Company name: Marriott International, Inc.
Founder: J. Willard Marriott & Alice Marriott
Number of Locations: 6,520
Total Assets: $23.69 billion
Revenue: $20.75 billion
Net Income: $1.90 billion
Country: United States of America
Headquarter: Bethesda, Maryland
Number of employees: 176,000
Marriott International, Inc. is a lodging company, that engages within the operation and franchise of residential, hotel, and timeshare properties. It operates through the subsequent business segments: North America Full-Service; North America Limited-Service; Asia Pacific; and other countries. The North America Full-Service phase includes luxury and premium brands set within the U.S. and Canada. The North America Limited-Service phase contains select brands set within the U.S. and Canada. The Asia Pacific phase focuses altogether whole tiers in the Asia Pacific region. The corporate was founded by J. Willard Marriot and Alice Sheets Marriott in 1927. The headquartered of Marriott International, Inc. is in Bethesda, Maryland.
Marriott International, Inc. formed in 1993 once Marriott Corporation split into 2 separate companies: the world’s leading lodging and contract services company. Marriott International has 2 operational groups: Marriott Lodging, that generates about 60% of company revenue, and also the Marriott Service group, its contract services operation. Marriott Lodging manages or franchises more than 1,350 lodging properties beneath ten hotel brands worldwide. It conjointly operates quite thirty timeshare vacation properties through Marriott Vacation Club International, and 25 U.S. conference centers through Marriott Conference Centers. The Marriott Service group includes Marriott Management Services, that provides food and facilities management for business, education, and health care clients; Marriott Senior Living Services, that manages 75 senior living communities; and Marriott Distribution Services, that operates 15 distribution centers nationwide that give food and connected merchandise to internal Marriott and external purchasers.
North America Full-Service generates 60% of Marriott International’s total revenue. It includes Marriott’s luxury and premium brands (JW Marriott, The Ritz-Carlton, W Hotels, and others) set within the North American nation and Canada.
The North America Limited-Service phase accounts for 15% of sales and consists of brands like curtilage, Residence hostelry, Fairfield hostelry & Suites, et al within the North American nation and Canada.
The Asia/Pacific phase, that has hotels in the Republic of Fiji and Japan, accounts for around fifth of sales. the opposite International phase covers Marriott’s non-North America and Asia/Pacific properties, in countries across Latin America, Europe, Africa, and also the Caribbean; it generates more than 10% of revenue.
More than 55% of Marriott International’s properties are international. The company has operations in additional than one hundred twenty countries within the Americas; the United Kingdom and Ireland; the Middle East and Africa; Continental Europe, Australia, and Asia.
Marriott International’s selling activities embody email, online advertising, and communicating mailing. It encourages cross-brand loyalty via a point-based membership theme supported cash spent at hotels, on timeshare intervals, halfway possession, and residential merchandise.
Marriott International’s revenue redoubled steady from when the worldwide money crisis till 2016, once the acquisition of Starwood Hotels & Resorts else billions to its prime line.
In fiscal 2017, revenue grew 34% to $22.9 billion on the primary full-year contribution from Starwood. alternative growth drivers enclosed growth in transient leisure, folks in hurricane-afflicted areas seeking temporary accommodation, and better demand in Washington, DC. Overall revenue per area globally grew 3.1% to $115.02 and occupancy redoubled 1.4%.
Net income conjointly grew powerfully, up 76% to $1.4 billion — the company’s best sell result. Profits grew due to the Starwood acquisition and better profits per out of their area. As a result, Marriott’s operational income reinforced to $2.4 billion, a 45% increase.
By the early 1980s, Bill Marriott observed that the hotel division wouldn’t be able to maintain its rate by operational solely within the upmarket market. Finding that customers were least happy with middle-priced hotels, Marriott sent researchers bent to discover precisely what customers were willing to provide up in exchange for fewer high-ticket rates.
In 1983, when 3 years of analysis and coming up with, curtilage by Marriott emerged. the primary opened that year close to Atlanta, Georgia. The 150-room, two-story Courtyards failed to supply bellmen, area service, or massive meeting and banquet facilities, however, did supply the high-quality rooms the chain was identified for. prices were conjointly unbroken down by building the hotels in teams of ten to twelve and hiring one management team for every group.
Marriott’s analysis team conjointly indicated that many alternative segments of the residence market might be fashionable. one amongst these was timesharing, that Marriott set to enter by inserting timesharing units close to its resorts. The venture began with the acquisition of yank Resorts group in 1984. By 1989 the company owned four timesharing resorts in Hilton Head, South geographic area, and Orlando, Florida, and was within the method of developing many additional.
Bill Marriott conjointly realized that the company might grow quicker if Marriott failed to own most of its hotels. The company then attended build hotels for later sale, however, preserved management through management contracts. Marriott believed that this technique provided additional fast profit growth and restricted risk whereas permitting more uniform service than franchising.
The acquisition of Starwood added eleven brands to Marriott’s existing nineteen brands, forming an associate unwieldy and overlapping portfolio. It also added an extra client loyalty program. Marriott’s integration of Starwood can involve streamlining its whole portfolio by rolling a number of its weaker brands up into its additional powerful brands within the same niche. the corporate has conjointly consolidated its 3 loyalty programs, Marriott Rewards, Starwood most popular Guest, and Ritz-Carlton Rewards, beneath the Marriott Rewards program. it’ll honor inheritance Starwood points by providing Marriott points at a 3:1 rate. The unified system can enable customers to pay points across all thirty hotel brands.
In 2016 Marriott International acquired Starwood Hotels & Resorts Worldwide in a $13.3 billion deal. The deal gave Marriott International additional hotel properties in Asia, Europe, and Latin America. The 2 companies have combined their several client loyalty programs, and most of the hotels within the portfolio can retain their current stigmatization.