Marriott Corporation (A) Introduction In 1927 J.W. Marriott Sr. founded the Marriott Corporation (MC) and during the 1980s experienced a huge growth. Marriott’s main strategy in those days was developing hotel properties around the world and selling these properties to outside investors while retaining lucrative long-term management contracts. MC was a conservative company and it stressed the themes of careful attention on the details‚ the organization and its employees. Quality was the one of the
Premium Marriott International Stock Stock market
Marriott Corporation: The Cost of Capital Executive Summary J. Willard Marriott started Marriott Corporation in 1927 with a root beer stand‚ expanding it into a leading lodging and food service company with sales of over $6 billion by 1987. At the time‚ Marriott had three main lines of business‚ lodging‚ contract services and restaurants‚ with lodging generating about 51% of company’s profits. The four key elements of Marriott’s financial strategy were managing hotel assets rather than owning‚
Premium Weighted average cost of capital Marriott International
Marriott Case 1. What is the WACC for Marriott Corporation? Cost of Debt Tax Rate We determined this number by taking income taxes paid/EBITDA = 175.9/398.9 = 44.1% Return on debt There are two clear components of debt: fixed and floating. In order to get the fixed debt rate we took the interest rates on fixed-rate government securities and added the premium
Premium Finance Marriott International Interest
When J. Willard Marriott opened his first nine stool A&W restaurant in Washington D.C. on May 20‚ 1927 he had no idea what his name would mean to the world one day. John Willard Marriott was born on September 17‚ 1900. He was from a farm in Utah where he spent his childhood and young adult ages working for his parents. Early on‚ J. Willard was a young mind looking for business. When he was old enough his dad let him travel for the family business. While he was going through Washington D.C. he
Premium Marriott International
------------------------------------------------- Abstract: The case examines Marriott International’s (Marriott) various innovative HR practices‚ which earned it the reputation of being ’the best place to work’ in the hospitality industry. It describes Marriott’s ’Spirit to Serve’ culture and the company’s HR philosophy which guided its various HR initiatives. The case gives an overview of the best practices employed by the company in the recruitment‚ selection‚ training and development of employees
Premium Marriott International Hotel
Why is Marriott ’s CFO proposing Project Chariot? 2. Is the proposed restructuring consistent with management ’s responsibility? 3. The case describes two conceptions of managers ’ fiduciary duty (p. 9). Which do you favor: the shareholder conception or the corporate conception? Does your stance make a difference in this case? 4. Should Mr. Marriott recommend the proposed restructuring to the board? Marriott Corporation (A) 1. Why is Marriott ’s chief financial officer proposing Project Chariot
Premium Stock Marriott International Fiduciary
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
Premium Marriott International Income statement Revenue
those who accurately reflect the society as a whole. A recognized leader in this effort is Marriott International. Marriott has a top down approach to workplace diversity that has been a recipe for success from its beginning through is 84 year history up until today. Marriott has is a world leader in hotels and diversity and that be expressed in this paper. Diversity in the workplace in practice‚ Marriott International Diversity is an important aspect in today’s workplace in order for the best
Premium Marriott International
Marriott Corporation Jacob Piquette Jingjin Cen Chen Huo Wenkao Wu Accurately Measuring Debt Capacity For Marriott Corporation While management was correct in some aspects of measuring debt capacity for Marriott Corporation‚ the method used to obtain the ratio of 6.64 did not include the debt from the previous repurchase‚ grossly overstating the ratio and leading to believe that Marriott Corporation had a large unsused portion of debt capacity. This is shown in Exhibit 5. After thorough analysis
Premium Stock Hotel chains Stock market
Marriott Corporation: The Cost of Capital April 2012 Executive Summary Determining the appropriate cost of capital for new investment projects for a diversified company like the Marriott Corporation is not an easy endeavor. However‚ it is an important exercise because the more effective the process‚ the better it can help to support the company’s growth objective with its financial strategy. The four components of the financial strategy are: manage rather than own hotel
Premium Investment Finance Weighted average cost of capital