marriott vs hilton.docx - Marriott International 1 School...

Marriott International 1
School of Business
ROE DuPont Assignment
An Individual Analysis Submitted in Partial Fulfillment of the Requirements for the MBA
Degree
Course: Strategic Financial Planning
Submitted To: Prof. Timothy Howes
Submitted By:
Parth Patel

Marriott International 2
Marriott International
Marriott International, Inc. is a leading global lodging company with more than 6,000
properties in 122 countries and territories, reporting revenues of more than $17 billion in fiscal
year 2017. Founded by J. Willard and Alice Marriott and guided by family leadership for nearly
90 years, the company is headquartered outside of Washington, D.C. in Bethesda, Maryland.
The company has grown to one of the biggest hospitality company in the world and the
leader in the country with the industry having three big players in United States. Marriott
International, Intercontinental Hotel Group, Hilton Worldwide. In this project we look at Marriott
International and its major competitor Hilton Worldwide.
Marriott is the parent brand to 19 different brand-named hotels. Each hotel is marketed to
cater different niche audiences. Marriott has skillfully created unique brand names that fulfill the
wants and needs for mostly all customers whether the customer is a budget shopper, family
vacationer, or elite businessman.

Marriott International 3
Du Pont Identity
The DuPont identity tells us that ROE is affected by three things:
1. Operating efficiency, which is measured by profit margin;
2. Asset use efficiency, which is measured by total asset turnover;
3. Financial leverage, which is measured by the equity multiplier.
If the ROE is unsatisfactory, the DuPont identity helps analysts and management locate the part
of the business that is underperforming.