Marriott is one of the world’s biggest hotel chains, with over 7,000 properties globally. With so many locations, it’s natural to wonder how they are all owned and operated.
Are Marriott hotels franchised? This is a question that many people have, and in this article, we’ll answer it in detail.
If you’re short on time, here’s a quick answer to your question: Yes, Marriott hotels are franchised. However, the company also owns many of its properties, which can make it a bit confusing to understand.
In this article, we’ll break down exactly how Marriott’s ownership structure works and what it means for guests.
Marriott’s Ownership Structure
Marriott International is a leading hospitality company that operates and franchises hotels and lodging facilities worldwide.
The company was founded in 1927 by J. Willard Marriott and has since grown to become one of the largest hotel chains in the world, with over 7,000 properties across 131 countries.
What is Franchising?
Franchising is a business model in which a company (the franchisor) grants the right to use its brand, products, and services to another company (the franchisee) in exchange for a fee.
The franchisee operates under the franchisor’s established business system and guidelines while retaining some autonomy.
Marriott’s Franchise Model
Marriott offers a franchise model for hotel owners who want to operate under the Marriott brand. Under this model, Marriott provides the franchisee with support and resources, including access to the Marriott reservation system, marketing and advertising, and operational support.
Marriott has several franchise models, including the traditional model, which involves the franchisee owning and operating the hotel, and the managed model, where Marriott manages the hotel on behalf of the owner. Marriott also offers a lease model, where the franchisee leases the hotel from Marriott and operates it independently.
Marriott’s Company-Owned Properties
In addition to its franchise model, Marriott also owns and operates a significant number of properties worldwide. As of 2021, Marriott owns and operates over 30 hotel brands, including Marriott Hotels & Resorts, Sheraton, Westin, and Ritz-Carlton.
Marriott’s company-owned properties are managed by Marriott and operate under the company’s established guidelines and standards. These properties are not available for franchise opportunities.
Benefits of Franchising with Marriott
Franchising with Marriott offers several benefits to hotel owners, including access to Marriott’s established brand, marketing and advertising resources, and operational support. Marriott’s global network also provides franchisees with access to a larger customer base and increased revenue potential.
Franchisees also benefit from Marriott’s extensive training programs and ongoing support, which can help ensure the success of their hotel operations. Additionally, Marriott’s commitment to sustainability and social responsibility can help franchisees align their business with these important values.
How Marriott’s Franchise Model Works
Marriott International, Inc. is one of the largest hotel chains in the world, with more than 7,000 properties across 131 countries and territories. As part of its expansion strategy, Marriott uses a franchise model to operate many of its hotels.
Overview of Marriott’s Franchise Agreement
A franchise agreement is a contract between Marriott and a franchisee that allows the franchisee to use Marriott’s brand name, trademarks, and operating system. In exchange, the franchisee pays Marriott an initial fee, ongoing royalties, and other fees.
The franchisee is responsible for financing and building the hotel, while Marriott provides support in the form of training, marketing, and access to the company’s reservation system. Marriott also sets standards for the hotel’s design, amenities, and customer service.
Requirements for Franchisees
To become a Marriott franchisee, there are several requirements that must be met. First, the franchisee must have experience in the hospitality industry and a strong financial background. Marriott also looks for franchisees who share the company’s values and commitment to quality.
The franchisee must have adequate funds to cover the costs of building and operating the hotel, and must also meet Marriott’s standards for site location, design, and construction. Franchisees are also required to complete Marriott’s training program and comply with the company’s operating procedures.
Support Provided by Marriott
Marriott provides a range of support services to its franchisees, including training programs, marketing and advertising support, and access to the company’s reservation system. Franchisees also benefit from Marriott’s purchasing power, which allows them to buy supplies and equipment at lower prices.
Marriott also provides ongoing support to its franchisees, including regular visits from company representatives to help ensure that the hotel is operating according to the company’s standards. Franchisees can also access Marriott’s online resources and participate in industry events and conferences.
Marriott’s Company-Owned Properties
Marriott International is a global hospitality company that manages and franchises a broad portfolio of hotels and lodging facilities. The company operates both company-owned and franchised properties, with more than 7,000 properties across 131 countries and territories. In this guide, we will focus on Marriott’s company-owned properties.
Advantages and Disadvantages of Owning Properties
One of the main advantages of owning company-owned properties is that Marriott has complete control over the entire operation, from design and construction to daily management. This allows the company to maintain consistent quality standards and ensure that guests have a seamless experience regardless of the location they visit.
However, owning properties can also be a significant financial burden for the company. Construction and renovation costs, property taxes, and daily operational expenses can quickly add up and impact the company’s bottom line.
How Marriott Operates Company-Owned Properties
Marriott operates its company-owned properties through a decentralized management system. Each property has a general manager who oversees the day-to-day operations and reports to a regional vice president. The regional vice president is responsible for multiple properties within a specific geographic area and reports to a senior vice president.
The company also has a corporate team that provides support and guidance to the general managers and regional vice presidents. This team includes experts in various fields, such as finance, marketing, and operations.
Examples of Marriott’s Company-Owned Properties
Marriott’s company-owned properties include a diverse range of hotels and resorts, from luxury properties to budget-friendly options. Some of the most well-known company-owned brands include:
- JW Marriott: A luxury brand with over 100 properties worldwide, including the JW Marriott Marquis Hotel Dubai, the world’s tallest hotel.
- Marriott Hotels: A mid-range brand with over 500 properties worldwide, including the Marriott Marquis New York, the largest hotel in the city.
- Sheraton: A mid-range brand with over 400 properties worldwide, including the Sheraton Grand Chicago, one of the largest hotels in the city.
These properties are owned and operated by Marriott, which allows the company to maintain consistent quality standards and provide guests with a seamless experience regardless of the location they visit.
Benefits of Franchising with Marriott
Franchising with Marriott is a popular choice for many hotel owners looking to expand their business. Here are some of the key benefits of franchising with Marriott:
Brand Recognition and Loyalty
Marriott is a well-known and respected brand in the hospitality industry, with a strong reputation for quality and service.
By franchising with Marriott, hotel owners can leverage this brand recognition and benefit from increased customer loyalty. Marriott also has a large base of loyal rewards program members, which can help drive business to your hotel.
Marketing and Advertising Support
Franchisees with Marriott benefit from the company’s extensive marketing and advertising support. Marriott invests heavily in marketing and advertising campaigns, which can help drive business to your hotel.
Franchisees also have access to Marriott’s global sales organization and distribution channels, which can help increase bookings and revenue.
Training and Development
Marriott provides extensive training and development programs for franchisees and their employees. This includes both onsite and online training programs, as well as ongoing support and coaching.
Franchisees also have access to Marriott’s best practices and operational expertise, which can help improve the performance of their hotel.
Access to Technology and Systems
Franchisees with Marriott benefit from access to the company’s technology and systems, including reservation and booking systems, revenue management tools, and customer relationship management software.
This can help streamline operations and improve efficiency, while also providing valuable data and insights to help optimize performance.
Conclusion
In conclusion, Marriott hotels are indeed franchised, but the company also owns many of its properties.
This hybrid model allows Marriott to maintain control over its brand and standards while also allowing for growth and expansion through franchising.
For potential franchisees, partnering with Marriott can provide numerous benefits, including access to a well-established brand, marketing and advertising support, and training and development opportunities.
