Skift Research Take
Two years have passed since Marriott’s acquisition of Starwood, but the integration efforts continue on. The success of the Sheraton brand turnaround and the merging of the loyalty programs is critically important and could mean millions of incremental fee revenue for the combined company.
In September 2016, Marriott International acquired Starwood Hotels and Resorts for more than $13 billion, propelling itself into the spotlight as one of the largest, most dominant players in the global hospitality industry with 1.3 million rooms across 30 different brands and over $5 billion in annual revenues (excluding cost reimbursements).
In this report, we focus on two aspects of the monumental task of integrating two gigantic hotel companies — the Sheraton turnaround and the merging of the loyalty programs — and what they could mean for the combined company. The success of both could mean millions of incremental fee revenue for Marriott. However, the actions Marriott is taking also demonstrate its dedication to reducing costs for hotel owners while improving the overall experience for hotel guests, thereby demonstrating why it is such a formidable, dominant hospitality company.
What You'll Learn From This Report
- An overview of Marriott by the numbers: Sales, earnings, supply, and pipeline
- A comparison of Marriott before and after the Starwood acquisition: Past, present, and future
- Three hypothetical analyses assessing the potential financial benefit of the Sheraton turnaround
- Consumer and hotel owner views on the merging of Marriott’s loyalty programs
- Analysis of potential incremental revenue from improving the loyalty program’s contribution to occupancy for legacy-Starwood brands
- A description of other areas of strength for the company
- Skift Research forecasts for Marriott’s 2018 RevPAR, revenue, and earnings
- Company risks
- David Flueck, Senior Vice President, Global Loyalty, Marriott International
- Julius Robinson, Senior Vice President and Global Brand Leader, Classic Full Service Brands, Marriott International