Stud Marriott’s code & section
The international accommodation industry has witnessed many changes, the main aspect of this change being the consolidation of the hotel sector. This paper will give my understanding of Marriot Inc. after its acquisition of Starwood Hotels & resort. My personal opinions and thoughts are going to be explained from the Marriott’s 2018 annual report.
Marriott International, Inc. is known as a global operator, licenser of the hotel, franchiser, and timeshare properties using several brand names, offering unique and different prices. Marriott International, Inc. shows an extemporary focus on licensing, management, and franchising. It has the most compelling and largest ranges of brands and also the properties of lodging firms all over the world.
The company is currently having some business segmentation at North America limited services, Latin America, middle east, North America full service, and the Caribbean.
Acquisition of Starwood Hotels & Resorts Worldwide Don't use plagiarised sources.Get your custom essay just from $11/page
According to the annual report Marriott International, Inc records that, 23rd September 2016 was a merger date. The formally called Starwood hotel & resort worldwide, inc. Become an indirect wholly subsidiary that was owned by Marriott International, Inc. This was done through a series of combinations, it was successful, and it means a lot to the Marriott’s in terms of business advancement and development.
To attract many customers and members the hotel companies use, loyalty programs, Marriott International, Inc. come up with a loyalty program that could enhance the sales, marketing of brands, and system reservations. Initially, Ritz-Carlton Rewards, Marriott Rewards, and Starwood Preferred Guest were the main three legacy brands; Marriott developed a combined program to make one unified benefit the Marriott BonvoyTM. The primary loyalty program currently used to make members have access to benefits such as travel, rich benefits, and access to all brands portfolio. This has also increased the members and customers.
The general net income for Marriott inc was $2.2billion in the 2018 annual report. Everyone would expect an increase in total income after a merge of two businesses. Marriott and Starwood merge made Marriott Inc. manage to have a share increase of 48 percent as compared to the 2017 annual report.
In the accommodation industry, it is essential to understand about the system dollar revenue available room (RevPAR). In the 2018 annual report, there was an increase of 2.6%; as a result, there was also an increase in the operating margin. Importantly creation of new branches could be another way the franchisers, owners, and shareholders seek to increase profits at the global level. The Marriott’s expanded by opening up 500 new hotels in 2018.
In my opinion, the acquisition of Starwood has positioned the Marriott to better, and a sign faces a competitive advantage. This will eventually result in success in the accommodation industry, as it led to strengthening the portfolio with brands and innovation such as Marriot Bonvoy.
There are increased resources by Marriott’s readily available for sales, technology, and marketing. Right from The rise of the RevPAR index at Marriott Hotels, which had a positive increase of 7.2 %, this was after the renovation of hotels in North America.
The company has a development pipeline with the signing of over 125,000 rooms by the end of 2018. Marriott brand has approximately a contribution to the world’s economy, having 7% of the market share of open rooms and also 20% of rooms undergoing construction, it is important to appreciate the company’s property level profit increase resulting from productivity gains.
To handle the reservation requests from the guests, in 2018 Marriott inc, lodging brand had operated 22 hotel reservation centers, in different countries and territories. The company owns properties and lease or even shares the space with other business operated properties.
In the hotel industry, employee’s relation is very critical. To avoid any labor disruptions after the merge, Marriott has been loyal to its over 1760000 employees; it worse with contract negotiations to foster a better relationship with the employees.
Marriott’s compliance with environmental provision has resulted in positive impacts on earnings, competitive position, and capital expenditure, making Marriott the best option for many. The consolidation also improved the focus on the hotel on the environmental compliance, this entails, operating or making developments that are subject to national, local regulations governing discharges of the products to the environment. Marriot has been keen to ensure that the provisions like health and safety requirements in brands, the management and use or disposal of any hazardous substance are made expertly; any emission discharges of wastes to environment ensure sustainability.
In case of any merge or accusation in the business, the compilation results to one competitive and robust business in the market. It is for to have benefits to the business owners, the customers, and even the shareholder of the Marriott’s and Starwood after the merge. integration of the two seems interesting since they understand the market better.
Integration of Marriott and Starwood’s initial different strategies on loyalty systems, property management, and system reservation resulted in a stronger and more competitive marketing approaches .For instance, from the report in November, the estimated guests’ record at legacy Starwood reservation was 383 million.
Suspicion and insecurity issues could be common in any business, Marriott and Starwood merger was challenged by this, but the management of Marriott was up to correct the issues and make things back to normal. This was immediately after the customers reported some address issues to the extensive support system, there were efforts done to increase the information technology systems and security systems.
Marriott is using an asset-light business model, which is mostly considering the growth in RevPAR. This has a combination of unit growth, resulting in much earnings, improved cash flow, and an increase in returns to shareholders. Marriott has approximately $3.4 billion returns to shareholders additionally on repurchase and dividend in the year 2018, according to the annual report.
It has accumulated more than $7.0 billion from the time it merged and acquired the Starwood hotel and resort The Company is focused on always being the leader in innovating and growing with unexpected challenges during its role in serving the world. The heart of this business is to have focused and safer hotels where the guests will have a welcoming experi
References
Marriott Bonvoy Hotel Rates, retrieved from: https://www.marriott.com/help/rates/general.mi
Grant Martin, (2019), Marriot Bonvoy, retrieved from: https://skift.com/2019/01/22/marriott-loyalty-rebrand-enables-everyone-to-move-on-with-the-merger/
Hannah Burks, (2019), inside the Marriot-Starwood Marger, retrieved from: https://www.cvent.com/en/blog/hospitality/inside-marriott-starwood-merger
Michael Neibauer, (2019), The merged Marriott, Starwood, Ritz-Carlton rewards program, retrieved from: https://www.bizjournals.com/washington/news/2019/01/17/the-merged-marriott-starwood-ritz-carlton-rewards.html