Marriot vs Fairmont

Topics: Hotel chains, Marriott International, Hotel Pages: 24 (7701 words) Published: March 1, 2013
Introduction and Background2
Why These Two Companies?3
Environmental Analysis4
General Factors4
Specific Factors4
Environmental Uncertainty5
Shareholders/Stakeholders and their Interests5
Hotel Industry Changes in 3 to 5 years5
Organizational Culture6
How Is Company Culture Established?6
How is Culture Developed?6
How is Culture Maintained?7
Social Responsibility and Ethics8
Ecological Footprint8
Employee Treatment9
Financial Fit9
Planning and Strategic Analysis9
Current Strategies9
Companies’ Future10
Organizational Structure and Design10
Operation of Organization12
Who’s the Better Company?13

Introduction and Background
This report will discuss research and findings for Fairmont Hotels and Resorts (FHR) and Marriott International (MI). The focus will be on the similarities and differences in the managing styles within the companies, more specifically, focusing on environmental analysis; organizational culture; social responsibility and ethics; planning and strategic analysis; organizational structure and; and finally an overall organizational alignment of how all these factors plays into each company’s success. Industry

FHR and MI are leaders in the hospitality industry and have numerous hotels established world-wide. Both companies are traditional in theory, with a rich historical background that dates back to the early 1900’s. However, competition in the hospitality industry is fierce with companies constantly improving themselves to remain relevant. The table below displays FHR’s and MI’s main competitors. Fairmont Hotels and Resorts | Marriott International|

Starwood Hotels and Resorts| Hilton Worldwide|
Four Seasons | Accor Group|
Wyndham Worldwide| InterContinental Hotels Group|
(Hoovers, 2013).
In 1907, Tessie and Virginia Fair introduced San Francisco to the first Fairmont Hotel. Since then, FHR has seen growth and expansion throughout the United States. In 1999, FHR merged with Canadian Pacific Hotels, bringing the Fairmont brand to Canada. FHR became a privately owned company in April 2006, where it was purchased by Kingdom Hotels International and Colony Capital LLC. This joint venture brought together three leading hotel companies: Fairmont Hotels and Resorts, Raffles Hotels and Resorts, and Swissôtel Hotels and Resorts. The three individual brands operate under the parent company called Fairmont Raffles Hotels International (FRHI). In April 2010, Voyager Partners Ltd. bought into the joint venture with $847 million, becoming the largest shareholder in the group with a 40% stake in FRHI. Kingdom Hotel’s stake decreased to 35% from 58% and Colony Capital LLC holds 22% (Laessing, 2010). FHR’s current CEO is Mr. William R. Fatt, and its president is Ms. Jennifer Fox (Bloomberg Businessweek, 2012). These two leaders, along with their executive team (Appendix 1.1), manage over 25,554 full-time employees worldwide. FHR has over 70 properties in 19 countries and has 11 hotels currently in development. Fairmont recorded a J.D. Power score of 818/1000, placing them 5th in the Luxury Segment within North America (J.D. Power, 2012).

MI was established on May 20, 1927 by partners John Willard and Alice Sheets Marriott. MI later became a publicly traded company in 1953. The couple opened an A&W Root Beer stand in Washington D.C. that was only able to fit nine customers at a time. It evolved into The Hot Shoppe, becoming a chain of restaurants in the food service industry. The Twin Bridges Marriott Motor Hotel was the first ever Marriott hotel, opening in January 18, 1957. MI is a publicly traded hotel chain which has now become the world’s leading lodging company. MI’s success is represented by their vast brand portfolio. Predominantly made up of upscale brands...
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