Marriott International, Inc. is a worldwide operator, franchisor, and licensor of hotel, residential, timeshare, and other lodging properties under more than 30 brand names at different price and service points.
Consistent with the company’s focus on management, franchising, and licensing, the company owns or leases very few of its lodging properties (less than one percent of the company’s system). The company’s system includes various in 144 countries and territories, and the company also has...
Marriott International, Inc. is a worldwide operator, franchisor, and licensor of hotel, residential, timeshare, and other lodging properties under more than 30 brand names at different price and service points.
Consistent with the company’s focus on management, franchising, and licensing, the company owns or leases very few of its lodging properties (less than one percent of the company’s system). The company’s system includes various in 144 countries and territories, and the company also has various hotels in its development pipeline.
The company discusses its operations in the following reportable business segments: (1) U.S. & Canada; (2) Europe, Middle East & Africa (‘EMEA’); (3) Greater China; and (4) Asia Pacific excluding China (‘APEC’).
Brand Portfolio
The company’s brand portfolio offers the most compelling range of brands and lodging offerings in hospitality. The company’s brands are categorized by style of offering - Classic and Distinctive. The company’s Classic brands offer time-honored hospitality for the modern traveler, and the company’s Distinctive brands offer memorable experiences with a unique perspective - each of which the company groups into four quality tiers: Luxury, Premium, Select, and Midscale. Luxury offers bespoke and superb amenities and services. Premium offers sophisticated and thoughtful amenities and services. Select offers smart and easy amenities and services. Midscale offers limited services and essential amenities at a more affordable price point. Longer stay brands, which are classified under multiple quality tiers, offer amenities that mirror the comforts of home. The following table shows the portfolio of brands owned, operated, and/or licensed by Marriott for properties open at year-end 2024. In 2025, the company expects properties to open under additional brand offerings, including the company’s StudioRes brand and its outdoor-focused lodging offerings.
Company-Operated Properties
The company has various company-operated properties, which include properties under long-term management agreements with hotel owners and properties that the company owns and leases.
The company provides centralized programs and services, such as the company’s Loyalty Program (as defined below), reservations, and marketing, as well as various accounting and data processing services, and hotel owners are required to reimburse the company for those costs as well.
Franchised, Licensed, and Other Properties
The company has franchise, license, and other arrangements that permit hotel owners and certain other third parties to use many of the company’s lodging brand names and systems.
Under the company’s hotel franchising arrangements, the company generally receives an initial application fee and continuing royalty fees, which typically range from four to seven percent of room revenues, plus for certain brands, up to four percent of food and beverage revenues, as well as reimbursement for centralized programs and services, such as the company’s Loyalty Program, reservations, and marketing. Such agreements are generally for periods of 10 to 20 years.
The company also has license and other agreements with third parties for certain offerings, such as for the company’s timeshare properties, MGM Collection with Marriott Bonvoy, Design Hotels, and The Ritz-Carlton Yacht Collection, pursuant to which the company receives royalty and certain other fees. For the company’s timeshare properties, the company receives royalty fees under license agreements with Marriott Vacations Worldwide Corporation and its affiliates (collectively, ‘MVW’) for certain brands. The royalty fees the company receives from MVW consist of a fixed annual fee, adjusted for inflation, plus certain variable fees based on sales volumes. Certain licensees are also charged for certain systems and centralized programs and services, such as the company’s Loyalty Program, reservations, and marketing.
The company has various franchised, licensed, and other properties.
Residential
The company uses or licenses certain of its trademarks for the sale of residential real estate, often in conjunction with hotel development. The company receives one-time branding fees upon the sale of each branded residential unit by the third-party developers who construct and sell the residences, with limited amounts, if any, of the company’s capital at risk. The company often also manages the related homeowners’ association and receive continuing management fees for that service. The company has various branded residential properties (various residential units).
Loyalty and Credit Card Programs
Marriott Bonvoy is central to the company’s business strategy. It encompasses the company’s portfolio of over 30 brands and other travel offerings, the company’s direct channels, and its travel loyalty program, which the company refers to as its ‘Loyalty Program.’ Loyalty Program members can earn points for stays at participating properties and other travel offerings, such as Homes & Villas by Marriott Bonvoy, a global offering focusing on the premium and luxury tiers of rental homes, as well as through purchases with co-branded credit cards and the company’s Loyalty Program partners. Members can redeem points for stays at participating properties, airline tickets, airline frequent flyer program miles, rental cars, products from Marriott Bonvoy Boutiques, and a variety of other awards, including experiences from Marriott Bonvoy Moments.
The company’s Loyalty Program generates substantial repeat business that might otherwise go to competing properties. In 2024, 72 percent of the company’s U.S. hotel room nights and 65 percent of the company’s global hotel room nights were booked by Loyalty Program members. The company strategically markets to this large and growing guest base to generate revenue.
The company has co-branded credit cards associated with Marriott Bonvoy in 11 countries. In the U.S., the company has multi-year agreements with JPMorgan Chase and American Express. The company also licenses credit card programs internationally, including in Japan, China, Canada, the United Arab Emirates, and other markets. The company generally earns fixed amounts that are payable at contract inception and variable amounts that are paid to the company monthly over the term of the agreements primarily based on card usage. The company’s co-branded credit cards create a diverse revenue stream for the company, reflect the quality and value of the company’s portfolio of brands, and contribute to the strength of the company’s Loyalty Program by creating value for its customers, hotel owners, and other parties with whom the company has an affiliation. Payments received under the company’s co-branded credit card agreements represent a significant funding source for the Loyalty Program.
Sales and Marketing and Reservation Systems
Marriott.com, the Marriott Bonvoy mobile app, and the company’s other direct digital channels offer seamless digital experiences. The company deliver customer-minded enhancements, including powerful in-stay capabilities through the company’s mobile app, such as contactless check-in and check-out, Mobile Key, chat, service requests, mobile dining, and more. In addition, the company is focused on strengthening Marriott Bonvoy by attracting more Loyalty Program members and localizing the company’s experiences to reach new customers around the world. The company’s focus on creating frictionless experiences throughout the company’s direct digital channels is foundational to the company’s worldwide technology systems transformation. This multi-year transformation of the company’s reservations, property management, and loyalty systems is focused on introducing new technology that delivers more choices for customers, new capabilities for associates, and new revenue opportunities for hotels in the company’s system.
The company’s above-property sales deployment and revenue management strategies are designed around the way the customer wants to buy and the strategic priorities of hotels in the company’s system. The company’s above-property sales strategy focuses on offering global business-to-business solutions, driving efficiencies, optimizing revenue, and enhancing customer loyalty while minimizing duplication of efforts at the hotel level. The company also utilize innovative and sophisticated revenue management systems, many of which are proprietary, which are designed to facilitate pricing decisions, increase efficiency, and optimize property-level revenue. Most of the hotels in the company’s portfolio utilize web-based programs to effectively manage the rate set-up and modification processes.
The company’s marketing strategies focus on building awareness, increasing demand, promoting Marriott Bonvoy, and increasing customer loyalty. The company does this through a variety of brand and marketing programs, offerings, and tools.
Competition
The company competes against many other companies with strong brands and guest appeal, including Hilton, IHG Hotels & Resorts, Hyatt, Wyndham Hotels & Resorts, Accor, Choice Hotels, Best Western Hotels & Resorts, and others. The company’s direct digital channels also compete for guests with online travel services platforms, such as Expedia.com, Priceline.com, Booking.com, Travelocity.com, Orbitz.com, and Trip.com, and search engines such as Google, Bing, Yahoo, and Baidu.
History
Marriott International, Inc. was founded in 1927.