...FINANCIAL ANALYSIS Of MARRIOT INTERNATIONAL INC. Jannine Mae S. Cortes BBF 3-9S Consolidated Statements of Income (USD $) | In millions, except per share date | unless otherwise specified | | 31-Dec-14 | 31-Dec-13 | 28-Dec-12 | REVENUES | | | | Base Management fees | 4.87% | 4.8576% | 4.9179% | Franchise fees | 5.40% | 5.2096% | 0.5671% | Incentive management fees | 2.18% | 2.0025% | 1.9638% | Owned, Leased and other Revenue | 7.41% | 7.4312% | 8.3714% | Cost reimbursements | 80.13% | 80.4991% | 79.6089% | Revenues | 100% | 100.00% | 100.00% | OPERATING COSTS AND EXPENSES | | | | Owned, Leased and other-direct | 5.62% | 5.7024% | 6.6447% | Reimbursement Cost | 80.13% | 80.4991% | 79.6089% | Depreciation, amortization, and other | 1.07% | 0.9934% | 0.1016% | General, administrative, and other | 4.78% | 5.0767% | 4.9264% | Cost and Expenses, Total | 91.60% | 92.2716% | 92.0433% | OPERATING INCOME | 8.40% | 7.7284% | 7.9567% | Gains and other income | 0.0580% | 0.0860% | 0.3555% | Interest expense | -0.8336% | -0.9387% | -1.1596% | Interest Income | 0.2175% | 0.1799% | 0.1439% | Equity in earnings (losses) | 0.0435% | -0.0391% | -0.1100% | INCOME BEFORE INCOME TAXES | 7.8863% | 7.0166% | 7.1864% | Provision for income taxes | -2.43% | -2.1198% | -2.3531% | NET INCOME | 5.46% | 4.8967% | 4.8332% | EARNINGS PER SHARE- Basic | | | | Earnings per share (in USD per share) | $2.60 | $2.05 | $1.77 | EARNINGS PER...
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...Marriott International, Inc. Patricia Carbajal Kasey Dunbar Nancy Palacios Elena Ross ACC-206 Hospitality Accounting Professor George Williams 5/6/2012 Marriott International, Inc. is at the top of the lodging industry. The company is one of the world's leading hoteliers with 3,700 operated or franchised properties in more than 70 countries. Its hotels include full-service brands and the Marriott family owns about 30% of Marriott International. The top two competitors are Starwood Hotels & Resorts Worldwide, Inc. and Hyatt Hotels Corporation. Starwood Hotels & Resorts Worldwide, Inc. is in the luxury and upscale categories, where the prices are high and the services extensive. They appeal to the most fashionable clientele because the company cultivates celebrities and holds events to attract them. By revenue, Starwood is in the middle, and has the lowest ratio which generates 1/3 of sales from food and beverages. Additionally, the return on equity and return on assets is in the bottom half of the competitor; leaving Marriott to produce 50% more revenue than Starwood. Hyatt Hotels Corporation is a top operator of luxury hotels and resorts that managed, franchised, and owned properties in 45 countries. Its brand offers hospitality services targeted primarily to business travelers and upscale vacationers. The company generates only 33% of the revenues in comparison to Marriott International, Inc. In addition, 60% of the revenues are from hotel operations...
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...I chose to research and evaluate Marriot Hotels, human resource (HR) and business strategy, their current HR department job positions, and different ways Marriot markets its company regarding human capital. Marriot International, Inc. is a leading hospitality company with more than 3,900 properties, 18 brands, and associates at our headquarters, managed and franchised properties around the world (Aruba Marriott Resort & Stellaris Casino). Founded by J. Willard and Alice Marriott and guided by Marriott family leadership for more than 80 years, the company is headquartered in Bethesda, Maryland, USA, and reported revenues of nearly $13 billion in fiscal year 2013(Aruba Marriott Resort & Stellaris Casino). For the success of this company, the human resource department is responsible for workforce planning, performance management and talent acquisition. To ensure the human resource strategy is aligned with Marriott’s business strategy and ensure it maintains its competitive advantage first I would gather information by assessing all internal capabilities and resources to determine the company’s strengths and weaknesses (Stewart p.41). Assess potential threats and opportunities in relation to the company’s future goals and job opportunities. This information is critical in helping a company know what, and how many good and services to provide. Currently Marriot has over 27 different job postings available. These positions range from front office support, vacation coordinator...
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...project basically is talking about the investment of the stock portfolio, that mostly focus on investing of the different stocks from different company in different sector, analyzing how much percentage that we expected to invest in each stock under the expected return that we want to gain. This portfolio project covers four companies from four different sectors, which have their own advantages. The main goal of this portfolio project is focusing on the stable return of the portfolio, and the reason for choosing these companies. The four companies that I choose for this project are Toyota Motor Corporation (-TM-), The Coca-Cola Company (KO), Bank of American Corporation (BAC), and Marriott International, Inc. (MAR). The reason that I choose The Coca-Cola Company (KO) and Marriott International, Inc. (MAR) is these two companies have a stable historical price movement. Stable return of the portfolio is the first goal for all the investors, which can gain a stable profit. The Coca-Cola Company (NASDAQ: KO) The Coca-Cola Company is one of the largest corporations in the non-alcoholic beverage industry. Coca-Cola has a market cap of $186 billion and focuses exclusively on beverages. Coca-Cola has been a publicly traded company since 1920. One share of stock purchased in 1919 for $40, with all dividends reinvested, would be worth $9.8 million in 2012, a 10.7% annual increase, adjusted for inflation. In 1987, Coca-Cola once again became one of the 30 stocks, which make up the Dow...
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...would influence the current firm’s beta, which would lead to a lower required rate of return). We must compare this new WACC with the expected return of the average of the firm’s current WACC and the project’S IRR. If this expected rate of return is higher than the newly calculated firm’s WACC, it would mean that the project is a value-increasing investment. PROBLEM 5.7 a. While the Domestic Beer and International Beer could be seen as a similar business segment, I think it would be necessary to have different cost of capital for each of this business segments for the following reasons: They may be selling almost the same product, but the circumstances around them are really different. Geographic, political, economical differences lead to risk differences, which leads to different cost of capital. Obviously for packaging we would need different WACCs too. It is really difficult to search for comps for this firm in Domestic Beer, since it has a market share of 49,2% (2010) but we could use as comps the following: Miller Coors, Pabst Brewing CO, Yuengling and Son, Inc , Boston Beer Co and North American Breweries. As for the...
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...Chapter 1: INTRODUCTION 1.1 Introduction Marriott International is a multinational hospitality company. It is a leading lodging company based in United States of America. The company was founded by J W Marriott in 1927, which is now headed by his son. Marriott International employs close to 200,000 employees. Marriott International boasts of 4087 properties spanning over 80 countries, with 697,000 rooms and another 197,000 in the making. The hotels or lodgings are either self operated or franchises. Throughout the 88 years of its operation, Marriott International has built a reputation of immeasurable quality, service excellence, integrity and being pioneers in innovation. 1.2 Objectives of the Study The objective is to study the organizations structure, internal and external environment, carry out an analysis of the strengths and weaknesses, discovering new opportunities and finding out the threats faced by Marriott International. Furthermore, we would also be assessing whether the organizational structure implemented by the company is apt for today’s volatile, unpredictable and fast moving environment. 1.3 Scope of the study In this report we intend to focus majorly on the organizational structure and the assessment of the internal and external environment. This report would not cover the competitor analsysis in depth and would be limited to the study on Marriott International as a whole. Moreover, we have not taken into account the different...
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...Marriott International, Inc Annual Report 2011 Accounting Principles 100 June 16, 2012 Marriott International, Inc., a leader in the hospitality industry, extended their attention to customer comfort to their intended annual report audience, and created a communication instrument that stands apart from most others in the typically dull arena of corporate reporting. In 2011, note worthy endeavors included Global Growth which caused an increase in revenues and increase in franchises. Marriott opened 210 properties with nearly 32000 new rooms around the world. Their brand portfolio which consists of urban centers to resorts has something for everyone. Each brand has been designed to deliver a unique travel experience across a range of customer segments. Marriott Vacations Worldwide Corporation, an addition to Marriott's assets in 2011, is now an independent, publicly traded company. With Marriott's management and franchising of this new spin-off they believe this will foster growth and attract new investors. Combined with "Revenue Per Available Room" (RevPAR), another business of Marriott's, grew and helped facilitate their global growth. Core values are an important part of the business philosophy that has help propel this company in 2011. Purpose, Values, Strategy and Success Measures combined with the vision to be the #1 hospitality company in the world and leading on three success measures: Loyalty, Profitability and Growth will pave the way to success. Financial...
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...arriott Corporation: The Cost of Capital (Abridged) Executive Summary: The case "Marriott Corporation: The Cost of Capital (Abridged)" focuses on an ideal opportunity to review the capital asset pricing model and the weighted average cost of capital through calculation of the cost of capital for Marriott as a whole. Dan Cohrs is faced with making recommendations for the hurdle rates at Marriott Corporation and its three divisions utilizing CAPM and WACC. This case illustrates how to calculate beta based on comparable companies and to lever betas to adjust for capital structure; the appropriate risk-less rate and market risk premium; the choice of time period to estimate expected returns and the difference between the geometric and the arithmetic average as a measure of expected returns. SYNOPSIS Marriott Corporation began in 1927, and over the next 60 years, the company grew into one of the leading lodging and food service companies in the US. In 1987, the Marriott's annual report stated, "We intend to remain a premier growth company. Our goal is to be the preferred employer and provider, and the most profitable company". Marriott's profits were $223 million on sales of $6.5 billion. In April 1988, vice president of project finance at the Marriott Corporation, Dan Cohrs, must prepare annual recommendations for the hurdle rates at each of the firm's three divisions, including restaurant, lodging, and contract services, as well as...
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...sustainability report for Marriott International, the introductory remarks stated that, for a company to be a great leader in its industry, it has to possess a set of core values that inform every decision the company makes. Hence, Marriott’s core values have stood the test of time: putting people first, pursuing excellence, embracing change, and acting with integrity to serve our world. (team, 2014) Marriot has been a leading lodging company based in Bethesda, Maryland, USA, with nearly 3,900 properties in 72 countries. The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands. In January 16th 2014, the Marriott once again was named one of FORTUNE magazine’s “100 Best Companies to Work For”, it has maintained its excellent status of high performance as one of the only 13 companies that have appeared on this list ever since 1998 (Wiggins, 2014) In addition, this luxurious hotel has attracted and held most of its customers, employees and other stakeholders due to its rich commitment to Corporate Social Responsibilities (CSR). The legacy growing deep from its founders hiring a doctor and a surgeon to attend to the associates’ healthcare needs. Back in the years after the Great Depression. Since then, its CSR has grown and evolved powerfully in over the 72 countries. (team, 2014) It is highly competitive over its competitors such as: Starwood Hotels, Hyatt Hotels Corporation, Choice Hotels International, and Intercontinental Hotels among...
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...------------------------------------------------- Marriott Case Analysis This print version free essay Marriott Case Analysis. Category: Business Autor: reviewessays 03 December 2010 Words: 2449 | Pages: 10 Marriott Corporation and Project Chariot The Marriott Corporation (MC), had seen a long, successful reign in the hospitality industry until the late 1980s. An economic downturn and the 1990 real estate crash resulted in MC owning newly developed hotel properties with no potential buyers in sight and a mound of debt. During the late 1980s, MC had promised in their annual reports to sell off some of their hotel properties and reduce their burden of debt. However, the company made little progress toward fulfilling that promise. During 1992, MC realized that financial results were only slightly up from the previous year and their ability to raise funds in the capital market was severely limited. MC was left with little choice, as they had to consider some major changes within the company if they wished to remain a successful business. Thus, J.W. Marriott, Jr., Chairman of the board and president of MC, turned to Stephen Bollenbach, the new chief financial officer, for ideas and guidance. Bollenbach, who had a reputation for creating innovative financial structures in the hotel industry, proposed a radical restructuring for MC. Bollenbach’s proposal included breaking MC into two separate entities. The new company would retain the service businesses of MC and have the...
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...Executive Summary Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement. We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase profits by 5% annually, to gain brand loyalty from their international customers, and lastly, to increase their market share in the lodging industry by 3% within 3 years. Marriott International is ranked as number one in market capitalization and revenues in the lodging industry. In fact, it has been ranked by Fortune as among the “100 Best Companies to Work For.” It has a total of six business segments in its portfolio, namely: the North American Full-Service Lodging Segment, North American Limited Service Lodging Segment, International Lodging Segment, Luxury Segment, Timeshare Segment, and the Synthetic Fuel Segment. It has a deep history, which started way back to 1927 when J. Willard Marriott and his bride opened a 9-seat root beer stand...
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...Introduction Marriott International, Inc. is a global leading hospitality company with more than 4,000 properties, and more than 690,000 rooms in 77 countries. Marriott operates franchises, and licenses hotels and timeshare properties worldwide. It also licenses the operation, development, marketing, sale, and management of vacation ownership and related products. Marriott was founded in 1927 by J. Willard Marriot and Alice Marriott in 1927 and is headquartered in Bethesda, Maryland, USA. JW Marriott Hotels & Resorts is Marriott International’s luxury brand that consists of 60 exceptional properties in gateway cities and distinctive resort locations around the world. JW Marriott Hotels & Resorts are expanding into gateway cities and established resort destinations as well as emerging luxury markets throughout the world. JW Marriott Hotels & Resorts compete with other fine luxury hotel brands such as Fairmont, Park Hyatt, Shangri-La and Conrad and high-end independent properties. Marriott International reported revenues of nearly $13 billion in fiscal year 2013. It has been committed to guest satisfaction, and operates and franchises hotels under 18 brands for more than 80 years. There are three roles within the Marriott “family” culture which are associates (employees), customers and its communities. “Take care of your employees and they’ll take care of the guests” was the philosophy of Marriott’s founder. “Spirit to serve the customers” is the core value of...
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...School Company Project of Marriott A Writing Project Submitted in Partial Fulfillment of the Requirements for the MBA Degree Course: HOSP 6509 Prof. Kim Chunzi Wang Oct 22, 2012 Company information * Company history Marriott International is one of the biggest and finest hospitality business groups around the world. It owns a variety of famous brands which includes Ritz-Carlton, Bulgari Hotels & Resorts, JW Marriott, and Renaissance. All these brands represent luxury accommodations and services as well as unique visual experiences. Marriott emphasizes on improvement of guests’ satisfaction and loyalty. It also focuses on social responsibilities and community relationships. It possesses over 80 years old history which started by Mr. J. Willard Marriott, a restaurant owner at very beginning. After half century development, Marriott now has over 3000 hotels around the world with the annual sales over $30 billion and employees over 300,000 (Marriott International, 2012). * Mission and goals Mission: According to Marriott (2012), “putting people first, pursuing excellence, embracing change, acting with integrity and serving our world” Goals: Expand market to middle east and Africa in 2012 (Marriott International, 2012) invest on new, refreshed, and reinvented properties, new room and public space designs, and enhanced amenities and technology offerings maintains the superior customer services with an emphasize on guest and associate satisfaction, customer...
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...Marriott International (Marriott) is global chain of hotels and lodging accommodations that are designed to fit varying needs and budgets. Marriott has operation in six main hotel and lodging segments: Luxury, collections, lifestyle/boutique, signature, select services and extended stay. Marriott own chains such as Marriott Hotels & Resorts, Courtyard by Marriott, Residents Inn, Fairfield Inn, and Marriott Vacation Club International, BVLGARI, The Ritz Carlton just to name a few. The commonality between all of the properties that Marriott International owns is that they all have a clear business-level strategy that allows them to focus on particular customer groups. Analyze the business strategies for the corporation you chose to determine the business level strategy you think is most important to the long –term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. Marriott business strategies vary depending on the lodging segment. Examples include the Residents Inn is focused on customers that need amenities that go beyond the average but allow the traveler to have a sense of freedom, like they are at home or the Marriott Vacation Club International, which is classified as a luxury timeshare operation. The Fairfield Inn chain is currently using a focused cost leadership business-level strategy. In Fairfield Inns, there are several things that allow the Marriott Company to control cost and offer accommodations at a reduced rate...
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...| Marriott/Hyatt | Business Management 364 | | | 11/4/2012 | | Marriott has been in the lodging hospitality business for 85 years. (Marriott.com) Marriott’s mission statement helps define the company’s values and goals. The goal of Marriott is to become the number one lodging company in the world. This goal can be an ongoing challenge with the lodging industry being one of the most competitive industries. Hyatt Hotel Corporation is one of many Marriott competitors. Just like Marriott; the Hyatt Corporation has a mission statement and core value statement. There are several similarities and differences between the two organizations values’ and mission statements. One of the similarities between the two organizations is their priority on the guest. It can be seen in the mission statement for Marriott and Hyatt’s core value statement Marriott’s mission statement states that the company put people first, pursue excellence, embrace change, and act with integrity and serve our world. Hyatt’s’ mission statement states that their mission is to “provide authentic hospitality by making a difference in the lives of the people we touch every day, including our associates, guests, and owners”. (Hyatt.com) Another similarity is that both companies strive to be the number one hospitality brand. Both companies produce a yearly responsibility and sustainable report documenting the accomplishments and ongoing goals and services to the community and world. The difference...
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