Marriott International

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Marriott International, Inc.
Public
Traded as
Industry Hospitality
Founded 1927; 91 years ago (1927)
Washington, D.C., U.S.
Founders J. Willard Marriott
Alice Marriott
Headquarters Bethesda, Maryland, U.S.
Number of locations
6,520 (2017)[1]
Area served
Worldwide
Key people
Bill Marriott
(Executive Chairman)
Arne Sorenson
(President and CEO)
Products Hotels, resorts
Revenue Increase US$22.894 billion (2017)[1]
Increase US$2.359 billion (2017)[1]
Increase US$1.372 billion (2017)[1]
Total assets Decrease US$23.948 billion (2017)[1]
Total equity Decrease US$3.731 billion (2017)[1]
Owner Marriott family (25%)
Number of employees
~177,000 (December 2017)[1]
Subsidiaries Marriott
Starwood
Ritz-Carlton
Le Méridien
Website marriott.com
Marriott International hotels worldwide (interactive map)

Marriott International is an American multinational diversified hospitality company that manages and franchises a broad portfolio of hotels and related lodging facilities. Founded by J. Willard Marriott, the company is now led by his son, Executive Chairman Bill Marriott, and President and Chief Executive Officer Arne Sorenson.

Headquartered in Bethesda, Maryland, in the Washington, D.C. metropolitan area,[2] Marriott International is the largest hotel chain in the world.[3] It has more than 6,500 properties in 127 countries and territories around the world,[1][4] over 1.2 million rooms (as of September 2017), and an additional 195,000 rooms in the development pipeline.[5][6][7] In 2017, Marriott was ranked #33 on Fortune's "100 Best Companies to Work For" list, its twentieth appearance on the list.[8]

History[edit]

The Key Bridge Marriott is the company's longest operating hotel.

Founding and early years[edit]

Marriott was founded by John Willard Marriott in 1927 when he and his wife, Alice Sheets Marriott, opened a root beer stand in Washington, D.C.[9] As a Mormon missionary in the humid summers in Washington, D.C., Marriott was convinced that what residents of the city needed was a place to get a cool drink.[10] The Marriotts later expanded their enterprise into a chain of Hot Shoppes restaurants[11] and the company went public in 1953 as Hot Shoppes, Inc.[12]

The company opened its first hotel, the Twin Bridges Marriott Motor Hotel, in Arlington, Virginia, in 1957. Their second hotel, the Key Bridge Marriott in the Rosslyn neighborhood of the same city, is Marriott International’s longest continuously operating hotel, and celebrated its 50th anniversary in 2009.[13] Their son, J. W. (Bill) Marriott, Jr., led the company to spectacular worldwide growth during his more than 50-year career. In March 2012, at age 80, he turned the CEO responsibilities over to Arne Sorenson, while he assumed the title of Executive Chairman.

Hot Shoppes, Inc. was renamed the Marriott Corporation in 1967.[14]

The company opened two theme parks in 1976.[14] One Marriott's Great America was located outside Chicago, the other Marriott's Great America was located outside San Francisco. Marriott sold both properties in 1984.

Marriott International[edit]

Marriott International was formed in 1993 when the Marriott Corporation split into two companies, Marriott International and Host Marriott Corporation. In 1995, Marriott was the first hotel company worldwide to offer guests the option to book reservations online, via the company's implementation of MARSHA (Marriott's Automatic Reservation System for Hotel Accommodations).[15]

In April 1995, Marriott International acquired a 49% interest in Ritz-Carlton Hotel Company LLC.[16] Marriott International believed that it could increase sales and profit margins for The Ritz-Carlton, a troubled chain with a significant number of properties either losing money or barely breaking even. The cost to Marriott was estimated to have been about $200 million in cash and assumed debt. The next year, Marriott spent $331 million to take over The Ritz-Carlton, Atlanta and buy a majority interest in two properties owned by William Johnson, a real estate developer who had purchased The Ritz-Carlton, Boston in 1983 and expanded his Ritz-Carlton holdings over the next twenty years.

The Ritz-Carlton began expansion into the lucrative timeshare market and undertook other new initiatives made financially possible by the deep pockets of Marriott, which also lent its own in-house expertise in certain areas. There were other benefits for Ritz-Carlton flowing from its relationship with Marriott, such as being able to take advantage of the parent company's reservation system and buying power. The partnership was solidified in 1998 when Marriott acquired a majority ownership of The Ritz-Carlton. Today, there are 81 Ritz-Carlton properties around the world.

Restructuring (2000–2013)[edit]

Marriott's hotel in New York after the collapse of the World Trade Center towers on 9/11

The Marriott World Trade Center was destroyed during the September 11, 2001, attacks.

In 2002 Marriott International began a major restructuring by spinning off many Senior Living Services Communities (which is now part of Sunrise Senior Living) and Marriott Distribution Services, so that it could focus on hotel ownership and management. The changes were completed in 2003.[17]

Marriott International owned Ramada International Hotels & Resorts until its sale on September 15, 2004 to Cendant.

In 2005, Marriott International and Marriott Vacation Club International comprised two of the 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.[18][19][20]

On July 19, 2006, Marriott announced that all lodging buildings it operated in the United States and Canada would become non-smoking beginning September 2006. "The new policy includes all guest rooms, restaurants, lounges, meeting rooms, public space and employee work areas."[21]

San Diego Marriott Marquis & Marina, one of the highest revenue-generating Marriotts in the United States

There were bombings at the Islamabad Marriott in 2008 and at the Jakarta Marriott in 2009.

On November 11, 2010, Marriott announced plans to add over 600 hotel properties by 2015. The bulk of the additions will be in emerging markets: India, where it plans to have 100 hotel properties, China, and Southeast Asia.[22]

On January 21, 2011, Marriott said that pornography would not be included in the entertainment offered at new hotels, which will use an Internet-based video on demand system.[23]

On December 13, 2011, J.W. Marriott, Jr. announced he would be stepping down as CEO of the company, while assuming the role of executive chairman. It was announced that Arne Sorenson would be taking over as CEO as of March 2012.[24]

U.S. Republican presidential candidate Mitt Romney released his 2011 federal income taxes on September 21, 2012, showing that he declared $260,390 in director's fees from Marriott International,[25] despite the fact that news was released on January 13, 2011, that he had already stepped down from the Marriott International board to run for president.[26] His released 2010 tax returns showed earnings in 2010 of $113,881 in director's fees from Marriott.[27] In February 2012, Bloomberg reported on Romney's years overseeing tax matters for Marriott, which had included several "scams" (quoting Sen. John McCain) and legal actions brought against Marriott, which Marriott lost in court, over its manipulations of the U.S. Tax Code.[28][29]

In December 2012, Guinness World Records recognized the five-star JW Marriott Marquis Hotel Dubai as the world's tallest hotel.[30]

Recent developments (2014–present)[edit]

The Detroit Marriott at the Renaissance Center is one of the tallest hotels in the Western Hemisphere.[31]

On October 3, 2014, the US Federal Communications Commission (FCC) fined Marriott $600,000 for unlawful use of a "containment" feature of a Wi-Fi monitoring system to deliberately interfere with client-owned networks in the convention space of its Gaylord Opryland Resort & Convention Center in Nashville. The scheme disrupted operation of clients' mobile telephone hotspots by sending fraudulent Wi-fi de-authentication packets.[32] Marriott International, Inc., the American Hotel and Lodging Association and Ryman Hospitality Properties responded by unsuccessfully petitioning the FCC to change the rules to allow them to continue the wilful jamming of client-owned networks,[33] a position which they were forced to abandon in early 2015 in response to backlash from clients, mainstream media, major technology companies and national mobile carriers.[34] The incident drew unfavorable publicity to Marriott's practice of charging transient lodgers $13–15/day for wi-fi connections, routinely included in the base price at most discount chains,[35] and to exorbitant wi-fi fees (typically $250–1000 per device[34]) charged to convention-goers at a time when the $2.25 billion annually in ever-increasing "incidental fees" charged by US-based hotels to their lodgers was already drawing criticism and negative media coverage.[36]

On January 27, 2015, Marriott acquired Canadian hotel chain Delta Hotels.[37] Delta operated 38 hotels in Canada at the time of acquisition; it has since expanded to the United States, Europe, and Asia .

On November 16, 2015, Marriott announced the acquisition of Starwood Hotels and Resorts Worldwide for $13 billion.[38] A competing offer for Starwood at $14 billion from a consortium led by China's Anbang Insurance Group was announced March 3, 2016, moving Starwood to cease the deal with Marriott and pursue the offer from Anbang Insurance Group.[39][40] After Marriott raised its bid to $13.6 billion on March 21, Starwood terminated the Anbang agreement and proceeded again with the merger with Marriott.[41] Following all necessary regulatory approvals in the United States and around the world over the course of 2016, Marriott closed the merger with Starwood on September 23, 2016, creating the world's largest hotel company with over 5700 properties, 1.1 million rooms, and a new portfolio of 30 brands.[42]

The Starwood acquisition gives Marriott a larger non-US presence; approximately 75% of Starwood’s revenues are from non-US markets.[43] The acquisition is the largest of its sort since 2007, when Blackstone acquired Hilton for $26 billion. There is a $400 million breakup fee if the transaction is not completed. Executives noted that total transaction and integration expenditures may exceed $100 million.[43]

Operations[edit]

Marriott is the first hotel chain to serve food that is completely free of trans fats at all of its North American properties.[44][45]

The hotel is noted for providing copies of the Book of Mormon in addition to the Bible in its rooms.[46]

Marriott has 100 hotels in India, and the first Marriott hotel was the Marriott Resort and Spa Goa which opened on December 10th, 1999.

Finances[edit]

For the fiscal year 2017, Marriott International reported earnings of US$1.372 billion, with an annual revenue of US$22.894 billion, an increase of 34.1% over the previous fiscal cycle. Marriott International's shares traded at over $101 per share, and its market capitalization was valued at over US$39.1 billion in October 2018.[47]

Year Revenue
in mil. USD$
Net income
in mil. USD$
Total Assets
in mil. USD$
Price per Share
in USD$
Employees
2005 11,129 669 8,530 26.26
2006 11,995 608 8,588 30.79
2007 12,990 696 8,942 35.90
2008 12,879 362 8,903 23.03
2009 10,908 −346 7,933 18.56
2010 11,691 458 8,983 28.61
2011 12,317 198 5,910 29.01
2012 11,814 571 6,342 34.10
2013 12,784 626 6,794 39.34 123,000
2014 13,796 753 6,833 59.89 123,500
2015 14,486 859 6,082 72.48 127,500
2016 17,072 780 24,140 67.57 226,500
2017 22,894 1,372 23,948 101.81 177,000

Marriott brands[edit]

The Ritz-Carlton at LA Live, Los Angeles
Newly opened J.W. Marriott at LA Live
A Fairfield Inn & Suites in Lake Buena Vista, FL
JW Marriott Singapore South Beach, October 2017
JW Marriott Desert Springs in-door Boat Parking Foyer in Palm Desert, CA
Frenchman's Cove, U.S. Virgin Islands, a Marriott Vacation Club resort

As of September 23, 2016, Marriott operates 30 brands internationally.[48]

Luxury[edit]

Upper upscale[edit]

Premium[edit]

Select[edit]

Long Stay[edit]

Great America Parks[edit]

Marriott developed three theme parks, of which two theme parks were opened. They operated as Marriott's Great America from 1976 until 1984. The parks were located in Gurnee, Illinois; Santa Clara, California; and a proposed but never-built location in the Washington, DC area, and were themed celebrating American history. The American-themed areas under Marriott's tenure of ownership included "Carousel Plaza" (the first section beyond the main gates); small-town-themed "Hometown Square"; "The Great Midwest Livestock Exposition At County Fair" with a Turn of the Century rural-fair theme; "Yankee Harbor", inspired by a 19th-century New England port; "Yukon Territory," resembling a Canadian/Alaskan logging camp; and the French Quarter-modeled "Orleans Place". At opening, the parks had nearly identical lay-outs.

In 1984, Marriott disposed of its theme park division; both parks were sold and today are associated with national theme park chains. The Gurnee location was sold to Six Flags Theme Parks where it operates today as Six Flags Great America. The Santa Clara location was sold to the City of Santa Clara, who retained the underlying property and sold the park to Kings Entertainment Company, renamed Paramount Parks in 1993. From 1993 to 2006, the Santa Clara location was known as Paramount's Great America. In 2006, Paramount Parks was acquired by Cedar Fair Entertainment Company; the Santa Clara park operates today as California's Great America. In the years after their sale, the layouts of both of the parks have diverged substantially.

See also[edit]

References[edit]

  1. ^ a b c d e f g h "Marriott International, Inc. 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2018.
  2. ^ "Marriott Fact Book." Marriott International, Inc. Retrieved on March 18, 2016. p. 2/104: I. CORPORATE PROFILE. "Corporate Office Marriott International, Inc. 10400 Fernwood Road Bethesda, MD 20817"
  3. ^ Forbes (July 24, 2018). "You Can Now Check In With A Facial Scan At Marriott In China". Retrieved 2018-08-06.
  4. ^ "About Marriott Hotels | Marriott Corporate Business Information". www.marriott.com. Retrieved 2017-11-17.
  5. ^ "JW Marriott Hotels & Resorts | Marriott News Center". News.marriott.com. Retrieved 2016-10-28.
  6. ^ Required FieldConfirmation number (May 24, 2013). "About Marriott Hotels | Marriott Corporate Business Information". Marriott.com. Retrieved 2016-10-28.
  7. ^ "MARRIOTT INTERNATIONAL INC /MD/ (Form: 10-K, Received: 02/20/2014 13:28:17)". Secfilings.nasdaq.com. Retrieved 2016-10-28.
  8. ^ "Fortune 100 - Marriott International". Fortune. Retrieved 2017-10-10.
  9. ^ "Remembrances of Mom - Marriott on the Move". Blogs.marriott.com. May 9, 2007. Retrieved 2016-10-28.
  10. ^ "J. Willard Marriott". Entrepreneur.com. Retrieved 2016-10-28.
  11. ^ "Root Beer Roots". The Washington Post. Retrieved 2016-10-28.
  12. ^ "Our Story". www.marriott.com. Retrieved January 11, 2018.
  13. ^ "Key Bridge Marriott Hotel Prepares for 50th Anniversary With $30 Million Renovation of Event Space - Archive". Theopenpress.com. September 26, 2008. Retrieved 2016-10-28.
  14. ^ a b "When did it Happen? Hotel Timeline 1900-1949". whendidithappen.com. Retrieved January 11, 2018.
  15. ^ "Magazine Article". Forbes.com. Retrieved 2016-10-28.
  16. ^ "History of Marriott International, Inc". Fundinguniverse.com. Retrieved 2016-10-28.
  17. ^ "Form 10-K". Sec.gov. Retrieved 2016-10-28.
  18. ^ Drinkard, Jim (January 17, 2005). "Donors get good seats, great access this week". USA Today. Retrieved 2008-05-25.
  19. ^ "Financing the inauguration". USA Today. January 16, 2005. Retrieved 2008-05-25.
  20. ^ "Some question inaugural's multi-million price tag". USA Today. January 14, 2005. Retrieved 2008-05-25.
  21. ^ "Marriott News". Marriott.com. July 19, 2006. Retrieved 2016-10-28.
  22. ^ "Marriott to expand India portfolio to 100 hotels". Added expansion plans. November 11, 2010. Retrieved November 11, 2010.
  23. ^ DeLollis, Barbara (January 21, 2011). "Marriott says no to adult movies in new hotels". USA Today. Retrieved October 5, 2011.
  24. ^ Clabaugh, Jeff (December 13, 2011). "JW Marriott Jr. retiring as CEO". Retrieved December 13, 2011.
  25. ^ "Mitt Romney, 2011 Tax Return" (PDF). Efile.com. Retrieved 2016-10-28.
  26. ^ "Mitt Romney leaves Marriott International board". Bizjournals.com. Retrieved 2016-10-28.
  27. ^ "Mitt Romney, 2010 Tax Return" (PDF). Efile.com. Retrieved 2016-10-28.
  28. ^ "Romney as Audit Chair Saw Marriott Son of BOSS Shelter Defy IRS". Bloomberg.
  29. ^ "Did Romney enable a company's abusive tax shelter? - CNN.com". CNN. August 9, 2012.
  30. ^ "Luxury Hotel in Dubai Crowned World's Tallest Hotel". Dubai Chronicle.
  31. ^ Official World's 100 Tallest High Rise Buildings (Hotel Use) Archived August 6, 2011, at the Wayback Machine.. Emporis.com. Retrieved on July 5, 2009.
  32. ^ "Marriott to pay $600,000 to resolve Wifi-blocking investigation". Federal Communications Commission. October 3, 2014. Retrieved 2016-10-28.
  33. ^ Petition of American Hotel & Lodging Association, Marriott International, Inc., and Ryman Hospitality Properties for a Declaratory Ruling to Interpret 47 U.S.C. § 333, or, in the Alternative, for Rulemaking, Apps.fcc.gov, 2014.
  34. ^ a b "Marriott hotels do U-turn over wi-fi hotspot blocks". BBC News.
  35. ^ Los Angeles Times (November 2, 2014). "Free Wi-Fi at luxury Marriott hotels--for some". latimes.com.
  36. ^ Los Angeles Times (August 31, 2014). "Hotels to collect record $2.25 billion in guest fees". latimes.com.
  37. ^ "Marriott expands in Canada by buying Delta hotel brand". thestar.com. January 27, 2015.
  38. ^ "Marriott closes $13-billion purchase of Starwood to become world's largest hotel chain". Los Angeles Times. Associated Press. September 23, 2016.
  39. ^ "Starwood dumps Marriott deal for competing bid". USA TODAY. March 18, 2016.
  40. ^ "Archived copy". Archived from the original on March 14, 2016. Retrieved 2016-03-14.
  41. ^ Banerjee, Arunima (March 21, 2016). "Sheraton-owner Starwood accepts higher offer from Marriott". Reuters. Yahoo! Finance. Retrieved March 21, 2016.
  42. ^ "SMarriott International Completes Acquisition of Starwood Hotels & Resorts Worldwide, Creating World's Largest and Best Hotel Company While Providing Unparalleled Guest Experience". Marriott International. September 23, 2016.
  43. ^ a b "Breaking News: Marriott Buying Starwood for $12 Billion, Creating World's Largest Hotel Chain - CoStar Group". Costar.com. Retrieved 2015-11-17.
  44. ^ Yu, Roger (February 1, 2007). "Marriott says trans fats will check out". Usatoday.com. Retrieved 2016-10-28.
  45. ^ "Marriott to Cut Trans FatAt U.S., Canada Hotels - WSJ". Online.wsj.com. February 2, 2007. Retrieved 2016-10-28.
  46. ^ McDowell, Edward (December 26, 1995). "Bible Now Shares Hotel Rooms With Some Other Good Books". The New York Times. Retrieved December 6, 2012.
  47. ^ "Marriott Revenue 2006-2018 | MAR". www.macrotrends.net. Retrieved 2018-10-31.
  48. ^ "Marriott Hotel Brands | Marriott International". Marriott.com. Retrieved 2016-10-28.

Further reading[edit]

  • Marriott, John Willard, junior, and Kathi Ann Brown. 1st ed. The Spirit to Serve: Marriott's Way. New York: Harper Business, 1997.
  • Bill Marriott (2013). Without Reservations: How A Family Root Beer Stand Grew Into a Global Hotel Company.

External links[edit]