Marriott is now the world's largest hotel group by rooms, following completion in Sept 2016 of its acquisition of smaller rival Starwood Hotels & Resorts for $13.6bn. (It was forced to raise its original price after an alternative offer was issued for Starwood by a Chinese bidder). Marriott already managed a broad selection of accommodation brands from luxury Ritz-Carlton, Bulgari and Autograph Collection through upscale Renaissance and Marriott to midscale SpringHill Suites and economy Fairfield Inns. There are numerous other smaller brand families including luxury chain Edition and budget Moxy in Europe, a partnership with Ikea. Starwood lifted the portfolio to 30 separate brands with the addition of W, Sheraton, Westin and Meridien. The combined estate houses almost 1.2m rooms - it is the first group ever to top 1m rooms - spread between 5,950 properties in 122 countries, a wider footprint than any rival. More than half of those hotels were franchised, with the group providing branding and central booking services; most of the rest are privately owned but run by Marriott under management contract. Marriott group revenues were $17.07bn in 2016. Although it has properties in almost 80 countries, only around a third of the group's rooms are located outside the US. Arne Sorenson is CEO, and JW "Bill" Marriott Jr is executive chairman. His father J Willard Marriott founded the business in the 1920s as the Hot Shoppes restaurant chain. Other restaurants were added and the first Marriott hotel opened in 1957 with Bill Marriott as manager. As CEO from 1972 he expanded the business by opening or acquiring subsidiary brands. The restaurant operations were spun off in 1993 and are now HMSHost. A separate real estate business, Host Hotels, run by Bill Marriott's brother Richard Marriott, owns a collection of luxury hotels around the world which are managed or franchised by Marriott or other operators. Adbrands does not currently profile this company but subscribers may access account assignments and contact information. The searchable account assignments database is available to full subscribers to Adbrands.net premium services. Click here to access Adbrands account assignments (subscribers only); or see here for information on how to subscribe.
Capsule checked 4th April 2016
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Adbrands Weekly Update 13th Apr 2017: Ads of the Week: "Go Beyond". Venables Bell & Partners launched two major new campaigns this week. One is for Chipotle Mexican Grill - we weren't especially impressed; have a look at it on our Facebook page - but the other is much more interesting. This sweet spot launches a mammoth global campaign for Sheraton Hotels, now part of the vast Marriott portfolio. It celebrates staff members who "go beyond" the call of duty to provide excellent service. The commercials are accompanied by a wide-reaching print campaign showing other employees in similar situations. It's a refreshingly imaginative concept for a sector that often settles for bland brochure-ware ads depicting lavish bedrooms, smiley receptionists and expensive food.
Adbrands Weekly Update 29th Sep 2016: Marriott International completed its takeover of smaller rival Starwood, adding the Sheraton, W, Meridien and other brands to its existing estate which stretches from Bulgari and Ritz-Carlton to Fairfield Inns and Moxy. The enlarged group topples Hilton to become the global leader in hospitality with more than 1.1m rooms spread between 5,700 properties around the globe. There are now 30 separate brands within the portfolio, raising expectations that some rival chains may be merged.
Adbrands Weekly Update 31st Mar 2016: Anbang Insurance returned fire in the battle for Starwood Hotels & Resorts, regaining pole position over rival bidder Marriott International with a new all-cash offer worth $14bn. Mariott's most recent offer, issued last week, came in at $13.6bn in cash and shares. Analysts suspected that Marriott was preparing to throw in the towel... only to be taken almost completely by surprise when it was Anbang which suddenly withdrew its offer on Thursday afternoon. In a short statement it said "Due to various market considerations, the consortium has determined not to proceed further." Commentators suggested that the group may have been struggling to raise the necessary funding to back its offer. Starwood reiterated its support for its previously agreed combination with Marriott.
Adbrands Weekly Update 24th Mar 2016: The bidding war for high-end hotel operator Starwood moved into high gear, as challenger Anbang Insurance and original suitor Marriott International both sweetened their offers. On Friday last week, Starwood told Marriott it was planning to accept a $13.2bn offer from the Chinese consortium; by Monday, it had recommitted to a better offer from Marriott worth $13.6bn, including a higher proportion of cash.
Adbrands Weekly Update 17th Mar 2016: A Chinese investor group led by Anbang Insurance is attempting to gatecrash the planned acquisition by Marriott International of Starwood Hotels & Resorts, offering around $13bn for the smaller company. That's around $2bn higher than Marriott's cash and stock bid is currently worth. Anbang already owns the historic Waldorf Astoria hotel in New York and recently agreed to acquire a group of 16 luxury hotel properties in the US operating under the Four Seasons, Ritz-Carlton, InterContinental and other banners.
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