Post on 29-Mar-2015
Marriott International Inc.
FY 2010
Mars 2011
2
Marriott vs. its main competitorsR
oo
ms
ne
two
rk
as o
f F
Y 2
010
Source : Companies annual reports except for Hilton network, Accor internal data
88%
86%
85%
83%
68%
61%
56% 28%
208 Kr
366Kr
In ‘000 rooms
EMEA Americas
The 3rd largest global hotel group, the second if we include Timeshare segment (618 Kr)
647
613
605
~600
507
495
302
Network
13%19%
8% 9%
8%7%
10% 4%
16%
7%5%
20%19%
Ro
om
s p
ipel
ine
as o
f F
Y20
10
In ‘000 rooms
Pipeline
An increasing pipeline vs. 2009 in line with its key competitors
205
103
105
138
101
51
85
NB: Figures include traditional lodging and extended stay units but exclude timeshare products
APACVs
end 2009
-3%
-5%
+5%
+6%
0%
-24%
0%
(2)
(2) Hilton pipeline based on an internal press release, January 2011(1) Hilton geographical breakdown based on 2009 figures
(1)
Pipeline
3Marriott – Company profile
FY 2010
Marriott Hotels & Resorts Worldwide Inc.Summary
1. Company overview Slide 4
2. Company organization Slide 5
3. Brand positioning Slide 6
4. Room portfolio Slide 7
5. Operating mode Slide 8
6. Group strategy Slide 10
7. Pipeline and lodging development Slide 13
8. Key figures Slide 14
9. SWOT analysis Slide 17
10. Company history Slide 18
11. Brands description Slide 20
12. Management Slide 36
1%
13%
13%
11%18%
44%
North American Full ServiceNorth American Limited ServiceInternationalLuxury Timeshare Other
4Marriott – Company profile
FY 2010
1. Company overview
Description
Main Figures Revenue breakdown
Revenues by segment
– American leading global player in the hospitality business– 3,545 hotels and vacation ownership, 11 conference centers– 618,104 rooms (incl. Timeshare)– Positioning: mostly upscale to luxury segments– 129,000 employees / 300,000 including franchisees
– Funded in 1967, Marriott operates in 3 main segments:– Traditional lodging industry– Extended stay segment– Timeshare segment (leading worldwide player)
– Hotels are mostly located in North America– US leader, with a 9% market share (1% worldwide)– Hotels in 70 countries and territories worldwide
– Other activities– Marriott Golf: management of 42 golf courses – Architecture and Construction: providing design,
development, construction, refurbishment and procurement services to owners and franchisees of lodging properties
Ownership
Public company since 1998, listed on the Nasdaq Stock Exchance
Owners Stake
Float 78%
Marriott (J W Jr) 14%
T.Rowe Price Associates , Inc 13%
Marriott (Richard E) 7%
Sources: Marriott Annual Report 2010, Reuters
# rooms
Mid-Lux 3,545 618,104
# hotels
67.8% 128.8$ 87.3$
ADROR Revpar
segment
2009 2010 2011E 2012E
Financials (M$)Revenue 10,908 11,691 11,010 11,859
% Change in Revenue -15.3% 7.2% -5.8% 7.7%
EBITDA 898 1,044 1,174 1,369
EBITDA margin 8.2% 8.9% 10.7% 11.5%
Net Profit 342 435 528 650
Net margin 3.1% 3.7% 4.8% 5.5%
Market Data (M$)Market Cap 13,880
NetworkHotels 3,420 3,545
Rooms 595,461 618,104
Market Data as of April 28, 2011
5Marriott – Company profile
FY 2010
2. Company organization
LuxuryNorth AmericaLimited service
Timesharesegment
InternationalNorth America
Full service
Marriott A&C
Other activities
*
* Marriott manages 42 golf coursesSource: Marriott Annual Report 2010
6
3. Brand positioning
LimitedService
FullService
ExtendedStay
Timeshare
Lodging Extended Stay Timeshare
ServicedApartments
Luxury(4% of room
network)
Upscale(57% of room
network)
Midscale(39% of room
network)
Marriott – Company profileFY 2010
Source: Marriott Annual Report 2010(1) Only short term lease agreements with apartment
owners and managers
2h.
105h.
1h.
13h.
49h.
494h.
146h.
11h.
892h.
274h.
658h.
193h.
(1)
23h.
613h.
14h.
4h.
53h.
7
4. Room portfolio
Marriott – Company profileFY 2010
Source: Marriott Annual Report 2010
2009 2010 Var
Occupancy rate 64,2% 67,8% 3,6
Average Daily rate ($) 128,9 128,8 (0,1%)
RevPar ($) 82,8 87,3 5,4%
H R H R H R H RH R
Upscale & Luxury 821 284 912 347 131 40 704 515 190 378 60 18 511 25 7 625 90 27 694
Bulgari Luxury 2 117 59 1 58 1 59 0% 100% 0%
Ritz-Carlton Luxury Sofitel 105 25 587 244 9 2 545 66 14 560 7 1 979 5 1 414 18 5 089 3% 97% 0%
EDITION Luxury 1 353 353 1 353 0% 100% 0%
Autograph Collection Upscale Pullman 13 3 828 294 13 3 828 0% 0% 100%
Marriott H&R / JW Marriott Upscale Pullman 543 200 721 370 89 27 409 346 140 051 45 13 859 18 5 543 45 13 859 2% 63% 34%
Marriott Conference centers Upscale Pullman 11 3 298 300 11 3 298
Renaissance Upscale Pullman 146 51 008 349 32 10 692 78 28 288 8 2 673 2 668 26 8 687 4% 63% 33%
Midscale 1 824 222 899 122 39 7 814 1 716 202 105 43 7 771 2 401 24 4 809
Courtyard Ltd-Service Mercure 892 131 069 147 39 7 814 795 111 634 32 6 412 2 401 24 4 809 3% 39% 58%
SpringHill Suites Ltd-Service Suitehotel 274 32 085 117 273 31 961 1 124 0% 16% 84%
Fairf ield Inn Up. Eco. Ibis 658 59 745 91 648 58 510 10 1 235 0% 2% 98%
Total Lodging 2 645 507 811 192 170 48 518 2 231 392 483 103 26 281 27 8 026 114 32 503
Extended Stay 829 97 330 117 4 657 787 90 891 23 3 321 3 492 12 1 970
Executive Appart. Up. Upscale 23 3 775 164 4 657 4 657 3 492 12 1 970 0% 97% 3%
Residences Inn Up. Mid. 613 74 130 121 595 71 571 18 2 559 0% 26% 74%
Tow nePlace Suites Midscale Suitehotel 193 19 425 101 192 19 320 1 105 0% 19% 81%
Timeshare 71 12 963 183 6 1 012 56 10 648 7 918 0 0 2 385
The Ritz-Carlton Club Luxury 14 729 52 11 581 3 148 0% 100% 0%
Vacation Club Up. upscale 53 11 918 225 5 963 42 9 800 4 770 2 385 0% 100% 0%
Grand-Residences Up. upscale 4 316 79 1 49 3 267 0% 100% 0%
Total 3 545 618 104 182 2% 46% 52%
RoomsFchised
Breakdown by brand
CategoryACCORBrand
(for example)
Hotels
TS = 2% of total network
Hotel avSize
Geographical repartition (italic=estimation) Operating mode-%room
Europe United States Americas Af. Mdle-East Asia Pac.Ow ned
& LeasedMnged
8
5. Operating modeEvolution 2005 - 2010
Global network per operating mode(In room number)
Network 2005499,165 rooms / 2,741
h
FranchiseOwned & Leased Management
2%
52%
46%
Source: Marriott Annual Reports 2005 and 2010
52% 46%
2%
+118,939 rooms+24% over 5 years
Network 2010618,104 rooms / 3,545
h
Marriott – Company profileFY 2010
9
5. Operating modeMain Brands, 2009 FY
Source: Marriott Annual Report 2010
Brand Hotels Rooms Ownership by brand
105 25,587
49 21,987
494 178,734
146 51,008
892 131,069
613 74,130
193 19,425
658 59,745
274 32,085
3% 60% 37%OwnedManagedFranchised
4% 64% 32%OwnedManagedFranchised
3% 97%OwnedManagedFranchised
89%OwnedManagedFranchised
3% 39% 58%OwnedManagedFranchised
26% 74%OwnedManagedFranchised
19% 81%OwnedManagedFranchised
2% 98%OwnedManagedFranchised
16% 84%OwnedManagedFranchised
Marriott – Company profileFY 2010
Network 2010
3,545 hotels618,104 rooms
– +1,445 hotels and 228,104 rooms– Brand value for customers and owners– Innovative loyalty programs– Development by brand conversion &
new building
Network 2000
2,100 hotels390,000 rooms
10
6. Group strategy (1/3)
Source: Marriott Press release Q4 2010
Timeshare Strategy Spin-off of Timeshare activity forecast for 2011 but no further
information
Investments $[500-700]m (incl. 50-100 for maintenance Capex)
Guidance openings
Share Buybacks
Debt monitoring
Marriott – Company profileFY 2010
35 k r. in 2011 vs. 30 k r. in 2010Guidance openings
Excess cash return to shareholders through repurchase rather than dividends
Share Buybacks
BBB investment grade back in 2010 in all three rating agencies: cash will be invest primarily in the business (no need to dramatic debt reduction furthermore)
Debt monitoring
11
6. Group strategy (2/3)
Brand development– ‘Edition’, new luxury boutique brand designed by Schrager: 1st Edition hotel opened in Hawaii in
September 2010, following by Edition Istanbul in February 2011
– ‘ Autograph Collection’, new brand launched in November 2009, comprised of upper-upscale and luxury, independent hotels located in major cities and desired destinations worldwide. Actual network: 13h in the US only at year end 2010 but international expansion in 2011.
Partnership– ‘ AC Hotels by Marriott’: created in Q4, 2010 through a co-branding with AC Hotels of Spain JV aims at
increasing the number of AC Hotels by Marriott across Europe and Latin America. 4 former AC hotels to be rebranded as Autograph Collection in Spain in 2011.
Operating type: development trough management contracts rather than franchise (very few owned properties)
Distribution & Technology– Deal with Ctrip.com, an online travel agency based in China to sell hotel inventory across Marriott
brands and affiliated hotels to travelers in China
– Rollout of a new program called Navigator, a rethinking of the concierge concept that offers guests a complete personalized itinerary for their stays
1
2
3
Source: Press reviewMarriott – Company profile
FY 2010
4
12
EMEA : 18% of full service pipelineCourtyard to double its presence in
Europe by 2015
Marriott to convert historic Berners Hotel into London edition
A £350 million property under construction in London’s Knightsbridge area to be flagged by Marriott International’s ultra-luxury Bulgari Hotels brand
First four Autograph Collection to be launched in Spain by May 2011
Ambition to double its European presence by 2015
6. Group strategy (3/3)Development by geographic area
APAC : 45% of the full service pipelineAggressive expansion in India: +6
properties in 2011 Marriott plans to increase its network to 100 h in 5 years.
Latin America & the Caribbean's : limited ambitions (3% of total pipeline)
Ambitions to grow Marriott portfolio in Brazil by signing development deal for 50 Fairfield Inns
USA : 86% of the limited service pipeline Marriott plans to double its budget and
midscale presence in NYC adding 13 properties, i.e. + 2,900 rooms by 2013
Marriott – Company profileFY 2010
Source: Press review
13
7. Pipeline and lodging development
Development in 2010Opening of 154 properties / 28,114 rooms. Highlights of the year include:
Conversion of 23 properties / 3,660 rooms in 2009 (13% of total openings)
28% of all new rooms opened outside the US
+102 h (12,030 r) added to North American Limited-Service brands
Opening of the first EDITION hotel in Waikiki, Hawaii (353 r)
Pipeline, as announced end of year 2010
- Nearly 105,000 r under construction, awaiting conversion or approved for development
35,000 r to be added in portfolio in 2011
Pipeline according to Lodging, Q3 2010
20% of total pipeline on extended stay, through Residence Inn and Towne Place
1/3 of total pipeline outside the US
(1) Lodging Q3 2010 excl.Openings 2010Sources: Marriott Annual Report 2010, Lodging Q3 2010
Pipeline Full service: 32 Kr.
47%
7% 15%
22%
9%Europe
Middle EastAfrica
North America
Latin America
APAC
Pipeline Limited service: 69 Kr.
3%
3%
86%
3%5%
Europe
Middle EastAfrica
North America
Latin America
APAC
Marriott – Company profileFY 2010
(1) (1)
14
8. Key figuresP&L evolution & forecasts
Marriott – Company profileFY 2010Source: Reuters
Financials (in M€) 2000A 2001A 2002A 2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011E 2012E CAGR 2003-2010
Revenue 7,911 7,768 8,415 9,014 10,099 11,129 11,995 12,990 12,879 10,908 11,691 11,010 11,859 3.8%
% Change in Revenue 69.3% NA NA 12.0% 10.2% 7.8% 8.3% -0.9% -15.3% 7.2% -5.8% 7.7%
EBITDA 1,075 854 573 530 646 883 1,275 1,397 1,298 898 1,044 1,174 1,369 10.2%
EBITDA margin 13.6% 11.0% 6.8% 5.9% 6.4% 7.9% 10.6% 10.8% 10.1% 8.2% 8.9% 10.7% 11.5%
Net Profit 479 236 277 502 594 543 712 697 359 342 435 528 650 -2.0%
Net margin 6.1% 3.0% 3.3% 5.6% 5.9% 4.9% 5.9% 5.4% 2.8% 3.1% 3.7% 4.8% 5.5%
Sources: company reports and Reuters consensus estimates as of April 28, 2011
15
8. Key FiguresLodging Fees
208 220 232 245 296 329 390 439 451 400 441
383 372 379 388435
497553
620 635530
562316202 162 109
142
201
281154
182
0
200
400
600
800
1000
1200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Incentive Mngt Fees
Base Mngt Fees
Franchise Fees
Marriott – Company profileFY 2010
Fees 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total Fees 907 794 773 742 873 1027 1224 1428 1397 1084 1185Incentive Mngt Fees 316 202 162 109 142 201 281 369 311 154 182Franchise Fees 208 220 232 245 296 329 390 439 451 400 441Base Mngt Fees 383 372 379 388 435 497 553 620 635 530 562
Source: Marriott Annual Report 2010
369 311
16
– Leading hotel operator in the US (10% market share)– Highest Return on Investment in the industry (25%)– Asset light strategy : less than 1% of portfolio owned;
less vulnerability to conjuncture– High levels of free cash flow and low required capital
spending– Attractive fee-based business model– Well balanced portfolio, from midscale to high-luxury– Strong loyalty program (>30m members,2,900 hotels
participating in 65 countries) and reservation network– Experienced management team
Strength
– Weak innovation capacity– Overdependence on the North American market (80%
of global room portfolio)
Weaknesses
– Growing appeal of suite hotels to international
consumers may benefit to Extended Stay properties– Strong pipeline and development plan– Global opportunities in emerging markets such as
Eastern Europe and Asia Pacific; 40% of the full-
service unit pipeline located outside the US– Global brand penetration opportunities– New brands such as Autograph and Edition launched
to benefit from the growing appeal for boutique hotels
Opportunities
– High earnings volatility caused by Marriott’s incentive
management fees– Reliability upon business travelers in case of
recession– Increasing popularity of boutique hotels as more
consumers turn away from traditional hotel chain
establishments– Timeshare segment trend to be considered with
caution– Limited ability to retain earnings owing to REIT rules
Threats
9. SWOT analysis
Sources: Global market informationdatabase by Euromonitor, broker research
Marriott – Company profileFY 2010
17
10. Company history
Joint venture with Whitbread PLC to acquire Whitbread’s portfolio of 46 franchised Marriott and Renaissance hotels; JV sold to RBS in 2006Purchase of 32 hotels and JV interests from CTF Holdings
2005
Ramada is sold to Cendant2004
Ownership interest in the Ritz-Carlton Company LLC rises to 98 %1998
Partnership with Nickelodeon to co-develop a new lodging resort brand for travelers seeking funPartnership with designer Ian Schrager to create a lifestyle boutique hotel brand called Edition 2007
J.W. Marriott starts a food service management business named the Hot Shoppe Inc1927
Global corporate restructuring: rfocus on mega-markets in lodging and contract servicesDevelopment of facilities management1989
Acquisition of the Renaissance Hotel group (Renaissance, Ramada international, New World)1997Acquisition of a 49% interest in the Ritz-Carlton Hotel Company1995
1984 Development of Timeshare
1957 Development of Hospitality
1939 Development of Food Service Management
1937 Development of Air Catering
1988 Development of Senior rental and living services
Source: Marriott’s Factbook
Launch of the Autograph Collection, an upper-upscale full-service brand of independent hotels2009
1953 Public Offering
1987 Acquisition of The Residence Inn Company, all-suite hotel chain targeting extended stay travelers
Split of operations between 2 companies: Marriott International & Host Marriot Corp.1993
Acquisition of ExecuStay and launch of corporate housing business1999
Exit of Marriott Marriott Distribution Services2002
Marriott – Company profileFY 2010
18
Marriott International Inc.
which is formed to manage and operate various brands of Marriott hotels
10. Company history From Marriott Corporation to Marriott International Inc. and Host H&R
In 1993, Marriott Corporation split it activities into two separate, distinct and totally independent companies :
Host has continued to acquire full service hotelswhile it moves away from the limited-service and F&B operations
–1995: Host, spun off the Host Marriott Operating Group as a separate company called Host Marriott Services
–1998: Host launches a brand diversification strategy by acquiring luxury and upper upscale hotels that include brand names such as Four Seasons, Ritz-Carlton and Hyatt
–1999: Host becomes a REIT, and is required to lease its properties to unaffiliated third parties. It does so to Crestline Capital Corporation, (Host spin off, Dec 1998)
–2005: Host announced the acquisition of a portfolio of hotels from Starwood. On April 19, 2006, it changes its name to Host Hotels & Resorts, to reflect its enhanced brand diversity
–2009:Today Host H&R Inc owns or leases a portfolio of 146 Marriott Hotels under long term agreements. Host also owns hotels from other luxury or upper-upscale brands worldwide
Source: Marriott Website
1967 1993 1995 1998 19991967 1993 1995 1998 1999
Host Marriott Corporation
which retains ownership of 24 full service hotels, 102 limited service hotels, 14 senior living communities and the Host Marriott Operating Group, an entity that provided F&B in airports
Marriott – Company profileFY 2010
19 Source: Marriott Annual Report 2010
11. Brands description
Lodging Brands
The Ritz-Carlton Edition
Bulgari Autograph
JW Marriott H&R Courtyard
Marriott H&R SpringHill Suites
Conference Center Fairfield
Renaissance H&RAC Hotels by Marriott
Extended Stay
ExecuStay Residence Inn
Executive Apartments TownePlace Suites
Timeshare
The Ritz-Carlton Club Vacation Club
Grand Residences
Marriott – Company profileFY 2010
20
11. Brands descriptionFull-service – The Ritz-Carlton
Overview
Full service, luxury brand►Premium traditional accommodations and
amenities for both business and leisure travelers.►Hotels are operated by the Ritz-Carlton Hotel
Company, which is owned up to 98% by Marriott.
Key figuresFY 2010 North AM► ADR: 280.1$►Occupancy: 67.6%►RevPar: $189.3
Mostly fitted out with► Business center, high speed Internet access►24h room service►Fitness center and swimming pools►Meeting and banquet facilities►Club level►Gift shops
Main competitors►The Waldorf=Astoria Collection, Four Seasons,
Fermont Hotels
Network
Network► 77 hotels + 28 residences / 25,587 rooms
= 244 rooms per hotel in average
Locations► Mainly in key city centers or in resort locations
Geographical breakdown
Source: Company website & reports(1) Includes Bulgari Hotels
FY 2010 International (1)
► ADR: $310.5► Occupancy: 64.0%► RevPar: $198.82
Marriott – Company profileFY 2010
10%
57%
8%
6%
20%Europe
US
Americas
MEA
APAC
21
Full service, luxury brand►Joint Venture between The Ritz-Carlton Hotel
Company, LLC and Bulgari, an Italian Jeweler►Bulgari licenses the brand while Marriott, via The
Ritz-Carlton, manages the hotels
Main competitors►Park Hyatt, independent Boutique Hotels
11. Brands descriptionFull-service – Bulgari Hotels & Resorts
Overview Network
Network► 2 hotels / 117 rooms in operation
= 59 rooms per hotel in average
Locations► Only in prime locations
Geographical breakdown► 1 hotel in Milan, 1 in Bali► 2 restaurants in Tokyo, in connection with 2
Bulgari retail stores
Source: Company website & reportsMarriott – Company profile
FY 2010
22
Full service, upper-upscale & luxury brand►Launched in November 2009
►Diverse collection of independent and unique
hotels, whether they are resort, historic hotel,
boutique arts or urban-edge hotel in a dynamic
gateway city
►Partnership with the Kessler Collection: 7 hotels
will join the Autograph Collection. These 7 hotels
are located in the US
11. Brands descriptionFull-service – Autograph Collection
Overview Network
Network► 13 h, 3,828 r
Locations► Footprint: US only
► Targeted locations: major cities and desired
destinations worldwide
Marriott – Company profileFY 2010Source: Company website & reports
23
Full service, luxury brand►Launched in 2007 through an agreement with the
hotel innovator Ian Schrager►Lifestyle boutique hotels designed by Ian Schrager
and operated by Marriott
11. Brands descriptionFull-service – Edition
Overview Network
Network► First EDITION hotel opened in Waikiki, Hawaii
(september 2010), followed by an opening in Istanbul (february 2011)
Marriott – Company profileFY 2010Source: Company website & reports
24
11. Brands descriptionFull-service – JW Marriott Hotels & Resorts
Overview
Full service, luxury brand
Upgraded services compared to typical Marriott full-service property
►World-Class golf (in most hotels)►Spa facilities (in most hotels)►Upgraded executive lounges►Business centers►Fitness centers►24-hour room service
Main competitors►Sofitel, Grand Hyatt, Intercontinental, Westin,
Conrad
Network
Network► 49 hotels / 21,987 rooms in operation
= 449 rooms per hotel in average
Locations► Gateway cities and upscale locations
throughout the world
Geographical breakdown► Nearly half of the network located in the US
Source: Company website & reportsMarriott – Company profile
FY 2010
25
11. Brands descriptionFull-service – Marriott Hotels & Resorts
Overview
Full service, upscale brand►Marriott’s global flagship brand, primarily serving
business and leisure upper-upscale travelers
Key figures (incl. JW properties)FY 2010 North Am► ADR: $143.1► Occupancy: 66.5% ►RevPar: $95.1
Mostly fitted out with►Business center►Meeting facilities►Swimming-pool►Fitness center►Many resorts have additional recreational facilities
such as golf courses, tennis courts, spa facilities
Main competitors►Pullman, Sheraton, Hilton, Grand Plaza, Hyatt
Regency
Network
Network► 494 hotels / 178,734 rooms in operation
= 362 rooms per hotel in average
Locations► Mainly in key city centers, airports or resort
locations
Geographical breakdown► Breakdown includes JW Marriott hotels
Source: Company website & reports
14%
70%
7%
3%
7%
Europe
US
Americas
MEA
APAC
Marriott – Company profileFY 2010
26
11. Brands descriptionFull-service – Marriott Conference Centers
Overview
Full service, upscale brand►Properties specialized in small- to mid-sized
meetings organization►In addition to features found in typical Marriott full-
service property, centers include expanding meeting room space, banquet and dining facitilites
Mostly fitted out with►Business center►Meeting facilities fitted out with latest
communications technology►Recreational facilities
Network
Network► 11 hotels / 3,298 rooms in operation
= 295 rooms per hotel in average
Locations► Mainly in business cities, in the US only
Source: Company website & reportsMarriott – Company profile
FY 2010
27
11. Brands descriptionFull-service – Renaissance Hotels & Resorts
Overview
Full service, upscale brand►Stylish and personalized properties targeting
business and leisure travelers
Key figuresFY 2010 North Am► ADR: $139.7►Occupancy: 67.2%► RevPar: $93.8
Mostly fitted out with►Business center►Meeting and banquet facilities►Swimming Pool &Fitness Center►Distinctive restaurants and lounges►State-of-the art technology
Main competitors►Pullman, Sheraton, Hilton, Radisson, Hyatt
Regency
Network
Network► 146 hotels, including 2 ClubSport / 51,008
rooms
= 354 rooms per hotel in average
Locations► Mainly in downtown locations in major cities, in
suburban office parks, near major gateway airports and in destination resorts
Geographical breakdown
Source: Company website & reports
21%
55%
5%
1%
17%
Europe
US
Americas
MEA
APAC
Marriott – Company profileFY 2010
The Renaissance Hotels brand is a special case of affiliated brand :– Upselling brand: from midscale (Ramada) to upscale (Renaissance)
– Launched as Ramada Renaissance, an upscale spin-off brand of Ramada Inns, but rebranded later as a stand-alone brand : Renaissance Hotels, once the success and the brand reputation were established
28
1982 1993 1997 2006/7 2009
Launch of Ramada Renaissance Hotels, an upscale spin-off brand of Ramada Inns
Change of logo, following the renovation plan, inspired by the trend launched by W hotels.
Launch of a $2 billion renovation plan.
Acquisition by Marriott of the Renaissance Hotel Group N.V.
Marriott retains the stand-alone Renaissance brand, while shedding the Ramada International business in phases to Cendant (Wyndham’s parent company).
Disposal of the affiliation
Renaissance Hotels is now a stand-alone brand.
11. Brands descriptionRenaissance: Spin-Off Of A Flagship Brand
29
11. Brands descriptionFull-service – AC Hotels by Marriott
Overview
JV with AC Hotels, spanish hospitality group
►AC Hotels concepts: urban style four star hotel product
►Management contracts and franchise transferred to the joint venture which will rebrand these hotels “AC Hotels by Marriott”
►No change in hotels ownership►Integration with Marriott international’s global
systems , distributions and sales platforms
Mostly fitted out with►Own unique style and character ►“AC Bed” with four large pillows and built-in
reading light►Mini bar, 24-hour room service, wifi…►“AC fitness centers” and “AC lounge”►Meeting rooms
Network
Network► At the launch of JV, nearly all of the 92 existing
AC hotels in Spain, Italy and Portugal are expected to transition to the new co-brand during 2011
Ambition► To become a market leader in Europe and Latin
America in the urban, four-star hotel category
Locations► Europe and Latin America only
Source: Company website & reports(1) Includes Bulgari Hotels
Marriott – Company profileFY 2010
30
11. Brands descriptionLimited-service – Courtyard
Overview
Select-service, midscale brand►Mostly targeting business travelers. It has recently
been redesigned
Key figuresFY 2010 North Am► ADR: $110.0► RevPar: $72.27► Occupancy: 65.7%
Mostly fitted out with► Central courtyard► Exercise room► Swimming-pool►The Market (self-serve store 24h/24)►The Bistro
Main competitors► Novotel, Hilton Garden Inn, Ramada, Holliday Inn,
Hyatt Place
Network
Network► 892 hotels / 131,069 rooms in operation
= 147 rooms per hotel in average
Locations► Mainly downtown in primary or secondary cities
Geographical breakdown► Mostly in the US
Source: Company website & reports
6%
85%
5%
0%4%
Europe
US
Americas
MEA
APAC
Marriott – Company profileFY 2010
31
11. Brands descriptionLimited-service – SpringHill Suites
Overview
Limited service, midscale brand►All-suites targeting business travelers as well as
leisure travelers
Key figuresFY 2010► ADR: $97.32► RevPar: $63.91► Occupancy: 65.7%
Mostly fitted out with► Complimentary hot continental breakfast►Indoor pool and exercise room►Self-serve business center►Lobby computer, free in-room high speed Internet
access and Wi-fi access in the lobby►On-Site business services (copying, faxing &
printing)►The Market (self-serve food store 24h24)
Main competitors►Suitehotel, Hawthorn Suites, Homewood Suites
Network
Network► 274 hotels / 32,095 rooms in operation
= 117 rooms per hotel in average
Geographical breakdown► Only in North America (The US and Canada)
Source: Company website & reportsMarriott – Company profile
FY 2010
32
Limited service, midscale brand►Targeting business travelers►Marriott’s fastest-growing brand, rejuvenated by an
aggressive “plant and prune” strategy : its network is expected to double within 3 years
Key figuresFY 2010► ADR: $84.5► RevPar: $53.3► Occupancy: 63.1%
Mostly fitted out with►Continental breakfast►Swimming pool and exercise facilities (in most
hotels)►Lobby computer, free in-room high speed Internet
access and Wi-fi access in the lobby►On-Site business services ►The Market (self-serve food store 24h24)
Main competitors►Ibis, Holiday Inn Express
11. Brands descriptionLimited-service – Fairfield Inn
Overview Network
Network► 658 hotels / 59,745 rooms in operation
= 91 rooms per hotel in average
Geographical breakdown► The US (648 hotels), Mexico and Canada
Source: Company website & reportsMarriott – Company profile
FY 2010
33
Extended stay, upper-upscale brand►Mainly targeting business travelers staying at least
one month. It offers travelers residential accommodations with hotel-like amenities
Network:►Marriot comes to short-term lease agreements
with apartments owners and managers and franchise agreements. About 3,850 apartments are managed in 43 major markets
Geographical footprint► Only in the US
Main competitors►Embassy Suites, AmeriSuites9
11. Brands descriptionExtended stay – Executive Apartments & Execustay
Overview Overview
ExecuStay’s sister brand for the international market► Extended stay, upper-upscale brand, mainly
targeting business travelers staying at least one month. It offers travelers residential
accommodations with hotel-like amenities
Network► 20 properties / 3,911 rooms in operation
= 196 rooms per hotel on average
Geographical breakdown► Only outside the US, in 14 countries
Main competitors► Embassy Suites, AmeriSuites9
Source: Company website & reportsMarriott – Company profile
FY 2010
34
Extended stay, upscale brand►Mainly targeting business and leisure travelers
staying 5 or more days
Key figuresFY 2010► ADR: $112.1► RevPar: $84.4► Occupancy: 75.3%
Mostly fitted out with►Spacious accommodations►Fully equipped kitchen, Free hot breakfast►Swimming pool and Sport court►Self-serve business center, Free in-room high
speed Internet and Wi-fi access in the lobby►Evening social events►Free grocery shopping services, Laundry facilities►24-hour staff
Main competitors►Suitehotel, Homewood Suites, Hawthorn Suites,
Baymont Inn & Suites, Summerfield Suites
11. Brands descriptionExtended stay – Residence Inn
Overview Network
Network► 613 hotels / 74,130 rooms in operation
= 121 rooms per hotel in average
Geographical breakdown► Only in North America: 595 properties in the
US, 18 in Canada and Mexico
Source: Company website & reportsMarriott – Company profile
FY 2010
35
Extended stay, midscale brand►Mainly targeting business and leisure travelers
staying 5 or more days
Key figuresFY 2010► ADR: 80.0$► RevPar: 55$► Occupancy: 68.7%
Mostly fitted out with►Fully equipped kitchen, Free hot breakfast►Swimming pool and Sport court►Self-serve business center, Free in-room high
speed Internet and Wi-fi access in the lobby►Free grocery shopping services, Laundry facilities►24-hour staff, trained ►Housekeeping services
Main competitors►Suitehotel, Homewood Suites, Hawthorn Suites,
Baymont Inn & Suites
11. Brands descriptionExtended stay – TownePlace Suites
Overview Network
Network► 184 hotels / 18,451 rooms in operation
= 100 rooms per hotel in average
Geographical breakdown► Only in the US (41 states)
Source: Company website & reportsMarriott – Company profile
FY 2010
36
Timeshare, upscale brand►Full-serviced villas featuring living and
dining areas,1/2/3 bedrooms, a full kitchen, washer/dryer units
►Purchase of 1 week or more►Incorporates “Horizons” since 2009
Network:►53 properties / 11,918 units in operation
= 225 units per property on average►More than 312,000 owners
Locations►Resort destinations: US, Aruba, France,
Spain, St. Thomas, West Indies, Thailand
Prices►Average weekly price of $26,500
Timeshare, luxury brand►Functioning on basis of fractional
ownership. Club members have also benefits at Ritz-Carlton H&R worldwide
Network:►14 properties / 729 units in operation
=52 units per property on average
Locations►In the world’s most picturesque cities and
in resort destinations
Prices►Membership: from $100,000 to $800,000►3- to 5-weeks ownership fractions: from
$144,000 to 545,000
11. Brands descriptionTimeshare
Overview Overview
Timeshare, upper-upscale brand► Functioning on basis of fractional
ownership. ► 3 to 13 week ownership fractions
Network► 4 properties / 316 units in operation
= 79 units per property on average
Locations► Regional second home destinations
Prices► From $100,000 to $600,000
Source: Company website & reports
Overview
Marriott – Company profileFY 2010
37
12. Organisation COMEX
Source: Company website
Name Position
J. W Marriott, Jr Chairman of the Board and Chief Executive OfficerArne Sorenson Chief Operating OfficerCarl Berquist Chief Financial OfficerAnthony Capuano Global DevelopmentSimon Cooper The Ritz Carlton Hotel CompanyEdwin Fuller Managing Director, International LodgingRobert McCarthy The Americas and Global Lodging ServicesAmy McPherson Managing Director, European DivisionDavid Rodriguez Global Human ResourcesEdward Ryan General CounselWilliam Shaw Vice ChairmanStephan Weisz Marriott Vacation Club
Marriott – Company profileFY 2010