Key Strategic Issues of Jw Marriott

Topics: Hotel, Hospitality industry, Hotels Pages: 2 (470 words) Published: April 2, 2013
Key Strategic Issue:

The JW Marriott stands as one of Marriott’s most luxurious and high-end class hotels for customers, but this does not mean that their need for expansion has been any less important. After the buy over of one of Manhattans most luxurious hotel brands, the Essex House Hotel, by Chicago-based real estate investment trust Strategic Hotels in the late months of the year 2012. The JW Marriott was asked to run the luxurious brand with a strategic partnership and take the Essex House image to a global level.

The Essex House Hotel was previous owned by the JW Marriott and was then sold to Japan Air Lines in the early 90’s. During the late 1990’s, the hotel industry was booming in North America and many firms wanted to sell their property shares in the hospitality industry for a big profit. Japan Air Lines on the other hand was facing difficult times, due to losses as much as $1.3 billion in air line costs and hospitality services. After many hands of switching from the Strategic Hotels group to the Dubai Investment Group in 2005 for $440 million, it was finally bought over once again by the Strategic Hotels Group for $362.3 million.

For the JW Marriott, this strategic alliance has allowed them to grow from a hotel business of 10 in the 1980’s, to a stunning 75 hotels world wide by 2015. Furthermore, of the 30+ hotels owned by the JW Marriott at the moment, less than 50% of these hotels own a market share in North America. Thus with this prestigious brand and the fast paced growing of international luxury hotel markets, the major issue arises of how will JW Marriott use this to their advantage and capture global luxury market sales and what strategy will they use for their luxury global expansion.

References: APA format
Benner, K. (n.d.). Where Marriott sees global luxury growth - Fortune Management. Fortune Management & Career Blog . Retrieved April 1, 2013, from
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