Introducing Marriott International’s brands
Marriott International (MAR) has 20 brands operating under its management, including luxury, lifestyle, and signature brands, which consist of full-service hotels, extended-stay lodgings, and modern essentials or select-service hotels. About 54% of the company’s total rooms operate under the select-service hotel segment, and the remaining under full-service hotels. Full-service hotels offer luxury accommodation along with on-site, full-service restaurants and a variety of on-site amenities, whereas select-service hotels offer accommodation with limited services and amenities.
Marriott’s full-service segment
Marriott’s full-service brands include Marriott Hotels, Marriott Conference Centers, JW Marriott, Renaissance Hotels, Renaissance ClubSport, Gaylord Hotels, Autograph Collection Hotels, the Ritz-Carlton, and EDITION.
Other brands including Marriott Conference Centers, Gaylord Hotels, and Renaissance Hotels focus mostly on business travelers, and still other brands such as Autograph Collection Hotels, Bulgari Hotels & Resorts, EDITION, and Residence Inn target both leisure and business travelers.
About 39% of Marriott’s total rooms in North America are full-service hotels, whereas full-service hotels make up more than 74% of the total international rooms run under Marriott’s brands.
Marriott’s select-service brands
Marriott’s select-service brands include Courtyard, Fairfield Inn & Suites, SpringHill Suites, AC Hotels by Marriott, and TownePlace Suites. These hotels mostly serve upper midscale and midscale segment customers.
Select-service hotels make up about 61% of Marriott’s total rooms in North America and about 26% internationally, but Marriott is focusing on increasing its select-service brands internationally.
Other brands operated by Marriott International
Gaylord is a convention-oriented hotel brand that was operating five hotels at the end of 2014. On average, each hotel consists of 1,500–3,000 rooms and offers about 500,000 square feet of convention area. Marriott has licensed its brands to the timeshare developing and marketing company Marriott Vacation Worldwide (VAC).
Investors can gain exposure to the lodging sector by investing in the iShares US Consumer Services ETF (IYC), which has about 11.5% of its total portfolio in the lodging sector, including 0.5% in Marriott (MAR), 0.4% in Starwood Hotels & Resorts Worldwide (HOT), 0.39% in Hilton Worldwide Holdings (HLT), and 0.06% in Choice Hotels International (CHH).
Continue to the next part for a closer look at Marriott International’s particular business model.