Marriott International, Inc. 2018 Annual Report
Consolidation in the hotel sector is associated with many impacts on hotel branding through mergers and acquisitions. The flowing is my opinion and thought on the case of Marriott’s acquisition of Starwood hotels and resorts. Marriott International had a pivotal year in 2018, and it successfully focused on completing the importance integration of Starwood hotels and resorts. This was done with a better focus to ensure the delivery of exceptional results. This company integration results have been realized in different ways, for instance, and the company witnessed cost improvements and efficiency to the owners of the hotels, it focused on ensuring that there is a high level of satisfaction achieved to the guests.
This merge means further development, Marriott received many valuable loyalty programs that are better drivers for the future development and growth of the company. Starwood has been diligently integrated into the Marriott fully as of now; there are pieces of evidence of also borrowing and applying the Starwood’s operations procedures, their marketing strategies, the sales, and finance organization systems. Moreover, Marriott has fully integrated and put in practice the Starwood’s hotel development organization system and has been useful to this company. The marge has resulted in many developments and guest satisfaction.
According to the report, there was a reduction of legacy Marriott and legacy Starwood hotel operations costs. This was done to ensure that the company has a synergy cost of the properties reduction of loyalty programs charge out rates in the entire system resulted in procurement savings. The hotel administrative and general expenses were also lowered as compared to the previous annual report.
In August 2018, Marriott International came up with one unified loyal brand. It initially had three brands. In February 2019 Marriott International had made Marriot BonvyTM name, this was a to replace the Marriott rewards namely Starwood Preferred Guest (SPG) and The Ritz-Carlton Rewards .as per the report Marriot BonvyTM is explained as program that is basically a traveling program that offers services at the global level, we have a comprehensive portfolio of extraordinary hotel brands and also charming experiences and moments associated with many benefits to the members. Marriot BonvyTM and a cobranded credits are used as a differentiator that offers many choices to the members, inspirations, and opportunities to those willing to travel, To the company this program, helps the management in understanding its performance.
I believe that it somehow appeared complex for the two hospitably companies to merge. Still, as the report shows, there were unlocked values to both shareholder’s customers and even the owners. Becoming one unified Company developed efficient programs such as better property management, loyalty systems, and reservations, they initially had different ones.Another challenge was on creating the 1.5 million webpages, thus involved the migration of many numbers of member information and data records. Though some members and the loyal members could see some errors in the online statements, the company was responsible and returned everything to normal.
The Marriot incl has recently accelerated the enhancement of technology security and systems. This was done with better coordination with law enforcement authorities notifying the members on the interest and reediness to help them as well as assisting the members in transit to the Marriot new unified system. By November, the legacy Starwood guest reservation system was involving 383 million reserved guest records. Marriot company recorded an increase in earnings per share to $6.21; this is approximately a 48% increase as compared to the previous financial year, 2017. The net income for Marriott also increased by 38%. It had a revenue of $2,2 billion.
The Marriot hotel also had an increment of the revenue per room, with 2.6% in 2018. The report is showing that there was an increment of operation margins resulting in improved sales and taxes. In 2018 Marriot, with the franchisees and owners, was able to open approximately 500 hotels. This was the best based on company history. There is are likely hood of increasing the company’s global footprint, and it made more than 1.3 million rooms in more than 130 states. It was also reported that Marriot had debuted brands in Mali, New Zealand, Ukraine, and Lithuania in the previous financial year.
Positioned to Win
The merge of the two companies means that there is likely hood of having increased competitive advantage in the hospitality industry; this puts Marriot in a better place for success. Marriot Bonvy, a robust portfolio, and over 30 distinct brands are making this company on the lead. By the end of 2018, this company reached 125 million members who are highly engaged. The company had an increase of reward redemption in 2018 Marriot Bonv members made half of the rooms nights. The company shows commitments to drive preferences to potential consumers to Marriott brands. It is also showing an improvement in guest satisfaction. Many Marriott hotel is under renovation for better brands Sheraton and Marriott accelerates and delivers better economic returns with intentions to make the company the best. Marriot assets business model focus on the management and franchise resulting from the fine brands. It delivers increased returns on invested capital. There is, therefore, increased shareholders and profits.
Inclusion from the 2018 annual report, Marriot seems to be innovative and growing with a responsibility to serve the world. There is a better social and sustainability impact as this company is focusing on doing good in every direction it has shown an advancement and improvements in its business, commui9teand environment they operate. Interestingly, in like the company’s sustainability integration by opting to remove plastics straws in all the properties, this will help reduce climate change impact.
In august 2018 , Marriott International come up with one unified loyal brand it initially had three brands. In February 2019 Marriott International had made Marriot BonvyTM name, this was a to replace the Marriott rewards namely Starwood Preferred Guest (SPG) and The Ritz-Carlton Rewards .as per the report Marriot BonvyTM is explained as program that is basically a traveling program that offers services at the global level, we have a global portfolio of extraordinary hotel brands and also very nice experiences and moments associated with many benefits to the members.Marriot BonvyTM and a cobranded credits are used as differentiator that offers many choices to the members ,inspirations and opportunities to those willing to travel ,To the company this program helps the management in understanding its performance.
I believe that it somehow appeared complex for the two hospitably companies to merge but as the report shows there were unlocked values to both shareholders customer and even the owners .Becoming one unified Company developed efficient programs such as better property managements, loyalty systems and reservations ,they initially had different ones .
Another challenge was on creating the 1.5 million webpages, thus involved migration of many numbers of the member information and data records. Though some members and loyal member could see some errors in the online statements the company was responsible and returned everything to normal.
The Marriot incl has recently accelerated the enhancement of technology security and systems. This was done with better coordination with law enforcement authorities notifying the members on the interest and reediness to help them as well as helping the members to transit to the Marriot new unified system.by November the legacy Starwood guest reservation system was involving 383 million reserved guest records. Marriot company recorded an increase in earnings per share to $6.21 this is approximately a 48% increase as compared to previous financial year, 2017.The net income for Marriott also increased with 38% it had an income of $2,2 billion .
The Marriot hotel also had an increment of the revenue per room with 2.6% in 2018.the report is showing that there was an increment of operation margins resulting to improved sales and revenues. In 2018 Marriot with the franchisees and owners was able to open approximately 500 hotels this was the best based on the company history. There is are likely hood of increasing the company’s global footprint and it made more than 1.3 million rooms in more than 130 states .It was also reported that Marriot had debuted brands in Mali,Newzealsnd ,Ukraine and Lithumia in previous financial year.
The merge of the two companies means that there is likely hood of having increased competitive advantage in the hospitality industry; this puts Marriot in a better place for success. Marriot Bonvy, strong portfolio and over 30 distinct brands is making this company on the lead. By the end of 2018 this company reached to 125 million members who are highly engaged. The company had an increase of reward redemption in 2018 Marriot Bonv members made half of the rooms nights .The company shows commitments to drive preferences to potential consumers to Marriott brands. It is also showing an improvement of guest satisfaction .Many Marriott hotel are under renovation for better brands Sheraton and Marriott accelerates and deliver better economic returns with intentions to make the company the best.Marriot assets business model focus on the management and franchise resulting from the fine brands it delivers increased returns on invested capitals. There is therefore increased shareholders and returns.
Inclusion from the 2018 annual report ,it Marriot seems to be innovative and growing with a responsibility to serve the world. There is better social and sustainability impact as this company is focusing on dosing good in every direction it has shown an advancement and improvements in its business ,commui9teand environment they operate.Intrestingly in like the companies sustainability integration by opting to remove plastics straws in all the properties this will help reduce climate change impact .
Reference
Marriott International, Inc. 2018 Annual Report (2019) retrieved from https://marriott.gcs-web.com/