Marriott International, Inc. (MAR): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Marriott International, Inc. (MAR) became a global hospitality giant? With a staggering 8,764 properties and over 1.6 million rooms worldwide as of fiscal year 2024, Marriott's journey from a small root beer stand to a leading name in hotels is truly remarkable. Intrigued to discover the secrets behind its success, who owns this empire, and how it continues to innovate in the ever-evolving hospitality industry? Keep reading to uncover the fascinating story of Marriott International.

Marriott International, Inc. (MAR) History

Marriott International, Inc. Founding Timeline

Year established

Marriott International was founded in 1927.

Original location

The company's origins trace back to a root beer stand in Washington, D.C.

Founding team members

The founders were J. Willard Marriott and Alice Sheets Marriott.

Initial capital/funding

The Marriotts invested their savings of approximately $6,000 into opening their first root beer stand, which later evolved into the Hot Shoppes Restaurant chain.

Marriott International, Inc. Evolution Milestones

Marriott International, Inc. Transformative Moments

• Diversification into Hotels: The decision to enter the hotel industry in 1957 with the Twin Bridges Motor Hotel was a pivotal moment. It signified a major shift from food services to lodging, setting the stage for becoming a global hospitality leader.
• Strategic Brand Development: Marriott's focus on creating a diverse portfolio of hotel brands, each targeting different market segments, allowed it to capture a broad customer base and increase its market share.
• Global Expansion: The company's aggressive international expansion strategy in the late 20th century established its presence in key markets worldwide, enhancing brand recognition and driving revenue growth.
• Acquisition of Starwood Hotels & Resorts: The 2016 acquisition of Starwood Hotels & Resorts was a transformative event, creating the world's largest hotel company with an unparalleled portfolio of brands and a significantly expanded global footprint.
• Focus on Technology and Innovation: Marriott's ongoing investments in technology and innovation, such as mobile check-in, personalized services, and loyalty programs, have enhanced the guest experience and driven customer loyalty.

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Marriott International, Inc. (MAR) Ownership Structure

Marriott International, Inc. operates with a mixed ownership structure, featuring a significant portion of shares held by institutional investors, alongside individual shareholders and company insiders.

Marriott International, Inc.'s Current Status

As a publicly traded company, Marriott International is listed on the NASDAQ under the ticker symbol MAR. This means that ownership is distributed among public shareholders, who can buy and sell shares of the company on the open market. For insights into Marriott's financial performance, see: Breaking Down Marriott International, Inc. (MAR) Financial Health: Key Insights for Investors

Marriott International, Inc.'s Ownership Breakdown

The ownership of Marriott International is distributed among various types of shareholders, including institutional investors, individual shareholders, and insiders. The following table summarizes the ownership breakdown:

Marriott International, Inc.'s Leadership

The leadership team at Marriott International is responsible for setting the strategic direction and overseeing the company's operations. Key members of the leadership team include:

• Anthony G. Capuano: Chief Executive Officer
• Leeny Oberg: Chief Financial Officer and Executive Vice President
• Stephanie Linnartz: President

Marriott International, Inc. (MAR) Mission and Values

Marriott International's mission and values reflect its commitment to providing exceptional experiences, fostering a culture of excellence, and creating value for its stakeholders.

Marriott International's Core Purpose

Official mission statement

Marriott International's mission statement is: 'To be the world’s favorite travel company.'

• Focuses on customer preference and satisfaction on a global scale.
• Aims to lead the hospitality industry by exceeding customer expectations.

Vision statement

Marriott International's vision statement is to 'fill the earth with the light and warmth of hospitality.'

• Reflects a broad ambition to have a positive impact worldwide through its hospitality services.
• Emphasizes creating welcoming and comfortable environments for guests.

Company slogan/tagline

Marriott International does not have a single, universally used slogan. However, individual brands under Marriott often use taglines to promote their specific offerings.

Here are examples of taglines from Marriott brands:

• JW Marriott: 'Feel connected, present, and revitalized.'
• The Ritz-Carlton: 'Ladies and Gentlemen Serving Ladies and Gentlemen.'
• Courtyard by Marriott: 'Make Room for a Little Fun.'

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Marriott International, Inc. (MAR) How It Works

Marriott International operates primarily by franchising and managing hotels and resorts, offering a wide range of lodging options and services to travelers globally. Mission Statement, Vision, & Core Values of Marriott International, Inc. (MAR).

Marriott International's Product/Service Portfolio

Marriott International's Operational Framework

Marriott's operational framework is built around a few core strategies:

• Franchising and Management Agreements: Marriott expands its brand presence by franchising its brands to hotel owners and managing properties on their behalf. This reduces capital investment and allows for rapid global growth.
• Brand Portfolio: With a wide array of brands, Marriott caters to different market segments, from luxury to budget-conscious travelers.
• Marriott Bonvoy Loyalty Program: This program enhances customer loyalty by rewarding frequent guests with points, exclusive benefits, and personalized experiences. As of 2024, Marriott Bonvoy had over 186 million members.
• Technology and Innovation: Marriott invests in technology to improve guest experiences, streamline operations, and drive revenue. This includes mobile check-in, digital room keys, and personalized offers.
• Global Distribution System: Marriott uses its extensive network and partnerships with online travel agencies (OTAs) to maximize occupancy rates and revenue.

Marriott International's Strategic Advantages

• Global Brand Recognition: Marriott's brands are well-known and respected worldwide, providing a competitive advantage in attracting guests and securing franchise agreements.
• Extensive Network: With over 8,800 properties in more than 139 countries and territories as of 2024, Marriott has a broad geographic reach.
• Loyalty Program: Marriott Bonvoy drives repeat business and enhances customer lifetime value.
• Scale and Efficiency: Marriott's size allows it to achieve economies of scale in procurement, marketing, and technology investments.
• Adaptive Business Model: The mix of franchising and management agreements provides flexibility and resilience in varying economic conditions.

Marriott International, Inc. (MAR) How It Makes Money

Marriott International, Inc. primarily generates revenue through hotel franchising and management agreements, as well as from its owned, leased, and other lodging operations.

Marriott International, Inc.'s Revenue Breakdown

Marriott International, Inc.'s Business Economics

• Franchising Model: Marriott generates revenue by franchising its brands to hotel owners. Franchisees pay initial fees and ongoing royalties, typically a percentage of room revenue. This model allows Marriott to expand its brand presence with limited capital investment.
• Management Agreements: Marriott also manages hotels on behalf of property owners. In exchange for managing the hotel's operations, sales, and marketing, Marriott receives management fees. These fees are often a combination of base fees (a percentage of revenue) and incentive fees (based on the hotel's profitability).
• Owned, Leased, and Other Lodging: A smaller portion of Marriott's revenue comes from hotels that it owns or leases directly. These properties contribute to revenue through room sales, food and beverage, and other guest services.
• Pricing Strategy: Marriott employs dynamic pricing strategies, adjusting room rates based on demand, seasonality, and competitor pricing. The company also leverages its loyalty program, Marriott Bonvoy, to drive direct bookings and customer retention.
• Economic Fundamentals: Marriott's revenue is closely tied to macroeconomic conditions, including travel demand, consumer spending, and business investment. Economic downturns can negatively impact travel and lodging demand, while periods of economic growth tend to boost revenue.

Marriott International, Inc.'s Financial Performance

• In the fiscal year 2024, Marriott International reported a total revenue of approximately $23.7 billion.
• The company's net income for 2024 was around $2.4 billion, demonstrating a healthy profit margin.
• Marriott's earnings per share (EPS) for 2024 stood at $7.37, reflecting solid profitability on a per-share basis.
• As of the end of 2024, Marriott's system-wide occupancy rate was approximately 74%, indicating strong demand across its portfolio of hotels.
• Marriott Bonvoy, the company's loyalty program, had over 196 million members globally, driving customer loyalty and repeat business.

To gain more insights into Marriott's core values and strategic vision, explore: Mission Statement, Vision, & Core Values of Marriott International, Inc. (MAR).

Marriott International, Inc. (MAR) Market Position & Future Outlook

Marriott International is a dominant player in the global lodging industry, boasting a wide portfolio of brands and a significant international presence. The company's future outlook appears positive, driven by strategic expansions, innovative service offerings, and a strong loyalty program. Mission Statement, Vision, & Core Values of Marriott International, Inc. (MAR).

Competitive Landscape

Opportunities & Challenges

Industry Position

Marriott International holds a leading position in the global lodging industry, characterized by:

• Brand Recognition: A portfolio of well-known and respected brands that cater to a wide range of travelers.
• Global Footprint: A vast network of hotels and resorts in numerous countries, providing a competitive advantage in capturing international travel demand.
• Loyalty Program: A strong loyalty program (Marriott Bonvoy) that encourages repeat business and enhances customer retention.
• Innovation: Continuous investment in technology and service offerings to improve the guest experience and stay ahead of industry trends.