Choose One Of Hospitality Groups To Conduct An Overview Analysis Of The Hotel, F&B And Hk Departments.pdf

Overview Analysis And Assessment Of MarriottOverview Analysis Of The Hotel, F&B And HK Departments Overview Marriott is a worldwide operator, franchisor, and licensor of hotel, residenti

FPT UNIVERSITY- CAMPUS CAN THO

of customer segments and marketing orientation for hotels

Name of group member Contribution (%)

1 Trần Thanh Thiên Tuệ 100 %

TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

OVERVIEW ANALYSIS AND ASSESSMENT OF MARRIOTT 4

O VERVIEW A NALYSIS O T F HE H OTEL , F&B A ND HK D EPARTMENTS 4

Overview 4

Corporate Structure and Business 4

Franchised and Licensed Properties 5

Residential 5

Intellectual Property 5

Core Values: 6

Mission: 6

Vision: 6

Brand Portfolio: 6

Department Overview: 7

S CORING A SSESSMENT O T F HAT H OTEL /C ONGLOMERATE 7

Financial Performance 7

Customer orientation 12

Marriott: A Company Focused On Customer Experience 12

MARRIOTT FEEDBACK ORM F 14

Management Capability 15

Learning & Growth 25

A SSESSMENT O C F USTOMER S EGMENTS A ND M ARKETING O RIENTATION F OR H OTELS 28

Customer Segments 28

Competition 31

SWOT analysis: 32

Market Approach 33

Competition advantage 33

Differentiation 34

Cost Leadership 34

Target market 34

Marketing orientation 35

CONCLUSION 36

WORKS CITED 37

3GROUP 5

Executive Summary

Marriott, the largest firm in the hotels and resorts industry, operates through franchisingand licensing, focusing on delivering high-quality travel experiences Despite externalchallenges like the pandemic and global conflicts, the industry's profit potential isexpected to increase as travel resumes However, Marriott faces threats from substitutesand fierce competition Nevertheless, the company's established power within theindustry presents opportunities

Differentiation is crucial in an industry with little differentiation between competitors anddiverse price points Marriott differentiates itself through its extensive brand portfolio,offering unique experiences through luxury and cost-effective options Its loyaltyprogram, Marriott Bonvoy, enhances customer loyalty and adds value across its brands

At the corporate level, Marriott emphasizes sales and marketing operations, creatingvalue through its franchising model and rewards system By connecting franchises andcompany-owned hotels, Marriott creates a global ecosystem that benefits hotel operatorsand customers alike

Organizational controls ensure effective management The Board of Directors, consisting

of independent and insider members, provides oversight and aligns shareholder interests.Performance-based compensation minimizes conflicts of interest

Marriott's focus on customer loyalty, brand differentiation, and global expansionpositions it well in the industry By leveraging its diverse brand portfolio, loyaltyprogram, and mergers and acquisitions, Marriott sustains growth and competitiveadvantage Organizational controls and the new headquarters support effectivemanagement and innovation Despite challenges, Marriott remains poised for continuedsuccess in the hotels and resorts industry

Overview Analysis And Assessment Of Marriott

Overview Analysis Of The Hotel, F&B And HK Departments

Overview

Marriott is a worldwide operator, franchisor, and licensor of hotel, residential, timeshare,and other lodging properties in 138 countries and territories under 30 brand names Underour asset-light business model, we typically manage or franchise hotels, rather than ownthem We discuss our operations in the following reportable business segments: (1) U.S

& Canada and (2) International

Terms of their management agreements vary, but our management fees generally consist

of base management fees and incentive management fees Base management fees aretypically calculated as a percentage of property-level revenue Incentive managementfees are typically calculated as a percentage of a hotel profitability measure, and, in manycases (particularly in our U.S & Canada, Europe, and Caribbean & Latin Americaregions), are subject to a specified owner return Under our franchise agreements,franchise fees are typically calculated as a percentage of property-level revenue or aportion thereof Additionally, we earn franchise fees for the use of our intellectualproperty, such as fees from our co-branded credit card, timeshare, and residentialprograms

On September 23, 2016, Marriott completed the acquisition of Starwood Hotels &Resorts Worldwide, LLC, formerly known as Starwood Hotels & Resorts Worldwide,Inc (“Starwood”), through a series of transactions, after which Starwood became anindirect wholly-owned subsidiary of the Company

Corporate Structure and Business

The company is a global operator, franchisor, and licensor of various lodging properties.They own or lease a small percentage of their properties and primarily operate undermanagement or lease agreements They earn management fees based on a percentage ofhotel revenues and incentive fees based on hotel profits The agreements typically last 20

to 30 years with renewal options Lease agreements may include fixed rentals plusadditional rentals based on a percentage of annual revenues The company is responsiblefor hiring, training, and supervising staff, purchasing supplies, and providing centralizedprograms and services, with owners reimbursing the costs

5GROUP 5

Franchised and Licensed Properties

The company has franchising and licensing arrangements that allow hotel owners andoperators to use their lodging brand names and systems They receive initial applicationfees and ongoing royalty fees, typically ranging from four to seven percent of roomrevenues for all brands, and an additional two to three percent of food and beveragerevenues for certain full-service brands Franchisees contribute to centralized programsand services such as the Marriott Bonvoy loyalty program, reservations, and marketing.They also receive royalty fees from license agreements with Marriott VacationsWorldwide Corporation and its affiliates for certain brands Additionally, they receiveroyalty fees under agreements for The Ritz-Carlton Yacht Collection As of year-end

2022, the company had 6,122 franchised and licensed properties with 937,683 rooms andtimeshare units

Residential

Marriott uses or licences their trademarks for the sale of residential real estate, often inconjunction with hotel development, and receive branding fees for sales of such brandedresidential real estate by others Third-party owners typically construct and sellresidences with limited amounts, if any, of their capital at risk They have used orlicensed the JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W, The LuxuryCollection, St Regis, EDITION, Bvlgari, Renaissance, Le MVridien, Marriott, Sheraton,Westin, Four Points, Delta Hotels by Marriott, Autograph Collection, and TributePortfolio brand names and trademarks for residential real estate sales At year-end 2022,

we had 113 branded residential communities (11,481 residential units), for which wetypically manage the related homeowners’ associations

Intellectual Property

The company recognizes the competitive nature of the industry and places greatimportance on their brand names, trademarks, service marks, trade names, and logos.They believe that these intellectual properties represent exceptional quality, care, service,and value to their customers, guests, and the traveling public As a result, they takemeasures to register and protect their intellectual property where necessary and safeguardagainst unauthorized use This is done to maintain the integrity and reputation of theirbrands in the market

Marriott International takes centre stage as a global hospitality titan, boasting anextensive range of hotel brands tailored to various market segments, spanning fromopulent luxury to select service.

Core Values:

Marriott's operational foundation rests upon its core values:

1 Putting People First: Marriott emphasises the importance of its employees and guests,they focus on delivering the best experience possible for both parties

2 Pursuing Excellence: Marriott never stops chasing excellence in their operations, itcould be keeping the exceptional customer service or initiating sustainabilities

3 Acting with Integrity: Integrity acts as Marriott guidance principle when interactingwith its guests, employees and investors

4 Serving Our World: Dedicating the operation to make positive impacts to thecommunities where they served around the world

Mission:

Marriott’s mission is to make itself the first choice when it comes to finding a place tostay in the global market, offering unrivalled experiences that are deeply memorable tothe guests

Vision:

Marriott focuses on being the pioneer in the hospitality industry by always innovatingand delivering spectacular services through the brand's diverse portfolio of brands

Brand Portfolio:

Marriott's portfolio offer a wide variety of options depends on what the guests prefer to :

1 Luxury Brands: Ritz-Carlton, St Regis, JW Marriott

2 Premium Brands: Marriott Hotels & Resorts, Renaissance Hotels, Sheraton

3 Select Service Brands: Courtyard by Marriott, Fairfield Inn & Suites, AC Hotels

4 Extended Stay Brands: Residence Inn, TownePlace Suites

5 Boutique & Lifestyle Brands: W Hotels, Edition, Mox

7GROUP 5

Department Overview:

- Hotel Department: In this department, the guest service and reservations are closelymanaged as well as keeping the maintenance and housekeeping department runningsmoothly They also responsible for offering the guests exceptional accommodations andservices

- Food & Beverage (F&B) Department: F&B department allowing the restaurant, bars

or catering services inside the hotel to operate to their full potential, making sure theguests will have an unforgettable dining experience

- Housekeeping (HK) Department: HK department maintains the cleanliness of thewhole place and ensures that there will be no discomfort for the guests during their stay

Scoring Assessment Of That Hotel/Conglomerate

Financial Performance

Financial Statements and Supplementary Data

9

11

Customer orientation

Marriott has always been at the forefront of providing innovative services and innovativeproducts Having recently entered the online booking market, their recent efforts havekept them ahead of the curve while maintaining an excellent level of service for guests Marriott: A Company Focused On Customer Experience

Marriott has always made it a top priority to meet the needs of its customers As a result,

it has built a reputation for providing exceptional customer service, introducinginnovative technologies early on, and implementing them right away Guests haveenjoyed a seamless, personalized experience as a result of this attention to detail

Marriott Guest Reviews

Marriott Guest Reviews is an online platform where guests can leave reviews andfeedback about their stay at Marriott properties around the world Guests can rate their

13GROUP 5overall experience, as well as specific aspects of their stay such as the room, service, andfood

Marriott Feedback Form

The Marriott Feedback Form is a great way to let the Marriott team know what you thinkabout their services The form is short and easy to fill out, and it only takes a few minutes

to complete

Management Capability

Human Capital Management

Marriott has a long-standing commitment to its associates, focusing on theirdevelopment, well-being, and career growth The company has faced staffing challengesdue to factors such as the ongoing impact of the COVID-19 pandemic, a changing work

15GROUP 5

environment, and a competitive talent landscape In response, Marriott has placed astrong emphasis on talent attraction and retention strategies while reinforcing its culture

to position itself for future growth

At the end of 2022, Marriott managed the employment of approximately 377,000associates worldwide This includes 140,000 associates directly employed by Marriott atproperties, customer care centers, and above-property operations Additionally, therewere 237,000 associates who were employed by property owners but managed byMarriott (a common practice outside the U.S.) Within the U.S., approximately 111,000associates were employed by Marriott, with around 18,000 belonging to labor unions.Outside the U.S., some associates are represented by trade unions, works councils, oremployee associations It's important to note that these numbers do not include hotelpersonnel employed by Marriott franchisees or management companies hired byfranchisees

Marriott places a strong emphasis on being an employer of choice for both job seekersand existing associates To attract talent, the company targets new labor pools, optimizesrecruiting practices, and shares the story of long-term career potential within theorganization With the opening of their new global headquarters in Bethesda, Maryland,Marriott has adopted a hybrid work model to provide increased flexibility and choice tomeet the evolving needs of their corporate workforce

For hotel-based associates, Marriott is innovating the way hotel jobs are structured toincrease associate satisfaction and enhance service for guests They encourage continualfeedback discussions with associates at all levels and measure associate satisfactionthrough the Associate Engagement Survey This survey provides all associates with theopportunity to provide feedback about their work experience, enabling valuable insights

to drive improvements in the company's culture

Marriott's efforts in promoting associate engagement and satisfaction have beenrecognized externally Their associate engagement scores have consistently exceeded the

"Best Employer" benchmark, and they were recognized as one of the Fortune BestCompanies to Work for in 2022, marking their 25th consecutive year receiving thishonor This recognition highlights Marriott's ongoing commitment to creating a positiveand fulfilling work environment for its associates

Human capital strategy is based on three signature elements – Growing Great Leaders,Investing in Associates, and Access to Opportunity

Internal Control Over Financial Reporting

Management of Marriott International, Inc (the “Company”) is responsible forestablishing and maintaining adequate internal control over financial reporting and forassessing the effectiveness of internal control over financial reporting The Company hasdesigned its internal control over financial reporting to provide reasonable assurance onthe reliability of financial reporting and the preparation of the consolidated financialstatements in accordance with U.S generally accepted accounting principles

The Company’s internal control over financial reporting includes those policies andprocedures that: (1) pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the Company’s transactions and dispositions of theCompany’s assets; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of the consolidated financial statements in accordancewith U.S generally accepted accounting principles, and that receipts and expenditures ofthe Company are being made only in accordance with authorizations of the Company’smanagement and directors; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorized acquisition, use, or disposition of the Company’s assetsthat could have a material effect on the consolidated financial statements

Risks assessment

Risks Relating to the Industry

The industry is highly competitive, which may impact our ability to compete successfullyfor guests We operate in markets that contain many competitors Our hotel brands andother lodging offerings generally compete with major hotel chains, regional hotel chains,independent hotels, and home sharing and rental services across national andinternational venues Our ability to remain competitive and attract and retain business,group and leisure travelers depends on our success in distinguishing and drivingpreference for our lodging products and services, including our Loyalty Program, directbooking channels, consumer-facing technology platforms and services, and otherofferings (including our co-branded credit cards) If we cannot compete successfully inthese areas, our operating margins could contract, our market share could decrease, andour earnings could decline Further, new lodging supply in individual markets could have

a negative impact on the hotel industry and hamper our ability to maintain or increaseroom rates or occupancy in those markets

Economic downturns and other global, national, and regional conditions and events couldfurther impact our business, financial results and growth Because we conduct ourbusiness on a global scale, we are affected by changes in global, national, or regional

17GROUP 5

economies, governmental policies (including in areas such as trade, travel, immigration,healthcare, and related issues), and geopolitical, public health, social and other conditionsand events Our business, financial results and growth are impacted by weak or volatileeconomic conditions, pandemics and other outbreaks of disease, natural and man-madedisasters, changes in energy prices and currency values, political instability, geopoliticalconflict, actual or threatened war, terrorist activity and other acts of violence, heightenedtravel security measures, travel advisories, disruptions in air travel, and concerns over theforegoing These conditions and events have in the past materially negatively impacted,and could in the future materially negatively impact, our business, operations, andfinancial results in many ways, including, but not limited to, as follows:

● reducing revenues at our managed and franchised hotels, owned and leased hotels,and properties in which we have an investment, potentially impacting their ability

to meet expenses, including payment of amounts owed to us;

● adversely affecting the value of our owned and leased properties or investments;

● affecting the ability or willingness of hotel owners and franchisees to service,

or similar obligations, including loans or guaranty advances we have made to orfor them;

● making it more difficult for hotel owners and franchisees to obtain financing on

all;

● causing hotel construction and opening delays;

● decreasing the rate at which new projects enter our pipeline;

● causing hotels to exit our system;

● requiring us to borrow or otherwise raise a significant amount of cash in order topreserve financial flexibility, repay maturing debt and manage debt maturities;

● causing the terms of our borrowing to be more expensive or more restrictive; and

● adversely affecting associate hiring and retention

Although COVID-19’s negative impact on our business, operations, and financial resultshas significantly decreased since 2020, we are continuing to see some of the foregoingeffects and could see additional effects in the future The conditions and events discussed

in this risk factor could also give rise to, aggravate, and impact our ability to allocateresources to mitigate the other risks that we identify below, which in turn couldmaterially adversely affect our business, liquidity, financial condition, and results ofoperations

Risks Relating to Our Business