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About Renaissance Hotel Operating Company, Inc

Marriott International is one of the world's leading hoteliers. The company operates or franchises some 6,900 hotel, residential, and timeshare properties worldwide. Its hotel portfolio, which comprises some 1.3 million guest rooms, includes the premium Sheraton and Renaissance Hotels brands and its flagship Marriott Hotels & Resorts as well as the Ritz-Carlton, W Hotels, The Luxury Collection, and St. Regis luxury brands. Additionally, the company operates the select-service and extended-stay brands Courtyard and Fairfield Inn. It also manages about 80 golf courses. North America accounts for about 80% of Marriott International's revenue. 

Operations

Marriott International operates through three reportable business segments: North American Full-Service, North American Limited-Service, and Asia/Pacific segment. 

The North American Full-Service generates more than 60% of Marriott International's total revenue. It includes Marriott's luxury and premium brands (JW Marriott, The Ritz-Carlton, W Hotels, and others) located primarily in the US and Canada.

The North American Limited-Service segment accounts for more than 15% of sales and consists of Courtyard, Residence Inn, Fairfield Inn & Suites, and other hotels in the US and Canada.

The Asia/Pacific segment, which has hotels in Indonesia, China, India and Japan, accounts for around 5% of sales. Other operations, including corporate and international operations in EMEA, Latin America, and beyond, account for about 10% of sales but are not part of Marriott International's core reportable business units. 

Geographic Reach

Marriott International's presence extends to more than 130 countries in North America, Latin America, the Caribbean, Europe, the Middle East and Africa, and Asia Pacific.

Operations in North America account for 80% of total company revenue. 

Sales and Marketing

Marriott International's marketing activities include email, online advertising, and postal mailing. It encourages cross-brand loyalty via a point-based membership scheme based on money spent at hotels, on timeshare intervals, fractional ownership, and residential products. 

The company's advertising costs were $660 million in 2018, up slightly from $562 million the prior year. 

Financial Performance

Over the past five years, Marriott International's revenue has trended upwards. Revenue spiked in fiscal 2017 following its acquisition of Starwood Hotels & Resorts, which added billions to its top line. Company profits also benefited from the acquisition, nearly doubling with the acquisition. 

Revenue growth slowed in 2018 with the company reporting a 1% uptick to $20.7 billion over 2017 results. Modest increases in franchise fees as well as base management and incentive management fees (percentages of revenue earned in exchange for services Marriott provides to its managed hotels) across its three operating units drove the company's mild top-line increase. 

A lower income tax rate in 2018 helped push net income up 31% to $1.9 billion over 2017 results, which incurred a one-off income tax expense not deducted in 2018. Excluding adjustments for income taxes, Marriott International's income fell 21% during the period.

Cash on hand at the end of 2018 was $360 million, down $69 million from cash at the end of the previous year. Operating activities added $2.3 billion to the coffers, while investing activities used $52 million and financing activities used $2.3 billion, mostly for the purchase of treasury stock. 

Strategy

Building on the momentum of its of 2016 Starwood Hotels and Resorts acquisition, Marriott International is pushing ahead with an aggressive growth plan to open more than 1,700 hotels around the world by 2021. The Starwood acquisition boosted Marriott's international presence, particularly in the Asia-Pacific region, and the company is now looking to expand its geographic footprint in the region by opening hotels in China (which accounts for 50% of the company's Asia-Pacific presence), India, Indonesia, Australia, the Philippines. The company is also planning to open 100 new properties in the Middle East by 2023.

Hotel rooms are not the only thing Marriott has to offer. To compete with HomeAway and Airbnb, in 2019 the company expanded into the home rental business through its Homes & Villas unit. Homes & Villas offers guests premium and luxury home rentals in more than 100 destinations in the US, Europe, the Caribbean, and Latin America. Its more than 2,000 unique homes range from four-bedroom cottages in California wine country to an 18th century Irish Castle that sleeps more than a dozen guests. Marriott's home rentals are offered at higher price points than many of its hotel rooms and boast an average guest stay that's three times longer than the average hotel stay. 

Company Background

Marriott International began in 1927 as a Washington, DC, root beer stand operated by John and Alice Marriott. Later they added hot food and named their business the Hot Shoppe. In 1929 the couple incorporated and began building a regional chain.

Hot Shoppes opened its first hotel, the Twin Bridges Marriott Motor Hotel, in Arlington, Virginia, in 1957. When the Marriotts' son Bill became president in 1964 (CEO in 1972, chairman in 1985), he focused on expanding the hotel business. The company changed its name to Marriott Corp. in 1967.

Marriott split its operations into two companies in 1993: Host Marriott to own hotels, and Marriott International primarily to manage them. However, Marriott International still owned some of the properties, and in 1995 it bought 49% of the Ritz-Carlton luxury hotel group.

In 1998, after the division of its lodging and food distribution services, the new Marriott International then began trading as a separate company. That year Marriott also acquired the rest of Ritz-Carlton.

Renaissance Hotel Operating Company, Inc

10400 FERNWOOD RD
Bethesda, MD 20817-1102
Phone: 1 (301) 380-3000

Firm Stats

Employer Type: Privately Owned
Assistant: David L Buckley
Manager: Sharon Garner
Secretary: Elmo G St
Employees (This Location): 750
Employees (All Locations): 32,000

Major Office Locations

Bethesda, MD

Other Locations

Phoenix, AZ
Indian Wells, CA
Washington, DC
Orlando, FL
Baton Rouge, LA
New Orleans, LA
Baltimore, MD
Saint Louis, MO
Elizabeth, NJ
Cleveland, OH
Charleston, SC
Nashville, TN
Dallas, TX
Houston, TX