Marriott Case Marriott Corporation‚ an American firm‚ has 3 major lines of business: lodging‚ contract service and restaurants. Its growth objective is to remain a premier growth company. The four components of its financial strategy are consistent with this growth objective for the reasons: Manage rather than own hotel assets: Marriott sold its hotel assets to limited partners to reduce assets and thus‚ it can increase ROA and thereby increase potential profitability. Invest in projects
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example‚ the growing number of people too old to travel have the option of moving into one of Marriott’s “Senior Living Services” facilities‚ which cater to retirees who need certain types of care. A multisegment strategy can also help you weather an economic downturn by allowing customers to trade up or down among your brands and products. Suppose you take a pay cut and can’t afford to stay at Marriott’s Ritz-Carlton hotels anymore. A room at a JW Marriott—the most luxurious of the Marriott-brand
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each of the three divisions. A detailed analysis is presented about the appropriate calculation inputs for each of the three divisions and various assumptions‚ made while performing the calculations‚ are justified. 1) Are the four components of Marriott’s financial strategy consistent with its growth objective? The first component of the strategy is to manage rather than own the hotel properties. This objective mitigates the investment needed to launch new hotels‚ as the general partner is not
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and enhance the customers’ overall experience as a guest. Customers are used to getting a questionnaire or a survey “after the fact” to record and advise the company of a problem and whether or not it was solved to the customer’s satisfaction. Marriott’s goal is to provide such a survey to the customer during the stay‚ so that any lingering problem can be immediately resolved. If there is something wrong with the room‚ it should be addressed during the stay‚ so that no one leaves dissatisfied.
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bond rate + credit spread = 8.95% + 1.30% = 10.25% WACC = (1 - τ)rD(D/V) + rE(1 - D/V) = (1 – .44) (.1025)(.6) + (.1987)(.4) = 11.39% WACC for Marriott= 11.39% WACC for lodging division = 9.25% WACC for restaurant division = 13.84% WACC for Marriott’s contract division = 23.07% Market Value Leverage D/V Beta βs Tax Rate τ Unlevered Beta = βs / (1 + (1 – τ) D/E) Hilton 14.00 0.76 44.00 0.70 Holiday 79.00 1.35 44.00 0.43 La Quinta 69.00 0.89 44.00 0.40 Ramada 65.00 1.36 44.00 0.67 Total
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‘Marriott International‚ Inc. is a leading worldwide hospitality company. Its heritage can be traced to a small root beer stand opened in Washington‚ D.C. in 1927 by J. Willard and Alice S. Marriott. Today it has more than 3500 lodging properties in the United States and 70 other countries and territories across 19 lodging and vacation resort ownership brands. The company is headquartered in Bethesda‚ Md.‚ and had approximately 137‚000 employees at 2009 year-end. It is recognized by FORTUNE® as
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changed from Hot Shoppes Inc.‚ the name of the first root beer stand‚ to Marriott Corporation. The company operates locations under 13 brand names‚ like JW Marriott Hotels & Resorts‚ Renaissance ClubSport‚ Courtyard Marriott‚ The Ritz-Carlton…etc. Marriott’s name is synonymous with
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which will result in losses and vice versa. 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
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INDUSTRIAL TRAINING REPORT ON J W MARRIOTT DELHI Incorporated BY AMANDEEP SINGH CHAWLA BHM second YEAR third SEMESTER Roll NO-A2729813141 List • acknowledgement • research METHEDOLOGY • introduction • food & BEVERAGE SERVICE • house KEEPING • FRONT OFFICE • food PRODUCTION • conclusion ACKNOWLEDGEMENT With a profound feeling of fulfillment and appreciation to H.r. Director & all Heads of Departments alongside staff parts of J W MARRIOTT‚ DELHI. I wish to place
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The four components of its financial strategy are steady with this growth objective. Its growth objective is to remain a leading growth company and developing appropriate investment opportunities in its different business sections. In 1987‚ Marriott’s sales grew more than 20% and its return on equity was at 22% that shows the sales and earnings per share have doubled over the previous year. The company’s lodging divisions generated 41% of sales and 51% of profits‚ contract services generated
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