com website there are three main types of travellers. The first would be the business traveller‚ another would be the persons who travel for leisure‚ and the last would be the international traveller. From what I have learned there are different lodgings for each type of traveller. The business traveller is typically alone. From what the statistics show this type of traveller is usually a male‚ between the ages of thirty five and fifty four. They are typically employed‚ seeing as they are travelling
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Hilton Worldwide Ever year‚ the travel and tourism industry generates over one trillion dollars to the US economy. Lodging is the top contributing subsector in this industry. One specific leading global hospitality company is The Hampton Inn‚ owned by Hilton Worldwide. They operate over 3‚900 hotels in 90 countries‚ and employ approximately 140‚000 people (About Hilton‚ 2013). The ability of Hilton Worldwide to respond effectively and efficiently to the impact of their industry forces is a
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2. The Weighted Average Cost of Capital (WACC) is as average that reflects the expected return on all of a companies securities. For the WACC of Marriott as a whole represents tall of Marriott’s divisions as one company. Marriott’s divisions are lodging‚ restaurant and contract services. To calculate the WACC a risk free rate was used of 8.72% reflecting the interest rate on 10 year government bonds. A risk premium of 7.76% or the average returns of arithmetic averages of all long term‚ high grade
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company’s strengths‚ weaknesses‚ threats and opportunities. Problem Identification Despite three consecutive years of growth in lodging revenue‚ Amber Inn & Suites realized four consecutive unprofitable years‚ and projections show the fifth year will continue the downward trend. Amber Inn & Suites target market is the business traveler. According to American Hotel and Lodging Association‚ one-half of all guests are business travelers and one-half are for leisure or family vacations (Kerin and Peterson
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characteristics form the firm’s other activities. Using the Marriott’s WACC for valuation only makes sense if the types of investments are consistent with the lines of Marriott’s business. Given that major lines of businesses of Marriott are lodging‚ contract services and restaurants‚ the investments should be closely related to that business and covered in homogenous industries when using the same WACC for evaluation. For instance‚ if Marriott were considering to invest a shopping plaza located
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in the capital structure‚ and Repurchase undervalued shares; are aligned with the growth objective. Marriott wants to remain a premier growth company. This means aggressively developing appropriate opportunities within our chosen lines of business—lodging‚ contract services‚ and related businesses. In each of these areas‚ their goal is to be the preferred employer‚ the preferred provider‚ and the most profitable company. 2) How does Marriott use its estimate of its cost of capital? Does this make
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rivals Shangri-La and Mandarin. Discussion and Analysis “Marriott International‚ Inc. is a worldwide operator and franchisor of hotels and related lodging facilities. The Company operations are grouped into five business segments‚ the North American Full-Service Lodging‚ North American Limited-Service Lodging‚ International Lodging‚ Luxury Lodging and Timeshare. Marriott develops‚ operates and franchises hotels and corporate housing properties under separate brand names‚ and it develops‚ operates
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firm’s three divisions: lodging‚ restaurant and contract services. I use Weighted Average Cost of Capital (WACC) as the hurdle rate. The investment projects in our company are selected by discounting the appropriate cash flows by the appropriate hurdle rate for each division. As the vice president of project financeof Marriott Corporation‚ I am conducting an analysis of our company (Marriott Corporation) for calculating the hurdle rates at each of our firm’s three divisions: lodging‚ restaurant and contract
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operational costs of a hot spring inn in the Yang-Ming-Shan area of Taiwan. The activity-based costing method was used to compute lodging‚ hot spring use and meal serving costs per customer. This paper overcomes all the obstacles to implementing full-scale ABC-based accounting to this hot spring country inn. In this case‚ products‚ defined as hot spring use‚ lodging and meal serving are used as the cost objects. We define five activity centers: the cleaning activity center‚ the customer service
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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
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