Marriott International, Inc: Company Strategy & Performance Analysis
The company has three business segments: North American full-service, North American limited-service, and international. The North American service segments include properties located in the US and Canada and operates brands such as Marriott Hotels, JW Marriott, Renaissance Hotels, Courtyard, Residence Inn, and Fairfield Inn, among others, whilst the international segment consists of The Ritz-Carlton, Bulgari Hotels & Resorts, Renaissance Hotels and Marriott Hotels, among others.
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JW Marriot and The Ritz-Carlton brands contributed significantly to RevPAR, occupancy and ADR
The comparable company operated North American properties segment posted better ADR (US$194.6), RevPAR (US$147.5) and occupancy rates (75.8%) compared to other segments in 2016. In this segment, The Ritz-Carlton posted the highest revenues per available room (RevPAR) and average daily rate (ADR) with US$252.4 and US$350.9 in 2016, respectively. W Hotels posted the highest occupancy rates of 81.7% in the same year.
Increased hotel rooms and loyalty program members
In 2016, Marriott’s number of rooms increased at a rate of 5.4%, from 1,129,297 in 2015 to 1,190,604 in 2016. The number of hotels also increased, with a rate of 10.1% from 5,521 in 2015 to 6,080 in 2016. This rise was primarily due to the 2016 acquisition of Starwood, which increased the company’s properties and hotel rooms by 1,320 and 373,758, respectively. Marriott’s loyalty members also increased from 54 million in 2015 to 100 million in 2016.
Marriott introduces M Beta, a hotel-based innovation lab
In October 2016, Marriott opened M Beta, an innovation lab that will function as the world's first hotel in live beta”. This will transform the traditional hotel experience by offering digital keyless entry upon arrival.