Marriott International Future Opportunities

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MARRIOTT INTERNATIONAL FUTURE OPPORTUNITIES

Marriott International Future Opportunities

Marriott International Future Opportunities

Introduction

Marriott worldwide Inc. (Marriott or “the company”) is a international hospitality company that functions and franchises hotels and lodging amenities. The business mainly functions in Americas, Europe, Africa, and Asia-Pacific. It is headquartered in Bethesda, Maryland and employs about 137,000 people. The business noted revenues of $10,908 million throughout the economic year completed December 2009 (FY2009), a decrease of 15.3% over 2008. The down turn in income was primarily attributed to feeble financial situation in the United States, Europe and much of the rest of the world, which affected the lodging demand all through the world in 2009. The operating decrease of the business was $152 million in FY2009, as contrasted to the functioning earnings $765 million in FY2008. The snare loss was $353 million in FY2009, as contrasted to a snare earnings of $347 million in FY2008 (Tepeci, 1999).

Challenges

The tourism industry is influenced by risks from terrorist attacks after September 11, 2001. Marriott, a emblem of American luxury and power, has been a major target of terrorist attacks. The business has suffered numerous blasting device blasts in the latest past. The 2002 car bombing at Karachi out-of-doors Marriott inn and 2003 attack on Marriott inn, Jakarta, Indonesia killed numerous persons while several were hurt. The Marriott was afresh aimed at in 2004 and then in 2008 in Islamabad, Pakistan initating many killings. The aftermath of these terrorist attacks have weakened the consumer self-assurance in the security arrangements round Marriott and has instilled concerns and worry in the minds of certain worldwide customers. These incidents could outcome in lower check-ins at Marriott inns which will sway the company's business and reputation in the long run (Helm, 2003).

The timeshare business segment of the company is still opposite the heat of worried economic and credit markets.The company, under this segment, markets and deals residential properties; investments consumer buys; and functions holiday resorts. The business provides financing to the purchasers of its timeshare and fractional properties by securitizing the loans occassionally in the securities markets. although, the turbulence in the economic markets in the second half of 2008 and entire of 2009 in the US weakened the timing and capacity of the timeshare loans, as well as the economic periods of such sales. worsening market situation resulted in the delay of a designed fourth quarter 2008 sale of borrowings to ...
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