Forbes Article About Marriott’s Transformation

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There is an interesting article this week on Forbes print edition (you can access it online here) about Marriott hotels and people behind it. I think that you should read it if you are interested in about hotels in general.

forbes-marriott-article

The articles and the video touches the fact that the company only owns or holds the title for mere 5 of the 3800 or so hotels under the Marriott family of hotels. All the others are owned REIT’s (Real Estate Investment Trusts) and that 43% of Marriott’s hotel rooms are managed by Marriott and 54% are franchised.

Marriott typically charges a fee of 3% of the revenue and 25% of the profits and requires owners to commit contracts lasting sometimes as long as 50 years. The owners of these properties typically don’t mind this, as Marriott tend to be able to get higher REVAP (revenue per available room) compared to competitors.

forbes-marriott-return-on-employees

Also the article discusses the transformation of the Marriott’s 18 hotel brands more Generation X, Y, and Millennial business travelers in mind. Currently their hotels are done more to the baby boomers.

Conclusion

Marriott really has a task upon them trying to woo the younger business and leisure travelers to their brands, as they are often not the most “fresh” to put it kindly.

There was a CNBC piece about Marriott earlier this year that is an interesting thing to watch, if you have time to spare. You can read more about it here.

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