Marriott International, Inc. (MAR) BCG Matrix Analysis

Marriott International, Inc. (MAR) is a leading global lodging company with a diverse portfolio of products and brands. In this blog, we will be discussing Marriott International's products and brands that fall under each category of Boston Consulting Group Matrix Analysis, including Stars, Cash Cows, Dogs, and Question Marks. Let's explore which products are generating significant revenue and which ones need improvement to maintain market share.

If you are interested in learning more about the hospitality industry and how Marriott International, Inc. is navigating through it, continue reading this blog to gain insights into their products and brands categorized in the BCG Matrix Analysis. We will be discussing each category in depth and giving you a closer look at the financial information, market share, and marketing support for each product. Whether you are an investor, a business student, or a hospitality enthusiast, this blog will provide valuable insights into the hospitality industry.

Background of Marriott International, Inc. (MAR)

Marriott International, Inc. (MAR) is a leading global lodging company formed in 1993 by Marriott Corporation. The company has a portfolio of 30 hotel brands across 131 countries and territories, consisting of more than 7,600 properties, representing over 1.4 million rooms. In 2022, Marriott International's revenue amounted to 13.1 billion U.S. dollars, with net income of 815 million U.S. dollars. The company has a market capitalization of around 56 billion U.S. dollars as of 2023. Additionally, Marriott International recently announced its commitment to becoming 'net-zero' by 2050, aiming to reduce the carbon footprint of its hotels and resorts by 50 percent by 2030. This initiative reflects the company's dedication to corporate responsibility and sustainability.

• Founded in 1993
• Portfolio of 30 hotel brands
• Presence in 131 countries and territories
• Over 7,600 properties
• Revenue of 13.1 billion U.S. dollars in 2022
• Net income of 815 million U.S. dollars in 2022
• Market capitalization of around 56 billion U.S. dollars as of 2023
• Committed to becoming 'net-zero' by 2050

Marriott International has received numerous awards and recognitions for its excellence in hospitality, including being named one of the 'World's Most Admired Companies' by Fortune Magazine and being recognized as one of the '100 Best Companies to Work For' by Fortune Magazine. The company is dedicated to providing exceptional customer service to its guests and continues to be a leader in the hospitality industry.

Stars	Question Marks
Westin Hotels & Resorts Market Leader in Luxury Hotel Segment Generated Over $3 Billion in Revenue in 2022 New 'Wellness Escapes' Program W Hotels Market Leader in Boutique Hotel Segment Generated Over $1.2 Billion in Revenue in 2021 New 'Off Duty' Fashion Collection Robust and Diverse Portfolio of 'Stars' Products/Brands	Marriott Vacation Club International (MVCI) Ritz-Carlton Reserve Sheraton
Cash Cow	Dogs
The Ritz-Carlton Courtyard by Marriott Marriott Rewards	SpringHill Suites by Marriott Delta Hotels Renaissance Hotels

Marriott International, Inc. (MAR) Stars

Marriott International, Inc. (MAR) has numerous 'Stars' products and/or brands as of 2023. One of the most prominent Stars is Westin Hotels & Resorts, which is part of the Marriott portfolio since 2016. Westin Hotels & Resorts have a high market share in the luxury hotel segment, making it a high growth product/brand, perfect for the Stars quadrant of BCG Matrix Analysis.

• Financial Information as of 2022: Westin Hotels & Resorts generated over $3 billion in revenue, a 24% increase compared to the previous year.
• Market Share: Westin Hotels & Resorts is the market leader in the luxury hotel segment with over 200 hotels in 40 countries.
• Marketing Support: In 2021, Westin Hotels & Resorts launched a new 'Wellness Escapes' program, which includes healthy living features such as sleep enhancing amenities, nutritious dining offerings, and fitness experiences.

Another 'Stars' product/brand from Marriott is the W Hotels chain. It offers a unique luxury lifestyle hotel experience that appeals to a younger, trendier market. With its emphasis on contemporary design, vibrant music, and signature 'Whatever/Whenever' service philosophy, W Hotels is a high growth product/brand that continues to attract a loyal following.

• Financial Information as of 2021: W Hotels generated over $1.2 billion in revenue, a 17% increase compared to the previous year.
• Market Share: W Hotels is the market leader in the boutique hotel segment, with over 50 hotels in 30 countries.
• Marketing Support: In 2021, W Hotels launched a new 'Off Duty' fashion collection in partnership with luxury clothing brand Splits59, aimed at defining a new era of hotel fashion.

Overall, Marriott International, Inc. (MAR) has a robust and diverse portfolio of 'Stars' products and/or brands, making it a leader in the hospitality industry. With the right investment and support, these Stars will continue to grow and generate revenue for the company.

Marriott International, Inc. (MAR) Cash Cows

Marriott International, Inc. is a leading global lodging company with more than 7,600 properties across 133 countries and territories. As of 2023, the company has several 'Cash Cows' products and/or brands that are generating significant cash flow and maintaining dominant market share positions.

• The Ritz-Carlton: The luxury hotel brand has been a consistent performer for Marriott International, with more than 100 hotels in 30 countries. As of 2022, the brand generated US$5 billion in revenue and maintained a high market share position in the luxury hotel segment. The Ritz-Carlton has been able to achieve high profit margins due to its loyal customer base and exceptional service offerings.
• Courtyard by Marriott: The mid-priced hotel brand has been successful in attracting business travelers and has grown to become Marriott International's second-largest brand in terms of number of hotels. As of 2022, Courtyard by Marriott generated US$4.2 billion in revenue and maintained a high market share position in the mid-priced hotel segment.
• Marriott Rewards: The loyalty program provides members with exclusive benefits and experiences across Marriott International's portfolio of hotels. As of 2022, Marriott Rewards had over 147 million members and generated US$2 billion in revenue. The program has been successful in driving customer retention and repeat business.

Overall, Marriott International's 'Cash Cows' products and/or brands have been able to maintain dominant market share positions and generate significant cash flow due to their established reputation, loyal customer base, and operational efficiency.

Marriott International, Inc. (MAR) Dogs

As of 2023, Marriott International, Inc. has identified several 'Dogs' products/brands within its portfolio of offerings. These products/brands are marked by their low growth rates and market share.

• SpringHill Suites by Marriott: Known for providing affordable accommodation to value-conscious travelers, this brand has struggled to keep up with changing customer preferences. With only 450 properties globally, it has struggled to achieve scale. In 2021, the brand recorded a revenue of $2.4 billion, a decline of 25% from the previous year.
• Delta Hotels: Acquired by Marriott International in 2016, this brand has been slow to grow and achieve market penetration. With only 94 properties across the globe, it is one of the smallest brands in Marriott's portfolio. In 2022, the brand recorded a revenue of $550 million, a marginal increase of 2% from the previous year.
• Renaissance Hotels: Known for offering unique design and guest experiences, this brand has struggled to differentiate itself from competitors. With only 170 properties globally, it has not achieved the scale required to generate meaningful revenue. In 2021, the brand recorded a revenue of $1.7 billion, a decline of 20% from the previous year.

As per the BCG Matrix Analysis, these brands are categorized as Dogs and should be minimized or divested. Expensive turn-around plans are unlikely to help in this scenario. Marriott International, Inc. should focus on investing in its high-growth brands to generate greater returns.

Marriott International, Inc. (MAR) Question Marks

As of 2023, Marriott International, Inc. (MAR) has several products and/or brands that fall under the Question Marks quadrant of Boston Consulting Group Matrix Analysis. These products have high growth prospects but with low market share. Below are some of Marriott International, Inc.'s Question Marks products/brands:

• Marriott Vacation Club International (MVCI): As of 2022, MVCI recorded revenues of $214.22 million, an increase of 2.8% from the previous year and an operating profit of $13.6 million, an increase of 188.3% from 2021. MVCI has a total of 70 resorts worldwide, and the company plans to expand geographically to capture the growing market share.
• Ritz-Carlton Reserve: Ritz-Carlton Reserve has six properties worldwide, with four properties in the pipeline. Although it has low market share, the brand is known for catering to high-end clients with its premium services and facilities. The brand has not yet been discovered by the mass market, but it has high potential for growth.
• Sheraton: As of 2021, Sheraton recorded revenues of $2.76 billion, and the brand has 440 hotels worldwide. Although the brand is recognized globally, it has not yet achieved significant market share. However, the brand has potential for growth by partnering with franchisees and expanding to new emerging markets.

Marriott International, Inc. can handle its Question Marks products/brands by investing heavily in them to gain market share or by selling them if they do not have potential for growth. Investing in these products would help the company to improve its market share and turn them into Stars in a high-growth market.

In conclusion, Marriott International, Inc. (MAR) has a diverse portfolio of products and/or brands that have been analyzed in this BCG Matrix Analysis. While some brands have proven to be 'Cash Cows' and generate steady cash flow for the company, others are 'Stars' that have high growth potential and market share. On the other hand, there are 'Dogs' that underperform and require divestment or minimization, while Question Marks have high growth prospects but low market share.

Westin Hotels & Resorts and W Hotels are examples of 'Stars' that are leaders in their respective market segments. They have consistently grown and attracted a loyal following with their unique offerings and marketing initiatives. Marriott Rewards is also a 'Cash Cow' that provides exclusive benefits to its members and drives customer retention.

SpringHill Suites by Marriott, Delta Hotels, and Renaissance Hotels are examples of 'Dogs' that require minimal investment and should be divested or minimized to focus on high-growth brands. Marriott International, Inc. should invest in brands like Marriott Vacation Club International (MVCI), Ritz-Carlton Reserve, and Sheraton, which have high growth potential but low market share, and turn them into Stars that generate significant revenue.

In the highly competitive hospitality industry, it is crucial for Marriott International, Inc. to analyze its portfolio of offerings periodically and make strategic decisions to improve its market position. With the right investment and support, Marriott International, Inc. can continue to be a leader in the hospitality industry and provide exceptional experiences to its customers.