Financial Strategy of Marriott The four key elements of Marriott’s financial strategy were: manage rather than own hotel assets; invest in projects that increase shareholder value; optimize the use of debt in the capital structure; and repurchase undervalued shares For the first strategy, Marriott not only identified markets, created development plans, attracted additional capital, and evaluated potential profitability, but also guaranteed a portion of the partnership’s debt. Managing hotels
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change depending on the perspective of a manager, employee, and stockholders. Compensation management is an employer’s behavior that creates internally and externally competitive practices to pay employees (Milkovich, Newman, & Gerhart, 2014). Marriott International Inc. is a well-known hospitality company with about 3,800 properties that serves customers around the world. The company has been on the 100 Best Companies to Work For list every year since its creation in 1998. According to CNN money
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preferred employer, preferred provider and the most profitable company, which means Marriott intend to outperform the average market. Considering the above information, Marriott’s financial strategies are consistent with its growth objective. To be more specific, firstly, Marriott actively manages hotel assets using syndication method with a fully integrated development process rather than passively own it. For example, Marriott developed more than $1 billion worth of hotel properties, making it one of
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Marriott - The Cost of Capital 1/25/2012 Since Marriott and its three divisions all have debt and equity in their capital structure. The cost of capital is the same as Weighed average of cost of capital WACC. WACC = Rd x Wd x (1-T) + Re x We Cost of debt (pretax) = Rd | |Debt Rate Premium Over |Government Rate* |Pretax Cost of debt | | |Government |
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challenge for owner Lisa Campbell. Decision-making and numerous situations are evaluated to ensure this decision-making will be best not only for the hotel but also that it will benefit the local islanders and the people who visit Kava temporarily. The Marriott Kava hotel is projected to be a medium size facility. The accommodations will ensure local islanders, patients receiving extended health care at the local cancer center, families, couples, and even business travelers will have a place to stay during
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In recent years, a few large national hotel chains such as Marriott, Best Western, and Hilton have dominated the hotel industry. Travelers are familiar with establishments that exemplify dependability and quality at reasonable rates. Many hotels recognize the importance of brand loyalty to guests. In doing so, they have expanded their lodging options that are under one corporate name which includes a variety of hotels from limited service, affordable type hotels, and luxury inns. To help understand
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Ratio Quarterly Trend Analysis of Marriott International, Inc. Stock symbol: MAR Listed on the New York Stock Exchange By: 1.0 Introduction This report provides a financial quarterly trend analysis for Marriott International, Inc. The U.S.-based company has been in the lodging business since 1957 1 and currently operates in more than 70 countries worldwide 2, making it one of the oldest and largest hotel corporations in the world 3. Marriott International’s stock is publicly
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Assignment Source Document: HBS case- Marriott Corporation: cost of capital Prepare a case discussion report. The report must at least address the following issues 1. Are the four components of Marriott’s financial strategy consistent with its growth objective? Marriot has following four financial strategy components * Manage rather than own hotel assets. * Invest in projects that increase shareholders values * Optimize the use of debt in the capital structure * Repurchased
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2011 Project Management Term Paper Jenna Volk Production Operations Management 2011 Project Management Term Paper Jenna Volk Production Operations Management Project Management “Trying to manage a project without project management is like trying to play a football game without a game plan.” * K. Tate Project management, in the modern sense, began in the early 1950s, although it has its roots much further back in the latter years of the 19th century. The need for project
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MARRIOTT Case Analysis 1. Are the four components of Marriott’s financial strategy consistent with its growth objective? Manage rather than own hotel assets – Although this strategy has a risk of contract expiration it makes easier to expand. Invest in projects that increase shareholder value – This component definitely stimulates growth, although may force management to take more risk. Optimize the use of debt in the capital structure – The concept of optimal capital structure stands for the
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