Marriott Corporation: Case Introduction Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base‚ ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging‚ contract services‚ and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive
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systems that were similar in nature. Additionally‚ competitors such Starwood hotels began developing member loyalty programs that resulted in far higher guest engagement‚ (5% of guests amassed to roughly 20% of the company’s revenue). Nonetheless‚ Marriott is very intuitive when it comes to business intelligence‚ but its competitive advantage with analytics is quickly eroding and it needs to start focusing on other aspects of the business to remain the industry leader. 2. Describe your company’s position
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Issue In this assignment‚ we are asked to compute the WACC of Marriott Corporation and each of the company’s three divisions. Our approach is outlined in the next section. We made a series of assumptions regarding either the available data or the missing information. This has been explained below‚ in a separate section. Approach We applied the following formulae to calculate the WACC: Our assumptions are explained in the next section. The table below presents the approach for calculations
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13% of sales in 1987 respectively. Marriott is determined to develop and to enhance its position in each division and remain a premier growth company as stated in the annual report (1987). This key objective implies to become the most profitable company‚ be the preferred provider as well as preferred employer. Analysis the four key elements of Marriott’s financial strategy we arrive at the following conclusion: a) Managing rather than owning hotels assets‚ Marriott can become more focused on its core
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Marriot Case Brief 1. What is the weighted Average Cost of Capital for Marriot Corporation? WACC for Marriott Corp is 11.89 WACC of divisions: Lodging 10.29‚ Restaurant 13.49‚ Contract Services 13.615 a) What risk-free rate and the risk premium did you use to calculate the cost of equity? We used 8.95% as the risk free rate (LT Government Debt) and the MRP we used was 7.43%‚ which means are expected market return is 8.95+7.43=16.38% b) How did you measure Marriott’s cost of debt? We added
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October 23‚ 2010 SUBJECT: Marriott Company The purpose of this report is to give a general overview of Marriott International Inc. as the place which offers great career opportunities and benefits. Marriott International Inc. is one of the most respectable corporations in the United States. In considering potential companies to work for‚ Marriott is a top choice for many reasons. My research involved all aspects‚ thus making the report objective and informational. Marriott provides the highest quality
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Marriott Corporation The Cost of Capital Author Student Number 董晖 林桐 吴正浩 祝承懿 Shanghai Advanced Institute of Finance‚ Shanghai Jiao Tong University Table of Contents Background The hurdle rate is the required return or opportunity cost of each division and company. Only project with positive NPV discounted by hurdle rate will be invested‚ and the total return of Marriott up to all projects invested. Though there are many subjective aspects in estimation
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a. What business is Marriott in? Are the four components of Marriott’s financial strategy consistent with its growth objective? b. How does Marriott use its estimate of its cost of capital? Does this make sense? c. What is the weighted average cost of capital for Marriott Corporation? • What risk-free rate and risk premium did you use to calculate the cost of equity? • How did you measure Marriott’s cost of debt? 1. Are the four components of Marriott ’s financial strategy consistent
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Symmachus‚ who was a Pagan opponent of Christianity‚ describing his troubles getting ahold of wild animals‚ and horses for chariot races. Despite the troubles‚ the venationes persisted in both the east and west on a reduces scale. This included bear-baiting‚ bullfights‚ and lesser and local beasts which were often spared and reused as performers. The last animals hunts
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Apollos chariot at Busch Gardens is one of their largest attractions being a high speed roller coaster ride reaching speeds of up too 70+ miles per an hour. The ride wipes around corners and has many drops to simulate a chariot going into battle flying around as it is pulled by a horse. This large attraction mimics when Apollos son Phaethon lost control of his horses and the chariot was taken up high into the sky than diving quickly to the earth several times. Apollo was the Greek god of light
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