American multinational, Marriott International with headquarters in Maryland was started by JW Marriott led by his son Bill Marriott as the Executive Chairman and Arne Sorenson as the President and CEO.
It has more than 6,500 properties with 1.2 million rooms in 127 countries followed by 195000 inventory in development pipeline.
Talking of another flagship brand in the hotel world, Starwood with headquarters in Stamford is now a subsidiary brand of Marriott. On November 16, 2015 the current parent company announced the purchase for $13.6 Billion. This deal was further finalised on September 23, 2016.
The challenges are increasing and technology is changing the way we live and travel. Times like these call for leadership and vision. This further led Marriott to be the LARGEST HOTEL COMPANY in the world of hotels.
We all witnessed this change, but very few took it as a management learning than just gong through the news. Entrepreneurs might find this interesting. There are 2 major take aways for these avant- grade :
- MARKET SPIN
After every merger, people in the market and near make their own assumptions and critical analysis. Just the way we participate in political discussions. But, despite of all the announcements sounding like marketing spin, Marriott stood as the largest hotel company in the world and this news is accurate.
- EXPANDING GLOBALY IS EASY
Companies always merge when they are serving the same product or service to different market in different sectors. And usually financially dominating company will always get the benefits and acquire the rest. Similar is the case study of Marriott and Starwood. After this merger Marriott being the player of the current hotel world has to play its game, which any company does upon getting the benefits. This also gave the benefit to outweigh working with a strong competitor and further use resources to expand.
Marriott and Starwood had also merged together their reward programs giving benefits to guests of combining both along with Ritz- Carlton. Both the companies now respecting each others culture is in a successful relation, not only making business to customer but business to individual services. They are the best and flag ship brands of the hotel industry leading to the merger of their best qualities and business management practices as well.
***THE LUXURY PINEAPPLE***
SIGNATURE OF HOSPITALITY
To the industry that never sleeps !!!
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