Marriott International Inc - Travel and
Tourism - World
Euromonitor International : Global Company Profile
January 2009
Marriott International Inc - Travel and Tourism
World
List of Contents and Tables
Strategic Evaluation................................................................................................................................................ 1
SWOT analysis.......................................................................................................................................................... 1
12 Month Highlights ............................................................................................................................................... 2
2007-2008 ................................................................................................................................................................. 2
Prospects .................................................................................................................................................................. 3
Core Businesses ........................................................................................................................................................ 3
Growth Opportunities ............................................................................................................................................... 3
Limited Potential....................................................................................................................................................... 5
Table 1
Marriott International Inc: World Sector Sales Performance 2007.................................... 5
Table 2
Marriott International Inc: Hotels Regional Sales Performance 2007 ............................... 5
Company Strategy .................................................................................................................................................. 5
Strategic Objectives and Challenges......................................................................................................................... 6
Ownership Events ..................................................................................................................................................... 6
Table 3
Marriott International Inc: World Shares & Rankings in Travel & Tourism
by Sector 2006-2007.......................................................................................................... 6
Table 4
Marriott International Inc: World & Regional Shares in Travel & Tourism by
Sector 2007........................................................................................................................ 6
Company Structure ................................................................................................................................................ 7
Marriott International Inc......................................................................................................................................... 7
Summary 1
Marriott International Inc: Travel & Tourism Key Facts................................................... 7
Production and Distribution ..................................................................................................................................... 7
Brand Assessment ................................................................................................................................................... 7
Brand Strategy .......................................................................................................................................................... 7
Marriott Hotels & Resorts ........................................................................................................................................ 8
Courtyard.................................................................................................................................................................. 8
Residence Inn............................................................................................................................................................ 9
Renaissance Hotels & Resorts .................................................................................................................................. 9
Ritz-carlton ............................................................................................................................................................... 9
Appendices............................................................................................................................................................... 9
Financial Summary................................................................................................................................................. 10
Table 5
Marriott International Inc: Financial Summary 2003-2007 ............................................. 10
Company Background............................................................................................................................................. 10
Summary 2
Marriott International Inc: Historical Development ........................................................ 10
Summary 3
Marriott International Inc: Subsidiaries 2007 .................................................................. 15
Summary 4
Marriott International Inc: Travel & Tourism Brands 2007............................................. 15
Summary 5
Marriott International Inc: Company Locations .............................................................. 15
Summary 6
Marriott International Inc: Websites................................................................................ 15
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MARRIOTT INTERNATIONAL INC
STRATEGIC EVALUATION
SWOT analysis
Strengths
•
Global leader – Marriott International Inc is the leader in the global hotels market, with a near 5% value
share in 2007 and a large geographic presence.
•
Unhampered by hotel ownership – the company owns less than 1% of its hotel portfolio and is thus less
vulnerable to real estate price fluctuations than rivals. Moreover, its emphasis on franchising facilitates the
rapid expansion of its portfolio.
•
Focused pipeline development – Marriott International is pursuing a growth strategy to further consolidate
its presence in foreign markets and capitalise on the booming travel and tourism industries of emerging
markets, which should continue to serve its business well in terms of revenue over the forecast period.
Unfortunately, the global economic downturn is hindering expansion plans, particularly as consumer
confidence softens and demand for travel accommodation falls.
•
Strong internet presence – Marriott International's website guarantees the best rates available, enticing
price-conscious consumers away from third party websites.
•
IT solutions – Marriott International is upgrading its properties with technology that responds to the needs
of business and leisure travellers. In the latter part of the review period, for example, it has transformed its
public areas to encourage guests to work and socialise through the adoption of the latest design, technology,
food and beverage offerings.
Weaknesses
•
Domestic market focus – despite international expansion, Marriott International remains heavily reliant on
the US, making it sensitive to the changing fortunes of its domestic market.
•
Luxury brands – mid-scale and upscale hotel brands leave Marriott International vulnerable to any potential
global economic downturns, particularly given that economy travel accommodation is gaining increased
penetration in major destination markets.
•
Courtyard brand – the Courtyard brand is maturing and losing its core business customers. Industry experts
believe the revitalisation process may not be enough to lure customers back mainly due to a fierce
competitive environment, packed with exclusive offers and increasingly modern accommodation,
particularly at a time when business travellers want to cut costs.
•
Lack of a low-cost lifestyle brand – Marriott International does not have a low-cost lifestyle brand in its
product portfolio, like aloft from Starwood and Hotel Indigo from IHG.
•
Uncertainty around the launch of "Edition" – the launch of "Edition" by Marriott, a new genre of a lifestyle
brand that combines an intimate and unique travel accommodation experience, will come at a turbulent
period, characterised by weak demand for luxury hotels in the US.
Opportunities
•
Emerging markets – in order to offset the negative impact of such a challenging business environment and
to capitalise on the opportunities present in emerging markets a number of hotels have turned to them.
Marriott International is no different and Asia-Pacific countries became key target markets.
•
Individuated experience – the growing consumer demand for an individuated travelling experience is
generating potential for hotel operators to develop distinctive brands, properties and services.
Threats
•
Consumer confidence – general economic and business conditions, which adversely impact the income
levels of potential travellers, coupled with a rising lack of confidence in strong markets like the US, can
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have a negative impact on Marriott International's operations. This is particularly true given its strong
presence in North America, where it is the largest hotel brand in value terms with a strong focus on midscale and luxury brands. A downturn in business travel – poor economic conditions are forcing businesses
to reduce travel and spend less on travelling. Marriott's brands, especially the luxury brands, are likely to
see less travellers.
•
Economy brand development – the rapid growth achieved by economy hotel brands in the last three years
poses a potential threat for mid-scale, limited-service brands such as the SpringHill Suites.
•
Credit crunch – there is a fear that the global travel and tourism industry will see a corresponding slowdown
in revenue as consumers spend and travel less in the short term. Marriott International is dependent on the
availability of consumers willing to enter into credit agreements, and, therefore, a general spending
reduction will result in a drop in revenue. This also applies to potential investment from prospective hotel
owners and franchisees looking to fund construction, renovations and investments.
12 MONTH HIGHLIGHTS
2007-2008
•
Marriott International Inc remained the absolute global leader in travel accommodation, with total sales of
US$18 billion in 2007. Such a performance is the result of a business strategy that is focused on the
continuous development of strong brands and business competencies. The unstable economic environment
as well as the non-stop consolidation within travel accommodation observed in the latter part of the review
period, however, is likely to continue impacting Marriott International's operations in the short term.
•
In an attempt to offset the negative impact of a challenging business environment, Marriott International has
aggressively expanded its international presence. Its hotel pipeline development includes numerous
properties set to open through 2011 in India, China, Vietnam, Thailand, Norway, Sweden, Saudi Arabia,
Latin America, the Caribbean and even in the US. The global economic downturn, however, is hindering
expansion plans, particularly as consumer confidence softens and demand for travel accommodation falls.
•
In line with its international expansion strategy, Marriott International launched a Global Language
Learning programme, with 30 new language offerings for employees to learn how to speak different
languages.
•
Aside from investing heavily on new properties, Marriott International has also enhanced the benefits of its
Marriott Rewards programme to compete head-to-head with Hilton and IHG, boost overall brand loyalty
and increasingly attract new customers. Therefore, in 2008, it announced the introduction of no blackout
dates in January 2009, named Aeromexico as its new airline partner, and started offering members the
possibility to redeem points for trips on 17 cruise lines.
•
In August 2008, Marriott International also relaunched its MegaBonus promotion, whereby members could
earn up to 25,000 bonus points when using a Visa card to pay for travel accommodation.
•
In 2008, Marriott International upgraded its Spanish language website by adding a new functionality which
allows Spanish-speaking Marriott customers to compare hotel accommodations in their language. The new
function allows customers to search for travel accommodation based on their preference of hotel category,
or amenity.
•
In October 2007, the company announced plans to open 59 hotels in nine Asian markets, including multiple
openings in China, India and Thailand, by the end of 2010.
•
Marriott's extended-stay Residence Inn brand launched a distinctive new advertising campaign in 2007 to
showcase its new Innfusion décor.
•
In July 2007, the company's Courtyard, Residence Inn, Fairfield Inn, TownePlace Suites and SpringHill
Suites brands eliminated Wi-Fi charges for guests in lobbies and other public areas in order to target on-thego customers and boost efforts to develop multi-functional public interiors.
•
In 2007, Marriott deepened its commitment to attracting Generation X families by entering into an
agreement with Nickelodeon for the creation of a chain of upscale water park resorts. The plan includes the
launch of 20 parks by 2020, targeted directly at children and parents.
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Marriott International Inc - Travel and Tourism
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PROSPECTS
Core Businesses
•
Marriott International Inc is engaged in the operation and franchising of hotels, the development and
operation of holiday ownership resorts, the operation of Marriott Executive Apartments, the provision of
furnished corporate housing through its Marriott ExecuStay division and the operation of conference
centres.
•
Between 2006 and 2007, its global value share remained unchanged as a result of the unstable economic
environment.
•
Facing maturity and intense competition in key markets, most notably the US, Marriott International is
looking to diversify its consumer base beyond the business travellers and attract a wider range of travellers,
including Generation X families.
Geographic scope
•
As of October 2008, Marriott International had a diverse portfolio of over 3,000 travel accommodation
outlets representing 19 brands in 67 countries and territories.
•
North America remained at the core of Marriott International's operations in 2007. It is worth noting,
however, that the company is a top ranked player in nearly all regions due to its strong presence in key
destination countries.
•
In early 2008, for example, it operated six hotels in India – the JW Marriott Hotel Mumbai, the Goa
Marriott Resort Panjim, the Hyderabad Marriott, the Renaissance Mumbai Hotel & Convention Center, the
Mumbai Lakeside Chalet Marriott Executive Apartments and the Courtyard by Marriott Chennai ; two
hotels in Vietnam – the Renaissance Riverside Saigon and the New World Hotel Saigon; and seven hotels
in Thailand – the JW Marriott Hotel Bangkok, the Bangkok Marriott Resort & Spa, the Courtyard by
Marriott Bangkok, The Mayfair, Bangkok Marriott Executive Apartments, the JW Marriott Phuket Resort
& Spa, the Hua Hin Marriott Resort & Spa and the Pattaya Marriott Resort & Spa.
Marketing appeal
•
Through 2007 and into 2008, Marriott International launched advertising campaigns for its Marriott brand.
Focused on business travellers, the advertisements aimed at making a rational and emotional connection
with guests. The advertisements addressed Marriott's ability to adjust to distinct cultures while still
providing a synchronised performance across its brands. The advertisements were featured at airports,
targeted television stations such as CNN and select airlines.
•
In the same period, Marriott International launched a campaign featuring its Residence Inn brand, which
focuses on extended stay guests. Also through artistic talent (trapeze artists, fire-eaters, etc.), the
advertisements represented the guest's ability to manage an extended stay through Residence Inn's
amenities, all of which are suitable and specific to this audience. It also featured the brand's Innfusion
décor, featuring different zones in the room for extended stay travellers: sleeping, eating, working, relaxing.
Growth Opportunities
•
Travel accommodation sales are expected to maintain an upward trend but develop at a slower pace
compared to the review period, growing at a compound annual growth rate (CAGR) of 5%, to reach
US$684 billion in 2012.
•
In general, international expansion is a way for large US-based chains like Marriott International to combat
a downturn in travel in the US, which has been hard hit by a decline in the economy, and cultivate loyalty
among travellers. As a result, the company is expected to continue to develop its international pipeline
aggressively.
Emerging markets
•
In order to offset the negative impact of such a challenging business environment and to capitalise on the
opportunities present in emerging markets, Marriott International has developed a strong pipeline
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development strategy for the next three years. According to industry sources, more than 60% of its fullservice pipeline is outside the US.
•
In 2007/2008, the company announced the following pipeline developments:
•
INDIA: 18 new properties and one expansion with a total of more than 4,500 rooms in Bangalore,
Chennai, Pune, Kolkata, Chandigarh, Ahmedabad, Amritsar, Gurgaon, Hyderabad, Kolkata New
Town, Noida, and the Mumbai International Airport scheduled to open through 2011.
•
CHINA: 18 new properties in Shenzhen, Beijing, Hangzhou, Macao, Hong Kong and Guangzhou
scheduled to open through 2012.
•
VIETNAM: The luxury JW Marriott brand is set to be introduced in Danang by 2011.
•
THAILAND: 10 new properties in Bangkok, Phuket and Hua Hin scheduled to open through 2010.
•
MIDDLE EAST: 39 new properties are scheduled to open through 2011. Marriott International is also
expected to manage nine new properties in the Kingdom of Saudi Arabia starting in 2010. The new
properties will be located in Riyadh, Jeddah, Dammam and Jubail and represent The Ritz-Carlton
Hotels, The Ritz-Carlton Residences, Marriott Hotels & Resorts, Marriott Executive Apartments and
Courtyard by Marriott brands.
•
LATIN AMERICA and CARIBBEAN: Marriott International has announced plans to open hotels in
Ecuador, Honduras, Peru, Suriname and Trinidad & Tobago by 2010.
•
MEXICO: In July 2008, Marriott International announced plans to add 29 hotels to its Mexican
portfolio in the next five years.
•
It is important to note, however, that the global economic downturn is hindering expansion plans,
particularly as consumer confidence softens and demand for travel accommodation falls.
•
Asia-Pacific is forecast to be the fastest growing regional hotels market over the 2007-2012 period, with a
CAGR of 8%. Its dynamic performance is set to be driven by major emerging markets, most notably China
and India, which are seeing economic expansion, developing travel infrastructures, growing middle classes
and an increase in foreign tourism generate demand for hotels. Along with Thailand, these are key target
markets in the company's plans to expand its hotels network in the region by the end of 2010.
•
Marriott International is in a strong position to exploit rapid development in Asia-Pacific because it has
already established a significant foothold in the region. According to Ed Fuller, president and managing
director of international lodging for Marriott International, the company's capacity to have such a strong
pipeline development in the region is founded in part on the success that its existing portfolio is enjoying.
He states that, "When developers consider a hotel management company for their asset, they know Marriott
will deliver".
Developed markets
•
Marriott International also continues to expand its presence in developed markets. In October 2007, for
example, the company announced plans to expand its presence significantly in Scandinavia through a
multiple franchise agreement with Scandinavian Hospitality Group. The agreement is expected to result in
the opening of 15 hotels under the Marriott, Renaissance, Courtyard and Marriott Executive Apartments
brands in Sweden, Norway and Finland by the end of 2013. Marriott International's first hotel in
Scandinavia, the Copenhagen Marriott, opened in 2001.
Unique experience
•
In core developed markets, the shift in consumer demand towards lodging that provides an individuated
experience with an emotional aspect is set to provide growth opportunities during the forecast period. It is
worth noting, however, that leading industry players such as Marriott International are already considering
these opportunities and developing products such as "Edition", a new genre of lifestyle brand that combines
an intimate and unique travel accommodation experience.
•
Each distinct property for the Edition brand is expected to emphasise design, quality, originality,
authenticity and character, while delivering impeccable personalised service. "Edition" luxury hotels are
planned for Paris, Madrid, Costa Rica, Miami, Washington, Chicago, Scottsdale (Arizona) and Los
Angeles. The first properties are scheduled to open by 2010.
Loyalty programme
•
With over 28 million members worldwide, the Marriott Rewards programme is the world's longest
continuously running hotel rewards programme. Members of Marriott Rewards account for approximately
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51% of total room nights, and the programme is an effective way for Marriott to market leisure stays, new
hotels and business and social events. Besides earning free nights and free flights, membership in Marriott
Rewards offers priority check-in, room guarantees and a newsletter, including member-only special offers.
Frequent travellers also enjoy elite benefits such as upgrades, special bonuses and gifts.
•
According to research conducted in June 2007, the Marriott Rewards programme allows guests to enjoy the
benefits 30% faster than other leading hotel loyalty programmes. Results were based on seven nights at
Starwood, Hilton, InterContinental Hotels Group and Hyatt hotels of similar quality and points earned on
dollars spent and assumed standard award offerings for base level members.
Limited Potential
•
The mature Western European market is expected to post the slowest regional growth in hotels over the
forecast period, with a projected CAGR of only 1%. What growth there is, is expected to be driven by an
increase in the number of short breaks spurred by the growth in low-cost airlines and a rising number of
visitors from America and Asia.
•
A weakening travel spending scenario in Europe is of concern to Marriott International. The weak summer
revPars in 2008 confirm that not only leisure travellers are cutting back on spending, but also that corporate
travel is also feeling the pressures of the economic slowdown and forced to reduce travel costs.
•
After Western Europe, Australasia and North America are expected to develop at a CAGR of 4% over the
2007-2012 period. Such slow growth is set to derive from general economic and business conditions which
adversely impact the income levels of potential travellers and a rising lack of confidence in strong markets
like the US. This is likely to limit future operations, particularly given Marriott International's strong
presence in North America.
Table 1
Marriott International Inc: World Sector Sales Performance 2007
US$ million
Hotels
Source:
Note:
Table 2
Market
size
Market
% CAGR
2002-2007
Market
% CAGR
2007-2012
% of
company
sales
Company
share
2007
Global
ranking
2007
392,199.9
8.3
4.7
100.0
4.6
1
Euromonitor International
Percentage of company sales in each sector is calculated from rsp sales within this market in 2007. This figure
may be slightly distorted by double-counting products which appear in more than one sector
Marriott International Inc: Hotels Regional Sales Performance 2007
US$ million
Market
size
Market
% CAGR
2002-2007
Market
% CAGR
2007-2012
% of
company
sales
Company
share
2007
Regional
ranking
2007
Western Europe
Eastern Europe
North America
Latin America
Asia-Pacific
Australasia
Middle East and Africa
121,778.7
14,683.3
106,016.5
36,968.7
86,578.0
3,303.8
22,870.9
6.7
16.0
7.3
10.4
10.0
12.6
8.1
1.4
5.7
4.4
6.9
8.3
4.4
4.5
4.4
1.1
89.1
1.2
2.9
0.7
0.7
0.6
1.3
15.1
0.6
0.6
3.6
0.5
10
2
1
6
7
8
9
WORLD
392,199.9
8.3
4.7
100.0
4.6
1
Source:
Note:
Euromonitor International
Percentage of company sales in each region is calculated from rsp sales within this market in 2007
COMPANY STRATEGY
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Strategic Objectives and Challenges
•
Marriott International relies on its scale and "Global Reach. Personal Service." strategy, gaining members
through its loyalty programme and continuously expanding its hotel network.
•
Marriott International is also focusing on more individuated properties, targeted at an emerging class of
travellers who are seeking distinctive travelling experiences. The partnership with Nickelodeon to build
upscale resorts featuring state-of-the-art spas, pools, water parks and live entertainement with Nick
characters as well as the launch of "Edition" are great examples of this.
Lack of infrastructure and higher costs hinder international expansion
•
Marriott International is expected to face many challenges when building abroad, which could limit
expansion or force companies to partner with local companies. For example, corruption continues to
hamper the business environment in Asia-Pacific, being widespread in many countries in the region
including Indonesia, the Philippines, Vietnam and China. This imposes additional expense on businesses
and raises the cost of doing business. Consumers are also affected by corruption since higher costs translate
into higher prices.
•
The lack of adequate infrastructure is another major obstacle to business and economic development in the
Asia-Pacific region. Apart from markets such as Hong Kong, Singapore, Japan, Taiwan and South Korea,
the rest face infrastructure problems. Growing urbanisation, increasing consumption and expanding
economic activities have put strains on existing infrastructure in these countries.
•
The rising cost of real estate in dynamic markets like China, Vietnam, India and Russia has made it harder
to find good property for less expensive brands. In an attempt to overcome this, Marriott International must
consider strategic partnerships with local real estate companies and/or even consider moving into second
tier cities.
Ownership Events
•
Marriott International has continued to manage the hotels when Delek Real Estate, an Israeli property
company, and its partners agreed to buy 47 Marriott operated hotels from Royal Bank of Scotland for
around US$2.1 billion in 2007.
•
In 2006, Marriott International sold its interest in the 50/50 joint venture with Whitbread Plc, which
comprised 46 hotels consisting of more than 8,000 rooms, for US$164 million. The company continued to
manage the hotels under the Marriott Hotels & Resorts and Renaissance Hotels & Resorts brands, and
continued to do so when Whitbread sold the hotels to Royal Bank of Scotland later in the year for £951.4
million (US$1.7 billion).
Table 3
Marriott International Inc: World Shares & Rankings in Travel & Tourism by Sector 20062007
% retail value rsp
Hotels
Source:
Share
2006
Ranking
2006
Share
2007
Ranking
2007
Sector
growth
2006/2007
Company
growth
2006/2007
4.6
1
4.6
1
4.9
5.5
Euromonitor International
Table 4
Marriott International Inc: World & Regional Shares in Travel & Tourism by Sector 2007
% retail value rsp
Hotels
 Euromonitor International
WE
EE
NA
LA
As
Au
0.6
1.3
15.1
0.6
0.6
3.6
Af/ME
WO
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Marriott International Inc - Travel and Tourism
Hotels
Source:
Note:
Key:
World
0.5
4.6
Euromonitor International
– Signifies no presence or negligible share
WE=Western Europe; EE=Eastern Europe; NA=North America; LA=Latin America; As=Asia-Pacific;
Au=Australasia; Af/ME=Africa/The Middle East; WO=World
COMPANY STRUCTURE
Marriott International Inc
•
Based in the US, Marriott International is a global operator and franchiser of hotels and related facilities,
with a network of over 3,000 travel accommodation outlets representing 19 brands in 67 countries and
territories. Its operations are grouped into six business segments: North American Full-Service Lodging,
North American Limited-Service Lodging, International Lodging, Luxury Lodging and Timeshare.
•
As of December 2007, Marriott International's brand protfolio included 520 Marriott Hotels & Resorts,
Marriott Conference Centers or JW Marriott Hotels & Resorts properties; 68 Ritz-Carlton hotels; 141
Renaissance hotels; 767 Courtyard hotels; 537 Fairfield Inn properties; 177 SpringHill Suites properties,
546 Residence Inn hotels; 141 TownPlace Suites properties; two Bulgari Hotel & Resorts properties, 61
timeshare properties; and 39 corporate housing and residential units.
•
Marriott International earns base, incentive and franchise fees upon the terms of its management and
franchise agreements. It also generates revenue through its timeshare operations by selling timeshare
interval, fractional and whole ownership properties, operating resorts and financing customer purchases of
timesharing intervals. In addition, the company earns revenues from the limited number of hotels it owns
and leases, as well as generating revenues and tax credits from its synthetic fuel operations.
Summary 1
Marriott International Inc: Travel & Tourism Key Facts
Company name & status:
Marriott International Inc
Headquarters:
USA
Sector involvement (2007):
Travel Accommodation
Region involvement (2007):
North America, Western Europe, Eastern Europe,
Latin America, Asia-Pacific, Australasia, Middle East
and Africa
Source:
Euromonitor International from company reports
Production and Distribution
•
The adoption of new technologies and the continued focus on global branding are creating a larger
commitment to the internet, with Marriott International continuously enhancing its online presence to boost
overall distribution.
•
In 2008, Marriott International upgraded its Spanish language website by adding a new functionality which
allows Spanish-speaking Marriott customers to compare hotel accommodation in their language. The new
function allows customers to search for travel accommodation based on their preference of hotel category,
or amenity.
BRAND ASSESSMENT
Brand Strategy
•
Marriott International aims to develop its brands through a focus on global presence and quality, the
delivery of superior customer service with an emphasis on guest satisfaction, its Marriott Rewards loyalty
programme, an information-rich and easy-to-use website, a multi-channel reservation system and the
provision of a variety of amenities, including meeting and banquet facilities, fitness centres, spas,
restaurants and high-speed and wireless internet access.
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•
Along with hotel owners and franchisees, the company continues to invest in its brands through new and
renovated properties, and new room and public area designs, as well as enhanced amenities and technology
offerings.
•
In order to adapt its brands to the changing conditions of the modern hotels market, Marriott International 's
marketing activity is looking to break through to customers through new media. It has developed special
interactive websites that allow visitors to experience redesigned guest rooms and posts news and brand
innovation on YouTube to reach a broader and younger customer base. Moreover, 2007 saw the company's
CEO, JW Marriott, launch a blog covering topics including immigration reform and the reduction of global
warming.
Marriott Hotels & Resorts
•
With 520 hotels worldwide, including around 380 in the US, Marriott Hotels & Resorts is the flagship
brand of Marriott International Inc. In 2007, it held a global value share of almost 2%. The brand is targeted
to what Marriot calls "Achievement Guests", people who are driven to perform whether it is for business or
leisure purposes, offering medium- to high-price accommodation.
•
Through 2007 and into 2008, Marriott International launched adverising campaigns for its Marriott brand.
Focused on business travellers, the advertisements aimed at making a rational and emotional connection
with guests. The advertisements addressed Marriott International's ability to adjust to distinct cultures while
still providing a synchronised performance across its brands. Advertisements were featured at airports,
targeted television stations such as CNN and select airlines.
•
This full-service brand is currently transforming its public areas to encourage guests to work and socialise
through the adoption of the latest design, technology, food and beverage offerings. According to company
sources, the new public areas are more open and bright, offer a casual ambiance and a welcoming
environment for guests.
•
Marriott Hotels & Resorts brand is set to manage three hotels in Pune, India, which are scheduled to open
over the next three years. The hotels, representing 833 new luxury, deluxe and upper-moderate quality guest
rooms, underline the brand's key role in Marriott's expansion in major emerging markets.
•
In 2008, the brand opened its 11th hotel in Beijing under a management agreement with Beijing Huhua
Real Estate Development Co, Ltd. Also in China, the brand is expected to open an enormous, 968-room
hotel as part of the Macao Studio City complex, which is taking shape with entertainment, retail, gaming
and studios in Macao.
Courtyard
•
Courtyard is the second largest Marriott International brand in terms of value sales. With 767 properties,
with 693 located in the US and 74 abroad, it is mainly targeted at businesses travellers and operates in the
mid-scale, full-service segment. Most recently, however, industry experts believe the brand is maturing and
finding it hard to lure customers back.This is explained by a fierce competitive environment, packed with
exclusive offers and increasingly modern accommodation, particularly at a time when business travellers
want to cut costs.
•
After lauching renovated guest rooms with new bedding and pillows, high-speed internet access and
ergonomic desks in the latter part of the review period, Courtyard enhanced the guest experience in its
lobbies, looking to offer more technology, food options and social opportunities.
•
Coutyard is rapidly developing outside the US, entering new markets such as the Czech Republic, El
Salvador, Japan and Thailand.
•
In Asia-Pacific, Marriott International added the Courtyard brand to its developing presence in Thailand
and Hong Kong in 2008. The 318-room Courtyard by Marriott Hotel Bangkok was Marriott's ninth property
in Thailand and fourth in Bangkok. The 245-room Courtyard by Marriott Hotel Hong Kong opened under a
management agreement with Tsinlien Realty Ltd and was its fourth hotel in Hong Kong. This is a major
move made by Marriott International to revitilise the Courtyard brand and benefit from the booming travel
and tourism industry in the region.
•
The brand is also expanding in Latin America to capitalise on the region's growing travel accommodation
industry. In 2007, it opened the 133-room Courtyard by Marriott San Salvador Hotel in El Salvador. The
hotel was the first Courtyard-branded hotel to open in El Salvador and the third to open in Central America,
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Marriott International Inc - Travel and Tourism
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after the Courtyard by Marriott San Jose in Costa Rica and the Courtyard by Marriott Hotel Punta Pacifica
in Panama.
Residence Inn
•
A pioneer in the so-called "extended stay" market, the Residence Inn by Marriott is targeted at business
travellers seeking mid-priced, apartment-style accommodation for longer stays. Early in 2008, it had a total
of 546 properties.
•
Between 2007 and 2008, Marriott International launched a campaign featuring its Residence Inn brand.
Through artistic talent (trapeze artists, fire-eaters, etc.), the advertisements represented the guest's ability to
manage an extended stay through Residence Inn's amenities, all of which are suitable and specific to this
audience. It also featured the brand's Innfusion décor, featuring different zones in the room for extended
stay travellers: sleeping, eating, working, relaxing.
•
In 2008, Marriott International added the Residence Inn brand to its developing presence in the Caribbean.
The 100-room Residence Inn by Marriott Port of Spain, Trinidad, set to be managed under an agreement
reached with CAL Hospitality Investments Ltd, is expected to open in 2010.Hopefully, by then, the
Caribbean travel and tourism industry will be fully recovered from the economic downturn and natural
disasters that affected overall demand in 2007- 2008.
Renaissance Hotels & Resorts
•
The Renaissance Hotels & Resorts brand has 141 hotels in 28 countries, split roughly evenly between its
North American and international networks. Additionally, UAL Corporation is investing in premium
services to capitalise on higher profit margins and it is targeted mainly at business travellers, who search for
unique mid-priced accommodation.
•
Aside from offering features such as swimming pools, business library and centre, fitness centres, and
conference and banquet facilities, Renaissance aims to differentiate itself from rivals through its boutique
ambience, interior design and "street" restaurants. Moreover, the brand is looking to enrich its environment
by forming partnerships with local artists and art institutions in order to provide a wide range of local,
modern and classical art in its hotels.
•
Its portfolio also includes the related Renaissance ClubSport brand, which is a lifestyle concept combining
the boutique-style ambience of Renaissance Hotels & Resorts with upscale, full-service fitness clubs. The
fitness club is complimentary for guests and offers memberships to local communities.
Ritz-carlton
•
The Ritz-Carlton is a luxury travel accommodation brand that offers exclusive service and amenities to its
customers. Early in 2008, it had a total of 68 properties. Nevetheless, this figure is set to increase as
Marriott International plans to double its Ritz-Carlton portfolio over the next eight years.
•
In an attempt to capitalise on the ever-growing eco-tourism trend, Ritz-Carlton is making special efforts to
include eco-tours in its offerings, including visits to farms and natural reserves.
•
Between 2007 and 2008, Ritz-Carlton launched a marketing campaign along with American Express to
reinforce its luxury brand positioning. The new campaign featured three sleek and provocative short films
that showed Ritz-Carlton was at "the top of the game" in both service and luxury, and comprised an
ambitious integrated media with online videos. Whether traditional Ritz-Carlton guests liked it is yet to be
determined. Nevertheless, industry experts stated that the Ritz-Carlton promotional efforts were not strong
enough, asking the question of whether a lot of people were exposed to the campaign and actually saw the
films.
•
In 2007, it accelerated its pipeline development strategy with hotel openings in Beijing, Dallas, Dublin,
Vail, Moscow and Tokyo. Ritz-Carlton also saw some technological improvement with the addition of
plasma TVs, wireless internet etc, as Marriott deepened its commitment to attracting Generation X families.
APPENDICES
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Marriott International Inc - Travel and Tourism
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Financial Summary
Table 5
Marriott International Inc: Financial Summary 2003-2007
US$ million
Net sales
% growth net sales
Operating profit
% growth operating profit
Net profit
% growth net profit
Operating margin (%)
Net margin (%)
Shareholders' equity
Long-term debt
Long-term debt/equity
ratio (%)
Earnings per share (US$)
Number of employees
Net sales per employee
Source:
Note:
2003
2004
2005
2006
2007
9,014
7.1
377
17.4
502
81.2
4.2
81.2
3,838
1,391
-
10,099
12.0
477
26.5
596
18.7
4.7
18.7
4,081
836
1.31
11,550
14.3
555
16.3
669
12.5
4.8
12.5
3,252
1,681
1.55
12,160
5.3
1,011
82.2
608
-9.1
8.3
5.0
2,618
1,818
1.50
696
14.4
1,429
2,790
-
128,000
0.07
133,000
0.08
1.45
143,000
0.08
1.41
151,000
0.08
1.75
300,000
-
Euromonitor International from company reports
Year end December
Company Background
Summary 2
Marriott International Inc: Historical Development
Year
Topic
Description
2008
Loyalty Programme
Marriott Rewards introduces no
blackout dates.
2008
Hotel Development
Marriott International set to
introduce a luxury JW Marriott
brand at Danang, Vietnam.
2008
Vacation Ownership
Grand Residences by Marriott
starts offering holiday home
options in South Lake Tahoe,
(California), Panama City Beach
(Florida), Lihue (Kauai) and
London.
2008
Hotel Development
Marriott International announces
plans to open hotels in Ecuador,
Honduras, Peru, Suriname and
Trinidad & Tobago by 2010.
2008
Hotel Development
Marriott International announces
plans to open three more
Courtyard by Marriott hotels in
France over the next three years.
2008
Loyalty Programme
Marriott Rewards names
Aeromexico as its new airline
partner, which allows members to
earn Aeromexico Club Premier
miles when they stay at Marriott
International hotels in 65 countries.
2008
IT Development
Marriott International enhances the
search capability of its Spanish
Language website,
www.latinoamerica.marriott.com,
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Marriott International Inc - Travel and Tourism
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by adding a new functionality,
which allows Spanish-speaking
Marriott customers to compare
hotel accommodations in their
language. The new function allows
customers to search for travel
accommodations based on their
preference of hotel category, or
amenity.
2008
Loyalty Programme
Marriott International relaunches its
MegaBonus promotion in August,
whereby members could earn up to
25,000 bonus points when using a
Visa card to pay for travel
accommodation.
2008
Hotel Development
Marriott International set to open
the seventh luxurious JW Marriott
hotel in India by 2009.
2008
Hotel Development
Marriott International announces
plans to add 29 hotels to its
Mexican portfolio in the next five
years.
2008
Other
Marriott International launches the
Global Language Learning
programme, with 30 new language
offerings to employees.
2008
Hotel Development
Marriott International announces
plans to expand its China portfolio
with 18 new hotels through 2012.
2008
Loyalty Program
Marriott Rewards starts offering
members the possibility to redeem
points for trips on 17 cruise lines.
2008
Strategic Agreement
Marriott International is expected to
manage nine new properties in the
Kingdom of Saudi Arabia beginning
in 2010.
2008
Hotel Development
Marriott International announces
plans to expand its portfolio in the
Middle East from 26 to 65 hotels
through 2011.
2008
Hotel Development
Marriott International opens
Courtyard by Marriott Hong Kong.
2008
Hotel Development
Marriott International set to expand
its presence in India with the
addition of three new hotels in
Kolkata, Chandigarh and
Hyderabad by 2011.
2008
Hotel Development
Marriott International announces
plans to expand its presence in
Norway and Sweden with the
addition of six new hotels by 2010.
2008
Hotel Development
Marriott International set to
introduce family-friendly, budget
savvy hotels at Phuket and Hua
Hin.
2008
Hotel Development
Marriott International set to
introduce its deluxe Marriott brand
in Thailand with a resort in Phuket.
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Marriott International Inc - Travel and Tourism
World
2007
Hotel Development
Marriott International announces
plans to open 59 hotels in nine
Asian markets, including multiple
openings in China, India and
Thailand, by the end of 2010.
2007
Other
Courtyard, Residence Inn, Fairfield
Inn, TownePlace Suites and
SpringHill Suites brands eliminate
Wi-Fi charges for guests in lobbies
and other public areas in order to
target on-the-go customers and
boost efforts to develop multifunctional public interiors.
2007
Advertising
Marriott International's extendedstay Residence Inn brand launches
a distinctive new advertising
campaign to showcase its new
Innfusion décor.
2006
Listings
Marriott International announces it
is to withdraw its common stock
from listing on the Pacific
Exchange, Inc., now known as
NYSE Arca, Inc., and the
Philadelphia Stock Exchange, Inc.
2006
Hotel Divestment
Marriott sells four hotels totalling
109 rooms in continental Europe to
the Whitehall Street Global Real
Estate Limited Partnership. In
addition, the Whitehall company
agrees to purchase the 150-room
Courtyard by Marriott Colombes
(France) under construction.
2006
Hotel Divestment
Marriott International announces
the sale of its interest in the 50/50
joint venture with Whitbread, which
has 46 hotels consisting of more
than 8,000 rooms. The Royal Bank
of Scotland acquires the joint
venture in a transaction with a joint
venture enterprise.
2005
Hotel Divestments
Sale of a portfolio of land
underlying 75 Courtyard by Marriott
hotels for US$246 million in cash to
CBM Land Joint Venture limited
partnership.
2004
Hotel Development
Ramada International opens 200th
hotel in Amsterdam.
2004
Brand Divestment
Sells Ramada International brand
to Cendant.
2004
Loyalty Programme
Marriott Rewards welcomes its
20,000,000th member.
2003
Business Divestment
Completes sale of Senior Living
Service Communities and Marriott
Distribution Services.
2003
Hotel Development
Courtyard opens 500th hotel in
Minneapolis, USA.
2003
Hotel Development
SpringHill Suites opens 100th hotel
in Texas, USA.
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Marriott International Inc - Travel and Tourism
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2002
Hotel Development
2,500th hotel opens.
2002
Business Divestment
Announces sale/spin-off of its
Senior Living Services
Communities and Marriott
Distribution Services.
2002
Hotel Development
Opens 500th extended-stay hotel,
representing a total of 400
Residence Inns and 100
TownePlace Suites.
2002
Hotel Development
Launches Marriott Grand
Residence Club.
2002
Hotel Development
Fairfield Inn opens 500th hotel in
Rogers, Arkansas, USA.
2000
Hotel Development
2,000th Marriott property opens.
2000
Joint venture
Forms joint venture with Hyatt and
Club Corporation to create the
largest and most comprehensive
electronic procurement network.
1999
Strategic Acquisition
Marriott International acquires
ExecuStay corporate housing
company, which subsequently
acquires Executive Living Inc of
Ohio, USA.
1999
Hotel Development
Marriott Vacation Club International
launches moderately priced resorts
Horizons by Marriott Vacation Club
and luxury resorts The Ritz-Carlton
Club.
1998
Hotel Development
1,500th hotel opens.
1998
Other
Sodexho Alliance acquires Marriott
International's foodservice and
facilities-management businesses.
1998
Hotel Development
Launches SpringHill Suites brand.
1997
Strategic Acquisition
Acquires the Renaissance Hotel
Group and introduces TownePlace
Suites, Fairfield Suites and Marriott
Executive Residences brands.
1995
Strategic Acquisition
Marriott acquires Ritz-Carlton Hotel
Company, LLC.
1993
Other
Company splits into Marriott
International and Host Marriott
Corporation.
1990
Other
Pathways to Independence,
Marriott's Welfare to Work
programme, established.
1989
Hotel Development
500th hotel opens in Warsaw,
Poland.
1989
Other
Marriott Foundation for People with
Disabilities established.
1987
Strategic Acquisition
Acquires Residence Inn Company
and enters low-mid-price lodging
with Fairfield Inn.
1985
Other
Opens Marriott Distribution Center
in Savage, Maryland, USA.
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Marriott International Inc - Travel and Tourism
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1984
New Product Development
Enters holiday timeshare and
senior-living accommodation sales.
1983
Hotel Development
First Courtyard hotel opens.
1982
Strategic Acquisition
Acquires Host International Inc.
1982
Strategic Acquisition
Acquires Gino's, which it converts
to Roy Rogers.
1981
Hotel Development
Opens 100th hotel in Hawaii.
1979
New Headquarters
Builds new corporate headquarters
in Bethesda, Maryland.
1976
Theme Parks Established
Opens two Great America theme
parks in Santa Clara, California,
and Gurnee, Illinois, USA.
1975
Hotel Development
Opens first European hotel in
Amsterdam, Netherlands.
1973
Hotel Development
Company obtains first hotel
management contracts.
1969
Hotel Development
Marriott's first international hotel
opens in Acapulco, Mexico.
1967
Corporate Name Change
Corporate name changed from Hot
Shoppes Inc to Marriott
Corporation.
1967
Company Expansion
Marriott opens Fairfield Farm
Kitchens, a food production and
purchasing facility in Beaver
Heights, Maryland, USA.
1967
Other
Acquires Camelback Inn, its first
resort property.
1967
Strategic Acquisition
Buys Bob's Big Boy Restaurants.
1965
Marriott Foundation
Marriott Foundation established.
1957
First Hotel Established
Marriott opens first hotel, 365-room
Twin Bridges Motor Hotel in
Arlington, Virginia.
1955
Other
Marriott Food Service gains first
institutional and school feeding
contracts at Children's Hospital and
American University.
1953
Other
Marriott stock becomes public and
sells out in two hours.
1945
Food Service Contract
Hot Shoppes opens first cafeteria
and gains government foodservice
contract.
1945
Other
In-Flite gains first airport terminal
foodservice contract at Miami
International Airport.
1939
Other
Marriott gains foodservice
management contract with US
Treasury.
1937
Catering Services
Hot Shoppes opens In-Flite
Catering division to offer airline
foodservice to Capital, Eastern and
American Airlines.
1934
Other
Hot Shoppes expands to Baltimore,
USA.
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Marriott International Inc - Travel and Tourism
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1929
Other
Hot Shoppes Inc officially
incorporated and introduces curb
service.
1927
Foundation
J Willard Marriott and his wife Alice
open a root beer and hot Mexican
food stand The Hot Shoppe in
Washington, USA.
Source:
Euromonitor International
Summary 3
Marriott International Inc: Subsidiaries 2007
Company
Country
Ritz-Carlton Hotel Co LLC, The
Singapore
Marriott Vacation Club International
USA
Source:
Euromonitor International
Summary 4
Marriott International Inc: Travel & Tourism Brands 2007
Brand Name
Sector and subsector(s)
Courtyard
Travel accommodation (Hotels)
Fairfield Inn
Travel accommodation (Hotels)
Marriott
Travel accommodation (Hotels)
Renaissance
Travel accommodation (Hotels)
Residence Inn
Travel accommodation (Hotels)
Ritz-Carlton
Travel accommodation (Hotels)
SpringHill Suites
Source:
Travel accommodation (Hotels)
Euromonitor International
Summary 5
Marriott International Inc: Company Locations
Location
Country
Activity
North America
USA
Travel Accommodation
Western Europe
France, Germany, UK
Travel Accommodation
Asia-Pacific
China, Japan, South Korea
Travel Accommodation
Latin America
Argentina, Brazil, Chile, Venezuela,
Peru
Travel Accommodation
Source:
Summary 6
Euromonitor International
Marriott International Inc: Websites
Name
Country
Website address
Interactive website
USA
ExperienceMarriott.com
Main corporate website
USA
marriott.com
Joy-Your Dream Wedding
USA
www.joyweddingsbymarriott.com
Marriott ExecuStay
USA
www.execustay.com
Marriott International
France
marriott.fr
Marriott International
China
marriott.com.cn
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Marriott International Inc - Travel and Tourism
World
Marriott International
Japan
marriott.co.jp
Marriott International
South Korea
marriott.co.kr
Marriott International
Germany
marriott.de
Marriott International
United Kingdom
marriott.co.uk
Marriott International
Argentina
marriott.com.ar
Marriott International
Brazil
marriott.com.br
Marriott International
Chile
marriott.cl
Marriott International
Costa Rica
marriott.co.cr
Marriott International
Dominican Republic
marriott.com.do
Marriott International
Mexico
marriott.com.mx
Marriott International
Peru
marriott.com.pe
Marriott International
Venezuela
marriott.co.ve
Marriott Vacation Club
USA
www.vacationclub.com
The Ritz-Carlton
USA
www.ritzcarlton.com
The Ritz-Carlton Club
USA
www.ritzcarltonclub.com
Source:
Euromonitor International
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