Benchmark Hotel Project

Marriott International, Inc.

Patricia Carbajal

Kasey Dunbar

Nancy Palacios

Elena Ross

ACC-206 Hospitality Accounting

Professor George Williams

5/6/2012

Marriott International, Inc. is at the top of the lodging industry. The company is one of the world's leading hoteliers with 3,700 operated or franchised properties in more than 70 countries. Its hotels include full-service brands and the Marriott family owns about 30% of Marriott International. The top two competitors are Starwood Hotels & Resorts Worldwide, Inc. and Hyatt Hotels Corporation.

Starwood Hotels & Resorts Worldwide, Inc. is in the luxury and upscale categories, where the prices are high and the services extensive. They appeal to the most fashionable clientele because the company cultivates celebrities and holds events to attract them. By revenue, Starwood is in the middle, and has the lowest ratio which generates 1/3 of sales from food and beverages. Additionally, the return on equity and return on assets is in the bottom half of the competitor; leaving Marriott to produce 50% more revenue than Starwood.

Hyatt Hotels Corporation is a top operator of luxury hotels and resorts that managed, franchised, and owned properties in 45 countries. Its brand offers hospitality services targeted primarily to business travelers and upscale vacationers. The company generates only 33% of the revenues in comparison to Marriott International, Inc. In addition, 60% of the revenues are from hotel operations or leased properties.

Benchmark Company

Marriott International, INC

Founded by J. Willard Marriott and now led by Arne Sorenson, Chief Executive Officer. Marriott is an American hospitality company that manages and franchises lodging operations around the world. As of the year 2012 Marriott International has more than 3,800 properties in over 75 countries and continues to grow.

Revenue Recognition:

1) Base and Incentive Management Fees

* Management fees are composed...