership with PDG Realty in Brazil will construct 50 new hotels in Brazil with an environmentally friendly design to gain energy efficiencies. In addition to constructing these energy efficient and environmentally friendly hotels, each partner (Marriott and PDG Realty) will make financial contributions to support the Amazon Rain Forest preservation. Contributions for this cause will be made through the Amazonas Sustainable Foundation.
This partnership is a strategic move for Marriott and moves this company into a market with significant growth potential. Brazil will be hosting two major sports events in the next six years. Further, domestic travel has increased in Brazil and makes this country a prime target for future growth in the travel industry.
For more on this new partnership, please visit: http://investor.shareholder.com/mar/releasedetail.cfm?ReleaseID=531223
Thursday, October 14, 2010
Joint Venture with AC Hotels Opens More Doors in Eurooe and Latin America
October 7, 2010 Marriott International and AC Hotels (based in Spain) announce a new joint venture that will thrive on the strengths of both companies and offer an urban, 4-star line of hotel accommodations in Europe and Latin America. The new JV will be called AC by Marriott. This new JV will focus on market leadership in Europe and Latin America. TO begin, more than 90 current AC Hotel locations will be re-branded and will enter into long-term management or franchise contracts wiht AC by Marriott.
The new AC by Marriott branded hotels are expected to launch in 2011, assuming the Joint Venture is approved and all documents closed byu the end of the 20-10 calendar year.
For more information, visit Marriott's Investor Relations ling below:
AC by Marriot Joint Venture
The new AC by Marriott branded hotels are expected to launch in 2011, assuming the Joint Venture is approved and all documents closed byu the end of the 20-10 calendar year.
For more information, visit Marriott's Investor Relations ling below:
AC by Marriot Joint Venture
Tuesday, October 12, 2010
3rd Quarter 2010 Results
October 6, 2010 - Marriott International presented its' 3rd Quarter Financial results to investors and the public.
In early July, Company officials had predicted an increase in EPS from 3rd Quarter 2009 to $0.18-$0.22 per share. The prediction was verified as Marriott reported a diluted EPS for the third quarter of $0.22 per share which was a 47% increase over the same period in 2009.
As improtant as this increase in EPS is to shareholders, of maybe more importance to the hopspitality industry as a whole is the $83 million net income reported for the third quarter 2010, compared to $466 million net loss reported at the end of the 3rd Quarter 2009. Does this signify an economic turnaround? Time will tell, but for the hospitality industry in general, it does signify that world-wide people are now traveling again, which is the life blood of Marriott and the entire hospitality industry.
Follow the link below to see the entire 3rd Quarter report:
Marriott Interntional 3rd Quarter 2010 Results
In early July, Company officials had predicted an increase in EPS from 3rd Quarter 2009 to $0.18-$0.22 per share. The prediction was verified as Marriott reported a diluted EPS for the third quarter of $0.22 per share which was a 47% increase over the same period in 2009.
As improtant as this increase in EPS is to shareholders, of maybe more importance to the hopspitality industry as a whole is the $83 million net income reported for the third quarter 2010, compared to $466 million net loss reported at the end of the 3rd Quarter 2009. Does this signify an economic turnaround? Time will tell, but for the hospitality industry in general, it does signify that world-wide people are now traveling again, which is the life blood of Marriott and the entire hospitality industry.
Follow the link below to see the entire 3rd Quarter report:
Marriott Interntional 3rd Quarter 2010 Results
Outsourcing
During 2005, Marriott International began outsourcing all Human Resource functions to Hewitt Associates. With this outsourcing venture, Marriott transferred responsibilities for all benefits administration, compensation, recruiting services and employee training and development for more than 130,000 employees.
In addition to outsourcing the HR function to Hewitt, Marriott has also outsourced the support of its PeopleSoft financial software system to Accenture. Such moves have been made, per Marriott Internationals, so they can focus their attention on guests.
In addition to outsourcing the HR function to Hewitt, Marriott has also outsourced the support of its PeopleSoft financial software system to Accenture. Such moves have been made, per Marriott Internationals, so they can focus their attention on guests.
Marriott's Competitive Strategy
Marriott quickly recognized that one hotel brand would not cater to every guests needs. Therefore, Marriott utilizes a Broad Differentiation strategy in that there are multiple hotel brands all catering to a different type of traveler or consumer in the hospitality market. From upscale offerings like Ritz Carlton and JW Marriott Resorts and Spas for the consumer desiring high-end and luxurious accommodations to the Courtyard by Marriott that provides the business traveler in-room offices space, to the Fairfield Inn which provides Marriott quality for travelers on a budget, Marriott International has lodging brand that will meet about any consumer desires.
The aforementioned Ritz Carlton, JW Marriott and Marriott Hotels and Resorts are marketed toward a consumer that desires a more upscale lodging experience and is willing to pay a higher cost for the extra luxurious amenities. Courtyard by Marriott provides business travelers space to have a remote office set-up in room and affords the ability to be productive after hours on business trips. Springhill Suites is a moderate hotel offering a single traveler or a family a living area to unwind before a good nights rest. Residence Inn and Townplace Suites offers extended stay accommodations for travelers that are looking for a place a little more like home. These accommodations offer full size kitchens and living areas with the sleeping quarters completely separated. Finally, the Fairfield Inn as mentioned above is for the budget traveler that desires Marriott quality accommodations.
All-in-all, there is a Marriott for all sorts of occasions and Marriott's many offerings in accommodations, all providing exceptional Marriott service and quality, assist Marriott in their mission of building customer loyalty.
The aforementioned Ritz Carlton, JW Marriott and Marriott Hotels and Resorts are marketed toward a consumer that desires a more upscale lodging experience and is willing to pay a higher cost for the extra luxurious amenities. Courtyard by Marriott provides business travelers space to have a remote office set-up in room and affords the ability to be productive after hours on business trips. Springhill Suites is a moderate hotel offering a single traveler or a family a living area to unwind before a good nights rest. Residence Inn and Townplace Suites offers extended stay accommodations for travelers that are looking for a place a little more like home. These accommodations offer full size kitchens and living areas with the sleeping quarters completely separated. Finally, the Fairfield Inn as mentioned above is for the budget traveler that desires Marriott quality accommodations.
All-in-all, there is a Marriott for all sorts of occasions and Marriott's many offerings in accommodations, all providing exceptional Marriott service and quality, assist Marriott in their mission of building customer loyalty.
Marriott Weaknesses
Marriott suffered from downgrading of its debt ratings by S&P in 2009. The downgrade to BBB- was a result of the overall effect felt on the travel and hospitality industry from the economic decline which resulted in corporate executives making fewer business trips and opting for meetings through electronic media and reductions in family travel.
This downgrade in debt rating increases the overall cost of capital and makes it more difficult and expensive for Marriott to access credit. Fortunately, on October 1, 2010 as the economy has begun to rebound slightly and travel has since increased, S&P has increased Marriott's overall debt rating to BBB and Marriott's reducing the cost of capital and increasing Marriott's access to lower interest rate credit.
This downgrade in debt rating increases the overall cost of capital and makes it more difficult and expensive for Marriott to access credit. Fortunately, on October 1, 2010 as the economy has begun to rebound slightly and travel has since increased, S&P has increased Marriott's overall debt rating to BBB and Marriott's reducing the cost of capital and increasing Marriott's access to lower interest rate credit.
Friday, October 1, 2010
Marriott's Muscle
Marriott's main strength is it expertise in hotel development and management. From a customer's perspective (speaking from my own experience anyway) the Marriott hotel brands are managed consistently across all brands. I've never left a Marriott (whether a Fairfied Inn or a JW Marriott) and wish I had stayed elsewhere. This image sets the Marriott brand apart fro other hotels which has more impact on the lower and mid-scale brands like Fairfield, Courtyard, Townplace, etc. When I'm looking for a lower or midscale place to stay, I never even consider the competition if there is a Marriott brand nearby. On the other hand, I frequently leave other hotels with the thought "this town needs a Marriott."
One great internal strength is the corporate governance structure of Marriott. Having a CEO and board chair thinking on the same page is always beneficial for a company. Thus, having the CEO be the chairman of the board strengthens Marriott in investors eyes. Shareholders can be confident that management WILL be focused on what is best for the shareholders, which is increasing the shareholder's value of their investment. Market Leadership and having a "world" branded name, increases the overall value of Marriott ebables successful ventures in the international market. Management's ability to adapt to changes in personal preferences and create lodging ventues that provide what cutomers need and want has enabled Marriott to continue as a maket leader in the hospitality industry.
One great internal strength is the corporate governance structure of Marriott. Having a CEO and board chair thinking on the same page is always beneficial for a company. Thus, having the CEO be the chairman of the board strengthens Marriott in investors eyes. Shareholders can be confident that management WILL be focused on what is best for the shareholders, which is increasing the shareholder's value of their investment. Market Leadership and having a "world" branded name, increases the overall value of Marriott ebables successful ventures in the international market. Management's ability to adapt to changes in personal preferences and create lodging ventues that provide what cutomers need and want has enabled Marriott to continue as a maket leader in the hospitality industry.
Thursday, September 23, 2010
The "Marriott Way"
Marriott's core value and culture (unchanged for 80 years) have provided the framework for Marriott's international success. The "Marriott Way" as it is called is about SERVING. Serving, the associates, the customer and the community.
Serving the associates and helping them achieve success is fundamental in serving customers and the community. Satisfied employees in the service industry leads to employees that are eager to serve and satisfy customers. Satisfied customers lead to repeat business and new customers. Increased growth, market share and profitability is fully dependent on satisfied customers in this industry.
How is Marriott doing it the "Marriott Way?" Associates do whatever it takes to take care of the customer, take pride in their surroundings and pay attention to detail. Personally speaking, these attributes have resulted in one satisfied (4 satisfied counting each family member) customer with every single stay at a Marriott branded hotel. I've had numerous "bad" hotel experiences, but not once have I ever been slightly dissatisfied at a Marriott. Again, personally speaking, I like the "Marriott Way" when it comes to serving customers.
Serving the associates and helping them achieve success is fundamental in serving customers and the community. Satisfied employees in the service industry leads to employees that are eager to serve and satisfy customers. Satisfied customers lead to repeat business and new customers. Increased growth, market share and profitability is fully dependent on satisfied customers in this industry.
How is Marriott doing it the "Marriott Way?" Associates do whatever it takes to take care of the customer, take pride in their surroundings and pay attention to detail. Personally speaking, these attributes have resulted in one satisfied (4 satisfied counting each family member) customer with every single stay at a Marriott branded hotel. I've had numerous "bad" hotel experiences, but not once have I ever been slightly dissatisfied at a Marriott. Again, personally speaking, I like the "Marriott Way" when it comes to serving customers.
Monday, September 20, 2010
Investor Relations/Stock Update
September 20, 2010, @ 3.05PM EST:
MAR trading on the NYSE at $36.48, up $0.86 for the day (MAR opened at $35.80). Marriott International's stock price should be interesting to watch over the next few days/weeks to see if the partnership with AMLI has any effect.
MAR trading on the NYSE at $36.48, up $0.86 for the day (MAR opened at $35.80). Marriott International's stock price should be interesting to watch over the next few days/weeks to see if the partnership with AMLI has any effect.
Strategic Partnership for Marriott?
September 16, 2010, Marriott ExecuStay is awarded exclusive contract with AMLI Residential (the leading owner and developer of luxury apartment communities in the U.S.).
This partnership places Marriott's furnished apartment service in over 1,000 AMLI upscale apartments in luxury apartment communities, bringing Marriott ExecuStay totals to more than 5,500 units available in the U.S.
How does this strategic move affect Marriott? First, this eliminates the need for the executive lease (a six-month to a year lease) of rental property. This caters to those executives that are on an extended contract job or a professional that is transitioning to a new location/job.
Relocations may not be such a chore, now that Marriott will cater to these professionals and contract workers. Six-months in Marriott extended stay hotel or six months in a rental property? You decide, but don't forget your Marriott Rewards number!
This partnership places Marriott's furnished apartment service in over 1,000 AMLI upscale apartments in luxury apartment communities, bringing Marriott ExecuStay totals to more than 5,500 units available in the U.S.
How does this strategic move affect Marriott? First, this eliminates the need for the executive lease (a six-month to a year lease) of rental property. This caters to those executives that are on an extended contract job or a professional that is transitioning to a new location/job.
Relocations may not be such a chore, now that Marriott will cater to these professionals and contract workers. Six-months in Marriott extended stay hotel or six months in a rental property? You decide, but don't forget your Marriott Rewards number!
Wednesday, September 15, 2010
marriot Investor Relations/Stock Update
September 15, 2010. Marriott is trading on the NYSE at $35.80 (down $0.40 from yesterday's close of $36.20).
Bill Marriott Announcement
I wish I could say I was a Ritz-Carlton frequent customer. However, working for a public institution funded by the Commonwealth of Kentucky, suffice it to say, my income level is not quite where one would want it to be to frequent what I consider the "creme de la creme" of the hospitality industry.
Needless to say, Ritz Carlton (part of the Marriott brand) has just announced a rewards program that mirrors, no is greatly superior to, that of the company's Marriott Rewards Program. I've always been impressed with the manner win which hte Marriot Reards program operates (I can't be too dissappointed considering I have not had to pay for a hotel room over hte last six years due to my accumulation of rewards point when I trveled significantly for business). However, this new rewards or loyalty program offered to Ritz-Carlton guests is superior to any rewards program I have ever seen. Not only can guests earn free stays at Ritz-Carlton properties world-wide, exclusinve rewards from Ntional Geographic, Vera Wang, etc. are also available.
Now, to book my reservations..... Oh yeah, I work for the government. I can still dream though!
Needless to say, Ritz Carlton (part of the Marriott brand) has just announced a rewards program that mirrors, no is greatly superior to, that of the company's Marriott Rewards Program. I've always been impressed with the manner win which hte Marriot Reards program operates (I can't be too dissappointed considering I have not had to pay for a hotel room over hte last six years due to my accumulation of rewards point when I trveled significantly for business). However, this new rewards or loyalty program offered to Ritz-Carlton guests is superior to any rewards program I have ever seen. Not only can guests earn free stays at Ritz-Carlton properties world-wide, exclusinve rewards from Ntional Geographic, Vera Wang, etc. are also available.
Now, to book my reservations..... Oh yeah, I work for the government. I can still dream though!
Thursday, September 9, 2010
Reaching out to Gen X
Gen Xers make up approximately 31% of all leisure and 36% of all business travel and take about 3.5 leisure and 7 business trips annually (http://www.ustravel.org/news/press-kit/travel-facts-and-statistics).
What does Gen X want from the hospitality industry? A clean room? Fair price? Nice amenities? Sure, but what they desire the most is a relationship with their hotel chain. To accommodate to the taste of the X Generation, Marriott has undertaken major remodeling and renovation projects across the Flagship brand, Marriott Hotels and Resorts and to the Courtyard by Marriott brand, the business traveler's hotel. These renovations are catering primarily to the desires and demands of their most frequent travelers, the Gen X, with technology improvements such as HDTVs in each room, wireless access throughout, ergonomic furniture and decorations.
In addition to the renovations and remodeling to make the hotels more appealing ot this class of business and leisure traveler, there have been upgrades and changes to the marriott Rewards program (Marriott's relationship building tool) that include discounted travel packages and amenities that appeal to this generation.
What does Gen X want from the hospitality industry? A clean room? Fair price? Nice amenities? Sure, but what they desire the most is a relationship with their hotel chain. To accommodate to the taste of the X Generation, Marriott has undertaken major remodeling and renovation projects across the Flagship brand, Marriott Hotels and Resorts and to the Courtyard by Marriott brand, the business traveler's hotel. These renovations are catering primarily to the desires and demands of their most frequent travelers, the Gen X, with technology improvements such as HDTVs in each room, wireless access throughout, ergonomic furniture and decorations.
In addition to the renovations and remodeling to make the hotels more appealing ot this class of business and leisure traveler, there have been upgrades and changes to the marriott Rewards program (Marriott's relationship building tool) that include discounted travel packages and amenities that appeal to this generation.
Thursday, September 2, 2010
Stock info, upcoming investor event
Marriott International, (NYSE: MAR), stock price as of 12:12 EST on 9/2/02 is up $0.91 to $34.51.
MAR investor's anxious for October 6, 2010. Why? That's the date scheduled for the release of the company's third-quarter 2010 earnings. Marriott International operates on an odd quarter basis (i.e., they are not the typical calendar quarters). Marriott's 3rd Q spans the period from June 19 through Sept. 10, 2010.
One day after the release, company CFO and COO (Carl Berquist and Arne Sorenson, respectively) will hold a conference call/webcast to discuss the company's financial performance and earnings report. What will they discuss? Has the travel and hospital market gained ground it lost during the middle of the economic downturn? Tune in on October 7, 2010 at 10AM EST to find out. You may access the conference webcast at the following link:
http://investor.shareholder.com/mar/default.cfm
Click the link for 3rd Q earnings under "Recent and Upcoming Events."
MAR investor's anxious for October 6, 2010. Why? That's the date scheduled for the release of the company's third-quarter 2010 earnings. Marriott International operates on an odd quarter basis (i.e., they are not the typical calendar quarters). Marriott's 3rd Q spans the period from June 19 through Sept. 10, 2010.
One day after the release, company CFO and COO (Carl Berquist and Arne Sorenson, respectively) will hold a conference call/webcast to discuss the company's financial performance and earnings report. What will they discuss? Has the travel and hospital market gained ground it lost during the middle of the economic downturn? Tune in on October 7, 2010 at 10AM EST to find out. You may access the conference webcast at the following link:
http://investor.shareholder.com/mar/default.cfm
Click the link for 3rd Q earnings under "Recent and Upcoming Events."
Tuesday, August 31, 2010
Marriott's Corporate Governance -Leadership
Marriott operates using a board leadership structure that is not uncommon in public companies. However, the Marriott Company does apply one unique twist to corporate governance that gives the organization a competitive advantage over other entities in the hospitality industry. That unique aspect is that J.W. Marriott, Jr (son of the Marriott Founder, J.W. Marriott) serves the company as Chairman and CEO.
Unlike similar organizations with two separate individuals serving in each of the aforementioned roles, Marriott has eliminated (to some extend) the confusion that could exist with two separate individuals acting in leadership roles for the company. This also eliminates the disconnect that can occur between upper management and the Board of Directors of large companies when it comes to the role and responsibility of senior management. Senior management's primary responsibility is to increase the value of the company or the investment of the shareholders. Sometimes this "goal" gets lost, especially when senior management is compensated based on short-term performance, etc. and they can lose site of their primary responsibility and fail to consider the future effects of current decisions.
However, with the CEO or senior management leader position being held by a shareholder, it is more likely to expect that decisions will be more thoroughly considered by the CEO, because there is simply more at stake than an annual compensation bonus.
Unlike similar organizations with two separate individuals serving in each of the aforementioned roles, Marriott has eliminated (to some extend) the confusion that could exist with two separate individuals acting in leadership roles for the company. This also eliminates the disconnect that can occur between upper management and the Board of Directors of large companies when it comes to the role and responsibility of senior management. Senior management's primary responsibility is to increase the value of the company or the investment of the shareholders. Sometimes this "goal" gets lost, especially when senior management is compensated based on short-term performance, etc. and they can lose site of their primary responsibility and fail to consider the future effects of current decisions.
However, with the CEO or senior management leader position being held by a shareholder, it is more likely to expect that decisions will be more thoroughly considered by the CEO, because there is simply more at stake than an annual compensation bonus.
Monday, August 30, 2010
MGT 656- Green
I have chosen Marriott International as the corporation I will follow during this semester because I have always been intrigued by this organizations ability to provide consistent quality service to me wherever I am. Of course, it is easy to see how the upscale hotel and resort divisions can provide consistent and quality service, however, what has amazed me is the ability of the lower and mid-scale market entrants (particularly those that are franchised), can provide similar quality, whether I am in San Antonio or Eastern Kentucky.
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