1. How does Marriott use its estimate of its cost of capital? Does this make sense? Marriott has defined a clear financial strategy containing four elements. To determine the cost of capital‚ which also acted as hurdle rate for investment decision‚ cost of capital estimates were generated from each of the three business divisions; lodging‚ contract services and restaurants. Each division estimates its cost of capital based on: Debt Capacity Cost of Debt Cost of Equity All of the above are
Premium Weighted average cost of capital Finance
Ritz-Carlton Hotel Company‚ L.L.C. is the parent company to the luxury hotel chain‚ Ritz-Carlton Hotels. Ritz-Carlton operates 81 luxury hotels and resorts in major cities and resorts in 26 countries worldwide. The hotel company is today a subsidiary of Marriott International. Company History The history of The Ritz-Carlton Hotel Company‚ L.L.C. originates with The Ritz-Carlton‚ Boston. The standards of service‚ dining and facilities of this Boston landmark serve as a benchmark for all Ritz-Carlton
Premium Hotel Hotel chains Marriott International
transfer. Management contract companies in the developed countries send technically competent managers to manage the local properties and train the local managers and staff. If the management company is from a brand-new hotel chain‚ such as Forte or Marriott‚ it can introduce its long established management system to the operations of the local hotel. The use of a management contract company can greatly enhance the local hotel’s image and competitive edge in the international hotel market. On the
Premium Hotel chains Hotel Hyatt
researched‚ its compensation strategy‚ best practices they are applying‚ and compensation-related challenges they are facing. Marriott International‚ Inc.-formed in 1993 when Marriott Corporation split into two separate companies-is the world’s leading lodging and contract services company. Marriott International has two operating groups: Marriott Lodging‚ which generates about 60 percent of company revenue‚ and the Marriott Service Group‚ its contract services operation. Marriott Lodging manages or franchises
Premium Marriott International
Readings Ch. 11: Interpreting Financial Statements BYP11-4 BYP11-4 Marriott Corporation split into two companies: Host Marriott Corporation and Marriott International. Host Marriott retained ownership of the corporation’s vast hotel and other properties‚ while Marriott International‚ rather than owning hotels‚ managed them. The purpose of this split was to free Marriott International from the “baggage” associated with Host Marriott‚ thus allowing it to be more aggressive in its pursuit of growth.
Premium Marriott International Hotel Management
HBR Case #1 Marriott Corporation: The Cost of Capital Group 16—Tutorial Mon 11:30am Group members LIU Ying‚ Chloe | 1155019350 | LUO Yingying‚ Irika | 1155020931 | TIAN Tian‚ Sarah | 1155019114 | WU Jiajie‚ Jesse | 1155019061 | 17 September 2012 Executive Summary By 1987‚ Marriott Corporation had grown into a large multi-dimensional company with over $5 billion assets in lodging‚ contract services and restaurants. The company enjoyed fast growth in both sales and assets at around
Premium Weighted average cost of capital Debt
During the Aztec period women were treated as second-class citizens‚ unimportant‚ except for bearing children. When the Spanish conquered the Aztecs‚ they brought new customs. One of them was young women at the age of 15 had to choose between a life at marriage and a life dedicated to God. Today some traditions have change. When a girl turns fifteen‚ it is a tradition in Latin-American cultures that the girl receives a Quinceanera. A Quinceanera signifies the transition from being a girl into a young
Premium Dance Girl Aztec
Blue Ocean Strategy Paper MKT/421 The Blue Ocean Strategy The blue ocean strategy in marketing is an approach to building a customer base looks to build an entirely new market segment that does not currently exist with other firms. Perfect competition consists of a myriad of competitors in the same industry that are fighting with each other over their slice of the market by offering similar products or substitute products for innovations that already exists. A “red ocean” describes a marketplace
Premium Management Blue Ocean Strategy Strategic management
1. EXECUTIVE SUMMARY The report will undertake a strategic analysis of Global Automobile Industry. Relevant theoretical frameworks and concepts will be applied to the automobile industry in order to make better understanding of its strategies. Firstly‚ the report will provide background information such as industry definition‚ competitors and history outline. It will also include reasons for undertaking this research. Secondly‚ strategic analysis of Automobile industry will be
Premium Strategic management Porter generic strategies Automotive industry
file and created prospect lists totaling 3.7 billion people. Consider what Acxiom has done for the two organizations below. Marriott Vacation Club International: Just like Disney Resort who sells time-share vacation to prospect customers‚ Marriott Club Vacation International is exploiting all types of information in hopes of selling vacation time shares. Initially‚ Marriott provided Acxiom with a list of names‚ mostly hotel guests. Then Acxiom sifts through motor vehicle records‚ property records
Premium Marriott International Hotel Holiday