Transcript Document

Marriott
International Inc.
FY 2010
Mars 2011
Marriott vs. its main competitors
Network
Pipeline
EMEA
APAC
13%
19%
Americas
68%
In ‘000
rooms
Vs
end 2009
205
-3%
138
+6%
105
+5%
103
-5%
507
101
0%
495
85
0%
302
51
-24%
Pipeline
In ‘000
rooms
647
208 Kr
(1)
83%
613
8%7%
85%
605
10% 4%
~600
86%
56%
16%
28%
Rooms pipeline
as of FY2010
Rooms network
as of FY 2010
(2)
8% 9%
366Kr
7%5%
20%19%
88%
61%
(1) Hilton geographical breakdown based on 2009 figures
NB: Figures include traditional lodging and extended stay units but exclude timeshare products
The 3rd largest global hotel group, the second
if we include Timeshare segment (618 Kr)
Source : Companies annual reports except for Hilton network, Accor internal data
2
(2) Hilton pipeline based on an internal press release, January 2011
An increasing pipeline vs. 2009 in line with its
key competitors
Marriott Hotels & Resorts Worldwide Inc.
Summary
3
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
Marriott – Company profile
FY 2010
1. Company overview
# rooms
segment
# hotels
Mid-Lux
3,545
618,104
ADR
Revpar
OR
67.8%
128.8$
Description
87.3$
Ownership
– American leading global player in the hospitality business
Owners
– 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)
Stake
Float
78%
Marriott (J W Jr)
T.Rowe Price Associates , Inc
Marriott (Richard E)
14%
13%
7%
Public company since 1998, listed on the Nasdaq Stock Exchance
– 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
Main Figures
2009
2010
Revenue breakdown
2011E
2012E
Revenues by segment
Financials (M$)
Revenue
% Change in Revenue
EBITDA
EBITDA margin
Net Profit
Net margin
10,908
11,691
11,010
11,859
-15.3%
7.2%
-5.8%
7.7%
898
1,044
1,174
1,369
8.2%
8.9%
10.7%
11.5%
342
435
528
650
3.1%
3.7%
4.8%
5.5%
Market Data (M$)
Market Cap
13%
11%
44%
18%
North American Full Service
North American Limited Service
International
Luxury
Timeshare
Other
3,420
3,545
595,461 618,104
M arket Data as o f A pril 28, 2011
4
13%
13,880
Network
Hotels
Rooms
1%
Sources: Marriott Annual Report 2010, Reuters
Marriott – Company profile
FY 2010
2. Company organization
Other
activities
*
Marriott A&C
Luxury
5
North America
Full service
* Marriott manages 42 golf courses
Source: Marriott Annual Report 2010
North America
Limited service
Marriott – Company profile
FY 2010
International
Timeshare
segment
3. Brand positioning
2h.
105h.
Luxury
(4% of room
network)
1h.
14h.
13h.
(1)
49h.
4h.
23h.
Upscale
(57% of room
network)
494h.
11h.
613h.
53h.
146h.
892h.
Midscale
(39% of room
network)
274h.
193h.
658h.
Limited
Service
Full
Service
Lodging
6
Source: Marriott Annual Report 2010
(1) Only short term lease agreements with apartment
owners and managers
Serviced
Apartments
Extended
Stay
Extended Stay
Marriott – Company profile
FY 2010
Timeshare
Timeshare
4. Room portfolio
Breakdow n
by brand
Category
Geographical repartition (italic=estimation)
ACCOR
Brand
Hotels
Room s
(fo r example)
Hotel av
Size
Europe
H
Upscale & Luxury
Bulgari
Luxury
Ritz-Carlton
Luxury
EDITION
Luxury
Autograph Collection
Sofitel
R
H
821
284 912
347
131
40 704
2
117
59
1
58
105
25 587
244
9
2 545
1
353
Americas
R
515
H
190 378
R
60
H
18 511
H
R
25
Mnged
Fchised
27 694
1
59
0%
100%
0%
18
5 089
3%
97%
0%
353
0%
100%
0%
13
346
3 828
140 051
0%
0%
100%
11
3 298
294
Marriott H&R / JW Marriott
Marriott Conference centers
Upscale
Pullman
11
3 298
300
Renaissance
Upscale
Pullman
370
89
27 409
1 414
90
Ow ned
& Leased
1
3 828
200 721
5
7 625
R
353
13
543
1 979
Asia Pac.
14 560
Pullman
Pullman
7
Operating m ode-%room
Af. Mdle-East
66
Upscale
Upscale
Midscale
United States
45
13 859
18
5 543
45
13 859
2%
63%
34%
4%
63%
33%
146
51 008
349
32
10 692
78
28 288
8
2 673
2
668
26
8 687
1 824
222 899
122
39
7 814
1 716
202 105
43
7 771
2
401
24
4 809
39
7 814
2
401
24
4 809
Courtyard
Ltd-Service
Mercure
892
131 069
147
795
111 634
32
6 412
3%
39%
58%
SpringHill Suites
Ltd-Service
Suitehotel
274
32 085
117
273
31 961
1
124
0%
16%
84%
Up. Eco.
Ibis
658
59 745
91
648
58 510
10
1 235
0%
2%
98%
2 645
507 811
192
170
48 518
2 231
392 483
103
26 281
27
8 026
114
32 503
787
90 891
23
3 321
3
492
12
1 970
4
657
3
492
12
1 970
0%
97%
3%
0%
26%
74%
0%
19%
81%
Fairfield Inn
Total Lodging
Extended Stay
Executive Appart.
Residences Inn
Tow nePlace Suites
829
97 330
117
4
657
Up. Upscale
23
3 775
164
4
657
Up. Mid.
613
74 130
121
193
19 425
101
71
12 963
183
Midscale
Tim eshare
The Ritz-Carlton Club
Suitehotel
595
71 571
18
2 559
192
19 320
1
105
6
1 012
56
11
10 648
581
7
3
918
148
4
770
Luxury
14
729
52
Vacation Club
Up. upscale
53
11 918
225
5
963
42
9 800
Grand-Residences
Up. upscale
4
316
79
1
49
3
267
3 545
618 104
182
Total
Occupancy rate
Average Daily rate ($)
RevPar ($)
7
Source: Marriott Annual Report 2010
0
2009
2010
Var
64,2%
128,9
82,8
67,8%
128,8
87,3
3,6
(0,1%)
5,4%
Marriott – Company profile
FY 2010
0
2
385
2
385
TS = 2% of total netw ork
0%
100%
0%
0%
100%
0%
0%
100%
0%
2%
46%
52%
5. Operating mode
Evolution 2005 - 2010
Global network per operating mode
(In room number)
Network 2005
Network 2010
499,165 rooms / 2,741 h
618,104 rooms / 3,545 h
2%
2%
52%
46%
52%
+118,939 rooms
+24% over 5 years
Owned & Leased
8
Source: Marriott Annual Reports 2005 and 2010
Management
Marriott – Company profile
FY 2010
Franchise
46%
5. Operating mode
Main Brands, 2009 FY
Brand
9
Source: Marriott Annual Report 2010
Hotels
Rooms
Ownership by brand
105
25,587
49
21,987
494
178,734
3%
146
51,008
4%
892
131,069
613
74,130
193
19,425
658
59,745
2%
274
32,085
16%
3%
Owned
Managed
Franchised
97%
Owned
Managed
Franchised
89%
60%
37%
64%
32%
58%
3% 39%
26%
19%
Marriott – Company profile
FY 2010
74%
81%
98%
84%
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
6. Group strategy (1/3)
Network 2000
2,100 hotels
390,000 rooms
– +1,445 hotels and 228,104 rooms
– Brand value for customers and owners
– Innovative loyalty programs
– Development by brand conversion &
new building
3,545 hotels
618,104 rooms

Spin-off of Timeshare activity forecast for 2011 but no further
information
Investments

$[500-700]m (incl. 50-100 for maintenance Capex)
Guidance
Guidance openings
openings

35 k r. in 2011 vs. 30 k r. in 2010

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)

Excess cash return to shareholders through repurchase rather than
dividends
Timeshare Strategy
Debt monitoring
Share
Share Buybacks
Buybacks
10
Network 2010
Source: Marriott Press release Q4 2010
Marriott – Company profile
FY 2010
6. Group strategy (2/3)
1

2

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
–
11
‘ 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.
3

Operating type: development trough management contracts rather than franchise (very
few owned properties)
4

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
Source: Press review
Marriott – Company profile
FY 2010
6. Group strategy (3/3)
Development by geographic area
USA : 86% of the limited service pipeline
APAC : 45% of the full service pipeline
Marriott plans to double its budget and
midscale presence in NYC adding 13
properties, i.e. + 2,900 rooms by 2013
Aggressive 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
EMEA : 18% of full service pipeline
Courtyard 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
12
Source: Press review
Marriott – Company profile
FY 2010
7. Pipeline and lodging development
Development in 2010
Opening 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)
Pipeline Limited service: 69 Kr.(1)
Pipeline Full service: 32 Kr.
Europe
9%
22%
Middle East
Africa
North America
5%3%
3% 3%
Europe
Middle East
Africa
North America
47%
Latin America
Latin America
7% 15%
13
APAC
(1) Lodging Q3 2010 excl.Openings 2010
Sources: Marriott Annual Report 2010, Lodging Q3 2010
86%
Marriott – Company profile
FY 2010
APAC
8. Key figures
P&L evolution & forecasts
Financials (in M€)
Revenue
2000A
7,911
2001A
7,768
2002A
8,415
2003A
9,014
2004A
10,099
2005A
11,129
2006A
11,995
2007A
12,990
2008A
12,879
2009A
10,908
2010A
11,691
2011E
11,010
2012E
11,859
69.3%
NA
NA
12.0%
10.2%
7.8%
8.3%
-0.9%
-15.3%
7.2%
-5.8%
7.7%
1,075
854
573
530
646
883
1,275
1,397
1,298
898
1,044
1,174
1,369
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%
479
236
277
502
594
543
712
697
359
342
435
528
650
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%
% Change in Revenue
EBITDA
EBITDA margin
Net Profit
Net margin
So urces: co mpany repo rts and Reuters co nsensus estimates as o f A pril 28, 2011
14
Source: Reuters
Marriott – Company profile
FY 2010
CAGR 2003-2010
3.8%
10.2%
-2.0%
8. Key Figures
Lodging Fees
1200
281
182
201
316
142
202
162
620
109
383
388
379
372
200
208
220
232
245
2000
2001
2002
2003
635
553
600
400
311
154
1000
800
369
530
562
497
435
329
390
439
451
296
400
441
2004
2005
2006
2007
2008
2009
2010
0
Incentive Mngt Fees
Base Mngt Fees
Franchise Fees
Fees
Total Fees
Incentive Mngt Fees
Franchise Fees
Base Mngt Fees
15
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
907
316
208
383
794
202
220
372
773
162
232
379
742
109
245
388
873
142
296
435
1027
201
329
497
1224
281
390
553
1428
369
439
620
1397
311
451
635
1084
154
400
530
1185
182
441
562
Source: Marriott Annual Report 2010
Marriott – Company profile
FY 2010
9. SWOT analysis
Strength
Weaknesses
– 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
– Weak innovation capacity
– Overdependence on the North American market (80%
of global room portfolio)
Opportunities
Threats
– 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 fullservice 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
16
Sources: Global market information
database by Euromonitor, broker research
– 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
Marriott – Company profile
FY 2010
10. Company history
2009
2007
2005
2004
2002
1999
1998
1997
1995
1993
1989
1988
1987
1984
1957
1953
1939
1937
1927
17
Launch of the Autograph Collection, an upper-upscale full-service brand of independent hotels
Partnership with Nickelodeon to co-develop a new lodging resort brand for travelers seeking fun
Partnership with designer Ian Schrager to create a lifestyle boutique hotel brand called Edition
Joint venture with Whitbread PLC to acquire Whitbread’s portfolio of 46 franchised Marriott and
Renaissance hotels; JV sold to RBS in 2006
Purchase of 32 hotels and JV interests from CTF Holdings
Ramada is sold to Cendant
Exit of Marriott Marriott Distribution Services
Acquisition of ExecuStay and launch of corporate housing business
Ownership interest in the Ritz-Carlton Company LLC rises to 98 %
Acquisition of the Renaissance Hotel group (Renaissance, Ramada international, New World)
Acquisition of a 49% interest in the Ritz-Carlton Hotel Company
Split of operations between 2 companies: Marriott International & Host Marriot Corp.
Global corporate restructuring: rfocus on mega-markets in lodging and contract services
Development of facilities management
Development of Senior rental and living services
Acquisition of The Residence Inn Company, all-suite hotel chain targeting extended stay travelers
Development of Timeshare
Development of Hospitality
Public Offering
Development of Food Service Management
Development of Air Catering
J.W. Marriott starts a food service management business named the Hot Shoppe Inc
Marriott – Company profile
Source: Marriott’s Factbook
FY 2010
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 :
Marriott International Inc.
Host Marriott Corporation
which is formed to manage and operate
various brands of Marriott hotels
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
Host has continued to acquire full service hotels
while 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
18
Source: Marriott Website
1967
Marriott – Company profile
FY 2010
1993
1995
1998
1999
11. Brands description
The Ritz-Carlton
Edition
Bulgari
Autograph
JW Marriott H&R
Courtyard
Marriott H&R
SpringHill Suites
Conference Center
Fairfield
Renaissance H&R
AC Hotels by
Marriott
ExecuStay
Residence Inn
Executive Apartments
TownePlace Suites
The Ritz-Carlton Club
Vacation Club
Lodging Brands
Extended Stay
Timeshare
Grand Residences
19
Source: Marriott Annual Report 2010
Marriott – Company profile
FY 2010
11. Brands description
Full-service – The Ritz-Carlton
Overview
Network
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.
Network
Key figures
Locations
FY 2010 North AM
► ADR: 280.1$
►Occupancy: 67.6%
►RevPar: $189.3
FY 2010 International (1)
► ADR: $310.5
►Occupancy: 64.0%
►RevPar: $198.82
► 77 hotels + 28 residences / 25,587 rooms
= 244 rooms per hotel in average
► Mainly in key city centers or in resort locations
Geographical breakdown
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
10%
US
5%
MEA
57%
►The Waldorf=Astoria Collection, Four Seasons,
Fermont Hotels
Source: Company website & reports
(1) Includes Bulgari Hotels
Americas
8%
Main competitors
20
Europe
20%
Marriott – Company profile
FY 2010
APAC
11. Brands description
Full-service – Bulgari Hotels & Resorts
Overview
Network
Full service, luxury brand
Network
►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
► 2 hotels / 117 rooms in operation
= 59 rooms per hotel in average
Locations
►Only in prime locations
Main competitors
►Park Hyatt, independent Boutique Hotels
Geographical breakdown
► 1 hotel in Milan, 1 in Bali
►2 restaurants in Tokyo, in connection with 2
Bulgari retail stores
21
Source: Company website & reports
Marriott – Company profile
FY 2010
11. Brands description
Full-service – Autograph Collection
Overview
Full service, upper-upscale & luxury brand
Network
►Launched in November 2009
► 13 h, 3,828 r
►Diverse collection of independent and unique
hotels, whether they are resort, historic hotel,
boutique arts or urban-edge hotel in a dynamic
gateway city
Locations
►Partnership with the Kessler Collection: 7 hotels
will join the Autograph Collection. These 7 hotels
are located in the US
22
Network
Source: Company website & reports
►Footprint: US only
►Targeted locations: major cities and desired
destinations worldwide
Marriott – Company profile
FY 2010
11. Brands description
Full-service – Edition
Overview
23
Network
Full service, luxury brand
Network
►Launched in 2007 through an agreement with the
hotel innovator Ian Schrager
►Lifestyle boutique hotels designed by Ian Schrager
and operated by Marriott
► First EDITION hotel opened in Waikiki, Hawaii
(september 2010), followed by an opening in
Istanbul (february 2011)
Source: Company website & reports
Marriott – Company profile
FY 2010
11. Brands description
Full-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
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
Main competitors
►Sofitel, Grand Hyatt, Intercontinental, Westin,
Conrad
24
Source: Company website & reports
Marriott – Company profile
FY 2010
11. Brands description
Full-service – Marriott Hotels & Resorts
Overview
Network
Full service, upscale brand
Network
►Marriott’s global flagship brand, primarily serving
business and leisure upper-upscale travelers
► 494 hotels / 178,734 rooms in operation
= 362 rooms per hotel in average
Key figures (incl. JW properties)
Locations
FY 2010 North Am
► ADR: $143.1
► Occupancy: 66.5%
►RevPar: $95.1
► Mainly in key city centers, airports or resort
locations
Geographical breakdown
► Breakdown includes JW Marriott hotels
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
3%
7%
Americas
MEA
70%
►Pullman, Sheraton, Hilton, Grand Plaza, Hyatt
Regency
Source: Company website & reports
Europe
US
Main competitors
25
13%
7%
Marriott – Company profile
FY 2010
APAC
11. Brands description
Full-service – Marriott Conference Centers
Overview
Network
Full service, upscale brand
Network
►Properties specialized in small- to mid-sized
meetings organization
►In addition to features found in typical Marriott fullservice property, centers include expanding
meeting room space, banquet and dining facitilites
►11 hotels / 3,298 rooms in operation
= 295 rooms per hotel in average
Locations
► Mainly in business cities, in the US only
Mostly fitted out with
►Business center
►Meeting facilities fitted out with latest
communications technology
►Recreational facilities
26
Source: Company website & reports
Marriott – Company profile
FY 2010
11. Brands description
Full-service – Renaissance Hotels & Resorts
Overview
Network
Full service, upscale brand
Network
►Stylish and personalized properties targeting
business and leisure travelers
► 146 hotels, including 2 ClubSport / 51,008 rooms
= 354 rooms per hotel in average
Key figures
Locations
FY 2010 North Am
► ADR: $139.7
►Occupancy: 67.2%
► RevPar: $93.8
► Mainly in downtown locations in major cities, in
suburban office parks, near major gateway airports
and in destination resorts
Mostly fitted out with
Geographical breakdown
►Business center
►Meeting and banquet facilities
►Swimming Pool &Fitness Center
►Distinctive restaurants and lounges
►State-of-the art technology
17%
1%
21%
US
5%
Americas
MEA
Main competitors
►Pullman, Sheraton, Hilton, Radisson, Hyatt
Regency
27
Source: Company website & reports
Europe
56%
Marriott – Company profile
FY 2010
APAC
11. Brands description
Renaissance: Spin-Off Of A Flagship Brand
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
1982
 Launch of Ramada
Renaissance Hotels,
an upscale spin-off
brand of Ramada Inns
28
1993
 Disposal of
the affiliation
 Renaissance
Hotels is now a
stand-alone
brand.
1997
 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).
2006/7
 Launch of a $2
billion renovation
plan.
2009
 Change of logo,
following the
renovation plan,
inspired by the
trend launched by
W hotels.
11. Brands description
Full-service – AC Hotels by Marriott
Overview
JV with AC Hotels, spanish hospitality group
Network
►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
► 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
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
29
Network
Source: Company website & reports
(1) Includes Bulgari Hotels
Ambition
► To become a market leader in Europe and Latin
America in the urban, four-star hotel category
Locations
►Europe and Latin America only
Marriott – Company profile
FY 2010
11. Brands description
Limited-service – Courtyard
Overview
Network
Select-service, midscale brand
Network
►Mostly targeting business travelers. It has recently
been redesigned
►892 hotels / 131,069 rooms in operation
= 147 rooms per hotel in average
Key figures
Locations
FY 2010 North Am
► ADR: $110.0
► RevPar: $72.27
► Occupancy: 65.7%
► Mainly downtown in primary or secondary cities
Geographical breakdown
►Mostly in the US
Mostly fitted out with
► Central courtyard
► Exercise room
► Swimming-pool
►The Market (self-serve store 24h/24)
►The Bistro
0%
5%
4%
6%
Europe
US
Americas
MEA
Main competitors
► Novotel, Hilton Garden Inn, Ramada, Holliday Inn,
Hyatt Place
30
Source: Company website & reports
85%
Marriott – Company profile
FY 2010
APAC
11. Brands description
Limited-service – SpringHill Suites
Overview
Network
Limited service, midscale brand
Network
►All-suites targeting business travelers as well as
leisure travelers
► 274 hotels / 32,095 rooms in operation
= 117 rooms per hotel in average
Key figures
FY 2010
► ADR: $97.32
► RevPar: $63.91
► Occupancy: 65.7%
Geographical breakdown
► Only in North America (The US and Canada)
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
31
Source: Company website & reports
Marriott – Company profile
FY 2010
11. Brands description
Limited-service – Fairfield Inn
Overview
Network
Limited service, midscale brand
Network
►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
►658 hotels / 59,745 rooms in operation
= 91 rooms per hotel in average
Key figures
FY 2010
► ADR: $84.5
► RevPar: $53.3
► Occupancy: 63.1%
Geographical breakdown
► The US (648 hotels), Mexico and Canada
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
32
Source: Company website & reports
Marriott – Company profile
FY 2010
11. Brands description
Extended stay – Executive Apartments & Execustay
Overview
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
33
Source: Company website & reports
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
Marriott – Company profile
FY 2010
11. Brands description
Extended stay – Residence Inn
Overview
Network
Extended stay, upscale brand
Network
►Mainly targeting business and leisure travelers
staying 5 or more days
► 613 hotels / 74,130 rooms in operation
= 121 rooms per hotel in average
Key figures
FY 2010
Geographical breakdown
► ADR: $112.1
► RevPar: $84.4
► Occupancy: 75.3%
► Only in North America: 595 properties in the US,
18 in Canada and Mexico
Mostly fitted out with
►Spacious accommodations
►Fully equipped kitchen, Free hot breakfast
►Swimming pool and Sport court
►Self-serve business center, Free in-room high
speed Internet and Wi-fi access in the lobby
►Evening social events
►Free grocery shopping services, Laundry facilities
►24-hour staff
Main competitors
►Suitehotel, Homewood Suites, Hawthorn Suites,
Baymont Inn & Suites, Summerfield Suites
34
Source: Company website & reports
Marriott – Company profile
FY 2010
11. Brands description
Extended stay – TownePlace Suites
Overview
Network
Extended stay, midscale brand
Network
►Mainly targeting business and leisure travelers
staying 5 or more days
► 184 hotels / 18,451 rooms in operation
= 100 rooms per hotel in average
Key figures
FY 2010
► ADR: 80.0$
► RevPar: 55$
► Occupancy: 68.7%
Geographical breakdown
► Only in the US (41 states)
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
35
Source: Company website & reports
Marriott – Company profile
FY 2010
11. Brands description
Timeshare
Overview
Overview
Timeshare, luxury brand
Timeshare, upper-upscale brand
Timeshare, upscale brand
►Functioning on basis of fractional
ownership. Club members have also
benefits at Ritz-Carlton H&R worldwide
► Functioning on basis of fractional
ownership.
►3 to 13 week ownership fractions
Network:
Network
►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
►14 properties / 729 units in operation
=52 units per property on average
► 4 properties / 316 units in operation
= 79 units per property on average
Locations
Locations
►In the world’s most picturesque cities and
in resort destinations
►Regional second home destinations
►From $100,000 to $600,000
Prices
►Membership: from $100,000 to $800,000
►3- to 5-weeks ownership fractions: from
$144,000 to 545,000
Source: Company website & reports
Network:
►53 properties / 11,918 units in operation
= 225 units per property on average
►More than 312,000 owners
Locations
Prices
36
Overview
►Resort destinations: US, Aruba, France,
Spain, St. Thomas, West Indies, Thailand
Prices
►Average weekly price of $26,500
Marriott – Company profile
FY 2010
12. Organisation COMEX
Name
Position
J. W Marriott, Jr
Arne Sorenson
Carl Berquist
Anthony Capuano
Simon Cooper
Edwin Fuller
Robert McCarthy
Amy McPherson
David Rodriguez
Edward Ryan
William Shaw
Stephan Weisz
37
Source: Company website
Chairman of the Board and Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
Global Development
The Ritz Carlton Hotel Company
Managing Director, International Lodging
The Americas and Global Lodging Services
Managing Director, European Division
Global Human Resources
General Counsel
Vice Chairman
Marriott Vacation Club
Marriott – Company profile
FY 2010