Reflections on the Economy and Marriott's Prospects for 2009
Hi, I'm Arne Sorenson, Marriott's chief financial officer, guest-blogging for Bill Marriott, who wanted me to share with you our reflections on the economy and Marriott's prospects. With the slowdown, our stock value has eroded meaningfully in the past year. Just because we have plenty of company doesn't make the decline any easier. Before things get better, we're going to have to navigate through a tough 2009. We said last October that we expected revenue per available room or RevPAR, one of the industry's key performance measures, to be down at least three percent in North America next year. Just about a month ago, Bill Marriott reported that our business outlook had further weakened. Industry-wide data has also been showing continuing RevPAR declines.
Despite this, and even though the U.S. has been in a recession since December 2007, we have much to be thankful for. First and foremost, we have a terrific management team, beginning with Bill Marriott, who has been through significant downturns before and has noted that each time we've come back stronger. We also have a great brand lineup which helps deliver strong returns for our hotel owners and franchisees.
Our business strategy of managing and franchising hotels protects us in slowdowns and primes us for better days. Marriott is a remarkably resilient cash flow generator, even when business slows. Our balance sheet is in good shape and we have access to cash through our revolving line of credit, which has over a billion dollars remaining available. Because of our excellent financial shape, the revolver, as it is called, is free of many of the complex restrictions companies can often experience. In fact, with our solid cash flow and more modest investment spending in 2009, we expect our debt levels will decline next year.
We're laying tomorrow's foundation with a deep, record pipeline of new managed and franchised hotels - about 130,000 rooms in our pipeline at the end of the third quarter. One half of these are already under construction and another ten percent, or so, are financed. We're confident about our planned hotel openings to our system in 2009 and through most of 2010. What's more, in downturns hotel owners tend to want to convert hotels to global brands. During the slowdown earlier this decade, from 2001 to 2003, over 20,000 hotel rooms joined our system from competitor brands.
Today, we're increasingly nimble in responding to demand trends. This includes our timeshare business, which we believe will weather the downturn just fine. Our timeshare business depends on consumers and while consumers are more cautious today, they haven't stopped in their tracks. As always, we're calibrating our timeshare investments to match customer demand, with a goal of timeshare generating cash in 2009, even in a difficult economy. We continue to offer financing for qualified purchasers and expect to be able to securitize these loans in 2009.
As we close out 2008 with the near-term business outlook remaining uncertain, we are confident in both our industry and in our company over the long term. Our wonderful people, working in great places around the world, will continue with a sense of purpose, to build economic prosperity in the communities we call home.
Happy New Year, and thanks for helping us keep Marriott on the Move.
Note: The foregoing contains "forward-looking statements" within the meaning of federal securities laws, including statements concerning the number of lodging properties we expect to add in the future; anticipated future debt levels; cash expected to be generated by our timeshare business; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including the depth and duration of the current slowdown in the lodging industry and the economy generally; supply and demand changes for hotel rooms, vacation ownership, condominiums, and corporate housing; competitive conditions in the lodging industry; relationships with clients and property owners; the availability of capital to finance hotel growth and refurbishment; and other risk factors identified in our most recent quarterly report on Form 10-Q; any of which could cause actual results to differ materially from those expressed in or implied by the statements herein. These statements are made as of December 9, 2008, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. |
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Posted By: Jeremy Hanlon (12/29/2008)
Comment: To Dawn Brinningstaull:
Could they be any clearer that there will be a $250 charge for smoking in your room. If you are a loyal customer you would see that $250 charge several times even before you get to your room. It plastered all over the folio as well.
Posted By: Bill Rosenburger (12/23/2008)
Comment: With the downturn in the economy many companies are cutting back on their travel budgets, including my own. When this has happened in the past, it was difficult to achieve the highest levels in frequent guest programs, what another hotel brand I used to stay at did in the past when the economy was in recession was grant extra credit toward qualification for one of the top tiers in the current year toward elite qualification in the next year. This would be greatly appreciated by your best customers who may not be able to achieve the top levels easily due to travel restrictions in 2009. Thanks for the wonderful travel experiences this year.
Posted By: Patrick A Lynch Sr (12/18/2008)
Comment: More people are buying RV's and I would like to see Marriott maybe look into adding camp grounds at some resort locations, or plan some in the future.
This is a very do able venture for Marriotts portfolio. Even with gas prices as they were RV's still rolled.
Posted By: Jim Langill (12/18/2008)
Comment: I am a loyal Marriott client. I have been Gold or Platinum for the last three or four years. With the tough economic times, I am not travelling as much as in the past few years. However, I do want to maintain my loyaly to Marriott. During the economic downturn, would you consider lowering Gold and Platinum levels to maybe 40 and 65 stays? Would be a benefit to maintain loyalty.
Posted By: Dawn Brinningstaull (12/18/2008)
Comment: I'll always been a loyal Marriott customer and booked multiple rooms for large family gatherings. This last November, I was surprised by a charge to my credit card for $250! The rooms were $99 a night, we had two rooms for two nights. It appears that a friend staying in the other room smoked inside. I can understand the need to penalize customers for smoking in a non-smoking room; but $250!! It was more than I paid for the two nights lodging. I'm sorry, but it is unreasonable. I'll have to reconsider where I will lodge for New years Eve celebrations.
Posted By: John M. Ring (12/18/2008)
Comment: Arne, I have to say you guys are missing the boat by cutting out amenties in the rooms. As a platinum member who exclusively stays at Marriott properties I am confused why your properties are eliminating lotion in the rooms. I understand the slowdown in the economy, however, I truly believe there are other ways to save some money for the rooms to keep flat or increase your RevPar. In business, the little thinhs often add up to being quite important. My last two stays, marriott Oak Brook, IL and Marriott CY, Independence, OH have eliminated some of the amenties in the room. Why not eliminate one of the notepads and pens or eliminate the conditioner. I recently stayed at the Hyatt in DT Atlanta and not only did they have all amenties in the room, they also provided a trial size toothpaste and shaving kit in their room. I believe that most business travelers going through airports and renting cars appreciate the little things. In a bad economy, like now, people are more willing to switch when the competition continues to offer the same or more for the money. I would be careful in eliminating some of these low cost items.
Posted By: Kenny Mathew (12/16/2008)
Comment: I would like to express my gratitude to everyone in Marriott hotel for hard work.
For development of my relationship marriott hotel.
I am about to develop new stragegy prominent project with marriott.
Posted By: emine mutaf (12/16/2008)
Comment: You're right about the tough economic times and I would very much appreciate if I could get any type of discount on my reservation Confirmation Number: ********
Residence Inn New York Manhattan/Times Square... It's a fortune....I've never been to NYC and wanted to treat myself for a well-deserved 45th birthday gift but it's too pricy...
Thanks,
Emine Mutaf
Posted By: J Mattax (12/15/2008)
Comment: Mr. Marriott, in these hard times have you considered lowering the cost of your rooms? Typically your costs are in line with other hotels, but for the presidential inauguration you all have chosen to inflate your prices. Granted I had the option of not booking the room, but I feared that the room would no longer be available. Now I find that Hilton has the same room for $300 cheaper (total price), but I'm obligated to keep the room or lose my money. Can someone show a bit of compassion and help me out?
Posted By: Cynthia T (12/15/2008)
Comment: Love your nonsmoking policy and the fact you have clean/recently-renovated rooms. My work has been sporatic and my travel has decreased in the last few months. As an independant contractor, I "fight" to stay in Marriott hotels, as your rates are in line with the other chains. I hope to increase my work and will stay loyal to you. Also love being able to trade points for merchandise.
Posted By: J. Griffiths (12/14/2008)
Comment: In this serious downturn we are in; what if Marriot offered a free room with internet to displaced customers or the public. Maybe 1 per hotel for 30 days.
Posted By: Pat Talanian (12/14/2008)
Comment: Was going to book a trip to Aruba and stay at the Marriott again in March or April of 2009. The room rates were $500 a night!!!!!!!!
No thank you...we booked a trip to Las Vegas with our friends at a fraction of the cost.
Posted By: Diane Strock-Lynskey (12/14/2008)
Comment: Hello!
Before I state my concern, I would
like to first state that, overall, I find Marriott and the rewards program to be a great asset. On a professional level, I use Marriott whenever possible and on a personal level my family like to the do the same. Next, comes my concern. I was very excited to receive via hard copy mail a flyer from Marriott indicating a special promotion of 25% off room rates for this upcoming winter/beginning this month, December, and going through the early spring. Because my daughter is graduating from her undergraduate program in Philadelphia in two weeks and we will have to have two rooms for two nights in order to accommodate our immediate family as well as her grandmother and aunt, I was very excited about being able to take advantage of this offer. This is especially true since due to very tight finances, this celebration must take place less than a week before Christmas and so take most of our resources to be there, leaving us with a very sparce holiday. However, after placing my call to the Marriott Rewards Program, I was very disappointed to learn that this discount did not extend to the rooms that include 2 bedrooms but only applies to the studio units, even though there is nothing in the flyer that indicates that there is this restriction.
To be honest, I feel that this is unfair, especially since it was not noted right up front that these units will not receive this discount and also places larger families like ours with five family members at a disadvantage. In addition to this, we are booking two two bedroom units for two nights each and will have to pay for two cars for two nights each. This a far amount of business to be giving the Marriott during these economic times and I feel that this should be recognized and that this 25% discount rate should be applied for both units for both nights or we should at least receive free parking to offset the fact that we are not getting any type of discount on these units even though it has been stated that this promotion is otherwise is in effect.
I also tried to remedy this situation by being willing to use my Marriott rewards points for these two units but was told again that I could use these points for the studio units but not for the two bedroom units. I cannot do this for a # of reasons including the fact that we need to be able to offer privacy to family members who are joining us for our daughter's graduation such as my mother-in law who is in her 70's and therefore need the separate sleeping areas.
I would welcome hearing from you about this matter because it will affect my willingness to make reservations with Marriott in the future because I feel that I can obtain the accommodations
I need for my family at a lower price with another hotel and with more flexibility/willingness to respond to
my needs financially and more willingness to negotiate - re: offer me something please for the business I am giving you which is greater than most customers right now!!
Sincerely, Diane Strock-Lynskey
Posted By: Boulter (12/14/2008)
Comment: I have a suggestion. I would like to be able to reserve a specific room we enjoy to be located in. Every year we return to our home location, and sit on the edge of our seats as to where we will be placed. I believe if we are home owners, we should have first choice as to our room locations, the folks that trade to our location should be the ones that shouldn't have an input as to where they stay. Also, I would like to see that we be aloud to bring our small dog- 15 pounds and under. We would gladly pay an additional fee if necessary and then have a portion returned upon our check-out. We cannot have children, so our dog is part of our family, and I don't think that I am alone in this request. Please consider my inputs and provide back to me your answer. We pay hefty annual fees, and I believe we should be comfortable when we arrive.
Thank you,
Mr. Boulter
Posted By: Thomas Rice (12/14/2008)
Comment: can you guys look at extending or cutting back the requirements for elite status...i am coming up short this year and won't be able to keep my gold status because of the cut backs in the economy...it would make sense to do this as to not lose customers to other chains of hotels because they lose their status with Marriott....great chain of hotels but don't make us lose our benefits because of the economy...thanks!
Posted By: Mitchell L. (12/13/2008)
Comment: Dear Mr. Marriott,
I have stopped considering Marriott Hotels as an option for my travels. I cannot support a company whose leaders are tied to a religious faith that practices discrimination against anyone, but especially against me and so many of the important people in my life. The Mormon church's massive support of Proposition 8 in my state of California and in battles against homosexuals in other states pains me greatly, especially considering how much acceptance they have asked of Americans over the years. Even though I understand that you did not directly contribute to the effort in out state, you do perform an obligation to tithe to your church and that money goes into the funds that were used against my community.
If I hear that Marriott Hotels includes the protection of homosexuals in its policies and that the leadership of the company renounces the behaviors of the Mormon church, then I will certainly reconsider this boycott. Until then, though I will miss the very nice accommodations of your company's properties, goodbye.
Former Marriott Rewards Member Mitchell Lord
Posted By: Ron Hagmeyer (12/13/2008)
Comment: I was also very disappointed,as a Marriott Vacation Club new owner (one year) of the discontinuance of semi-annual points with an outstanding mortgage on the timeshare, especially with the extremely high interest rate on the mortgage. The points made it more palatable. If the point program must be discontinued (hopefully only for a short period of time) I would think that the owners could at least have automatic silver elite status each year that we owned our property. As many have said, we are loyal to Marriott and have demonstrated that over many years as the accumulation of our points would testify.
Posted By: Steve Matthews (12/12/2008)
Comment: In your Iowa city Mariott when the college game crowd is not in town your hotel becomes empty. I prefer to stay at your hotel during these times and am silver Marriott. However, I get discounts from the Sheraton which are less than 50% what your lowest rate is. I cannot pass that up not that I do not want to because I prefer to stay with you guys but your people will not negotiate with me. I am willing to pay more than the Sheraton offers me at these times but not that much of a difference. If I had someone at your hotel to work with that would help me. It looks like I most likely will not continue to stay at your hotel now.
Posted By: Mary McCauley (12/12/2008)
Comment: I have a suggestion for how to cut costs for travelers while generating new business for Marriot. I find myself the sad owner of many frequent flyer miles, some earned through Marriot stays. I can not use these miles due to new fees from the airlines, reduced number of seats available, and many other aggrevations from airlines. I have stopped leisure travel. WHAT IF... Marriot offered a 10-15% discount on room rates by using frequent flyer miles through an agreement with the airlines (who don't really want us to use those miles for air travel!) I would happily fly again knowing I could save on hotel rates with my miles rather than go through the frustration of trying to redeem them with the airlines. I get to use what are effectively dead miles, you get more bookings and the airlines get the miles off their books.
Posted By: Jason Hampton (12/12/2008)
Comment: Marriot treats you better that's the bottom line. I lived in a Marriot nine months on business last year my experience was great a two different locations in Indianapolis. Oh and love those rewards! Go Bears!
Posted By: Dan Doyle (12/12/2008)
Comment: Dr. Mssr. Marriot & Sorenson,
Just got the link to the blog and plan on following along.
Marriot hotels are without a doubt the best value for the dollar spent, and it's always a pleasure to stay with you. I stay at the Fairfield in Hazelton, PA at least 3 times a year and am always treated wonderfully.
Unfortunatly with the downturn in the economy, as an independent businessman, I have to keep my actual dollars spent as low as possible, forcing me to stay in hotels that certainly don't meet your standards, but I will stay when I can.
It would be great to see a premium hotel chain come up with a program that could make it affordable for independent businessmen to stay on a regular basis.
Take care and good luck,
Dan Doyle
Posted By: Sharon Lennox (12/12/2008)
Comment: I just wanted to let you know the Court Yard by Cleveland Ohio airport was just wonderful. My husband is in a wheelchair and your staff was very helpful especially at breakfast. I would also like to make a suggestion why not make all of your rooms handicap accessible. With all of us baby boomers getting older you are going to need more of them. The bathrooms seem to be the difference. Why not get ahold of Craig Hospital in Colorado for some design ideas. They specialize in spinal cord injuries.
Posted By: Marvin "Mickey" Christensen (12/12/2008)
Comment: In these times of economic downturn, would it make sense to "pay attention to details" by giving customers a small break to encourage staying at Marriotts?
My suggestion would be to offer HS internet access and local phone calls as part of the room fee. Many hotels offer free access to the internet and some are backing off of charging for local calls. Example: Recently I stayed at a hotel in Chicago (not a Marriott) and it was $12.95 per day to use the internet. Companies pay for my stay, but the more I can save them, the more they are willing to have me come work at their site.
Many are cutting back on travel and using webinars, internet, and teleconferences. If you can get their costs down a bit, they may give in a bit more to travel.
Food for thought.
Posted By: Joe Rossi (12/12/2008)
Comment: Great blog post, Mr. Sorenson - thanks for sharing your insights and vision with us. With this severe economic downturn affecting business travel, Marriott might consider extending our current 2008 Elite status through 2009 for it's most loyal customers. This would certainly sustain Eite customer loyalty and market share in an increasingly competitive pricing and service environment. Marriott has ALWAYS been known for it's forward-thinking management - this action would go a long way towards solidifying that position. I look forward to staying with Marriott through the tough times.
Posted By: Jeff Northrup (12/12/2008)
Comment: I agree with several of the bloggers... why not include a more realistic view of the year, when existing loan holders were deprived of points for carrying their loans (and although the devil was in the printed details), this was certainly not mentioned in our sales meeting. I am very unhappy that Marriott chose to do this, and then Arne and Bill's lie by ommission in their rosy outlook devotion to customer assistance. If the outlook is so good, why cut back on benefits to your loyal investors???
Posted By: JChilds (12/12/2008)
Comment: We have always been very loyal to Marriott and own several timeshares. The maintenance fees are getting to be too much to handle. We're thinking of selling our deeds. I hope that something can be done to cap these soon before people are completely pulling out of Marriott.
Posted By: Doug Ackerman (12/12/2008)
Comment: With the economic slow-down and the cut-back on traveling for 2009, would Marriott consider carrying members' stays in excess of 75 into 2009 to help with the 2009 Marriott Rewards requirements? Hopefully 2010 will be a better year for travel.
Thanks for operating a great hotel chain!
Posted By: Bill Fitzpatrick (12/12/2008)
Comment: I have stayed at more Marriott's than I can count over the years and probably accumulated well over 1,000,000 points (all used up by now) since I joined the HG program.
When I traveled for business I was always able to get the military rate at most hotels, but now since I am semi retired (fully retired military), I can no longer qualify for that rate. Consequently, I now go to other hotels that do extend the military rate to me.
It would seem to me that if you opened the miltary rate to military retirees as well as active duty personnel and government contractors, you might fill many more rooms with people like me who now go to other hotels. Personally, I would much rather stay at a Marriott, but the economics just don't work.
Just my humble opinion.
Posted By: John A (12/12/2008)
Comment: I agree strongly with Kim Brandley on her comment about Marriott dropping the bonus points for timeshare owners who finance through Marriott. I too am a newer owner and love the property in Hawaii and plan to go often, but I am quite disappointed that you have discontinued the bonus points plan. The salesman referred to this "perk" as one that would continue to reward us as we could use those points for other Marriott stays. Guess I'll be moving my loan to another source with lower rates now.
Posted By: Mary Marks (12/12/2008)
Comment: I've stayed at Marriott's across the country and have not been disappointed. I also helps that my son is employed at Barony Beach Resort on Hilton Head Island. ;-D
Posted By: Jeff Jacobs (12/12/2008)
Comment: A thought considering the economy and discount hotel websites: If Marriot is choosing to be part of the discount hotel website (Priceline, Expidia, etc.) process, why not extend the same first rate serivce to those customers as you do to the business traveler or the full price guest? Allow room requests or withdraw from the discount network!!
Posted By: Jeff Allen (12/12/2008)
Comment: I agree with two previous posts about the ending of reward points for Marriott Vacation Club Owner bi-annual loan incentive. We recently bought into Marriott's Lakeshore Reserve at Grande Lakes Orlando. This is our second pre-construction Marriott proprty purchase(Aruba Surf Club). I consider it a great insult to punish those who show the greatest amount of faith in your company by investing 10's of thousands of dollars on properties not yet built. We are the last people Marriott should look to take benefits away from since we have the most invested in the company. We have shown our good faith in Marriott, please return the favor and restore the loan incentive Reward Points.
Posted By: Sherry Mc (12/12/2008)
Comment: I have maintained my Platinum status for many years, but this year due to our corporate policy in reducing our expenses, I may not earn it. We have been asked to stay in properties for net $150 including all taxes. With the dollar amount, I am excluded from staying at my regular courtyards in MD, VA, KY, TN, IN. I hope you will perhaps make some consession for your loyal customers, who want to stay loyal.
Posted By: Adrian (12/12/2008)
Comment: I just switched from Hilton as a Gold member back to Marriott. I realized that you have more opportunities to use fewer of my points for personal travel and in this economy, that's what breeds loyalty. I'm doing all my business travel with you now. Sometimes it takes a little time for the prodigal son to figure it out, but I'm glad things haven't changed too much ;)
Posted By: Thomas Hill (12/12/2008)
Comment: What is the value of Marriott Rewards, if the blackout dates really penalize using them around peak dates?
Posted By: Karl (12/12/2008)
Comment: As a Federal Employee appreciate the direct access to your hotels that accept the government per-diem rate. Now they only need to recognize our new GSA (SmartPay 2) travel credit cards that have the federal tax exemption numbers on them.
Posted By: john sokul (12/12/2008)
Comment: I just received an e-mail from the Marriots thanking me for my continued busines and loyalty to the marriott family. I purchased two Marriott timeshares this summer under a payment loan program that promised accumulating points over the term of the loan provided loan was paid with marriott Credit card at speificed interest rate (10%). The sales presentation emphasized the benefits of these points. Well, Marriott notified me a couple of weeks ago that the promised points had been revoked. Loyalty is a one way street for the Marriott family.
Posted By: Bruce Fink (12/12/2008)
Comment: I am a Marriott Vacation Club owner. I purchased a second week in August of 2008 expecting to earn 25,000 points every six months with the Marriott loan program. When the plan was removed a few weeks ago I was extreamly upset. I feel that I was mislead by Marriott. One of the reasons I own only Marriott time shares is I trust. With the removal of the program Marriott removed a good deal of my trust.
Posted By: Patrick Williams (12/12/2008)
Comment: Mr Marriott...i have been a fan for years. Always stay in Marriotts and have two timeshares.
I live in Palm coast Florida and our town needs Marriott to take over a project that CENTEX walked away from called Palm Coast Resort. they destroyed the old Sheraton and then left the project. it is right on the InterCoastal Waterway and a tennis club and spa is partially complete next door..Would you check it out...please call or write and i wlll be glad to tell you more..I am an executive coach and have no vested interest in the real estate!
dr. Patrick Williams
Posted By: Jeff Johnson--Barky (12/12/2008)
Comment: Arne/Bill--I love the Marriott corp and try to use some of your principles at my dental office. Arne, Greetings from Bend, OR and hi to Nathan and Susan.
Posted By: Andy (12/12/2008)
Comment: So I read several things from your blog post:
1. You are expanding the Marriott brand with more rooms and hotels...some under construction and some only financed.
2. You are towing the company line. I'm sure your boss appreciates the praise, this is his blog, after all. As CFO, I expect nothing less.
Which leads me to the following questions:
1. As a business traveler who stays in a number of hotel family's during the year (usually 250-300 nights per year)...what is your strategy to keep your average room cost down despite this aggressive expansion plan?
2. The plan is to capitalize on the failing global market and buy up competition like family run businesses and small boutique hotels.
Which leads me to another question: How do you compete with brands like Hilton, Hyatt and Starwood (all of whom I stay with regularly, along with Marriott) regarding quality, pricing and availibility even in this troubled market while you are actively expanding? Shouldn't the focus be on rewarding returning customers even more to ensure market reliability and solid corporate rates?
I appreciate your attention and hope you address these questions, as I'm sure many of your other customers would be interested to hear your response.
Thanks,
Andy
Posted By: Gail Nickowitz (12/11/2008)
Comment: Marriott is a terrific operation, and We use hotels often when visiting our family, but you are just too expensive in this economy - - and, we have to add on parking fees!
Posted By: Michele Abrams (12/11/2008)
Comment: I frequently stay at Marriott and Courtyard by Marriott when traveling; I always have a positive experience. I enjoyed your podcast, it's great that you offer the public a platform of connectivity and expression.
Kind regards,
Michele Abrams
CEO, Chief Eternal Optimist
InspireNotes TM
www.InspireNotes.com
Posted By: Ruth Angel (12/11/2008)
Comment: I love staying at Marriott Hotels, I would love to be able to make a reservation through the hotel as a member and know that I am getting the lowest price. In this downtown turn why not offer your members the lowest price? I would rather call and make a reservation and be confident the price is the lowest. You can still sell blocks to these other vendors charge your members a lower price.
Posted By: Dwightm Jasmann (12/11/2008)
Comment: I was frankly stunned to see the increase in points required for Marriott stays for 2009! I had no knowledge of this change or would have used my points in 2008. To increase the points by a factor of 300% doesn't look to be prudent, in my opinion, especially in an economy that needs changes in the other direction. Timing is horrible and,of course,will undoubtedly influence travelers plans in choosing Marriott in the future-certainly will mine? I use Marriott principally for the fact your hotels are great and the choices good. However, secondarily I stay with you a great deal so that I can accumulate points to be used for a nice get away sometime in the future. You've just cut that use sharply-all in one year! The motivation for using my Marriott Rewards Visa has now also changed. Other options look better! Regretfully, Dwight Jasmann
P.S. I was living and working in Hong Kong in 1990 when you opened the JW Marriott. Was looking forward to spending a nice time there again with my points(several hundred thousand) but now that has changed!
Posted By: Thuy Ai Nguyen (12/11/2008)
Comment: I love Marriott. It seems to get better all the time. My next stay will be Marriott Surf Club in Aruba. Can't wait to see it again.
Posted By: Paulette Garrett (12/11/2008)
Comment: Thank you for sending a positive note. I am so tired of all of the bad news on a minute-to-minute basis that it is refreshing to hear something nice. I have always loved Marriott and when I get a chance to leave town again, I'll stay at a Marriott. I would love to find a way to bring the people together to turn our economy around in each of our local communities.
Posted By: Kim Brandley (12/11/2008)
Comment: I am a Marriott Vacation Club owner who owns 3 weeks of timeshare. For my recent purchase in May 20008 I took out the Marriott loan since part of the loan program was that for every six months you had a loan, you received Marriott points. I was just notified that this points practice is stopping as of 12/31/08. I think that is terrible for existing loan holders who took these loans because of receiving these points. So much for the incentives and encouraging the economy.
Posted By: E. Long (12/11/2008)
Comment: I have always loved the Marriott hotels and I used to stay at them quite often. I have had to start staying at other hotels because the prices have gotten too high for me. Of course, I realize that Marriott is one of the best hotel chains and are consistantly high quality hotels. I wish I could afford to stay there but it just is not possible any longer. I agree with Ron riggi that it would be helpful to lower prices so more people could take advantage of your wonderful hotels.
They have the best frequent visitor program in my opinion also.
Good luck to all of you at Marriott in these tough economic times.
Posted By: Irish (12/11/2008)
Comment: FAMILY! That is what Marriott is all about. Because our family is sooo spread out, across the US, holidays are always a matter of much juggling. When we head to Orlando we always stay on the club floor at the Ritz Carlton. The staff and the manager there are fantastic. A part of the family. Our relatives who live within 3 hours drive come there and celebrate with us. Otheres fly in. What could be better. Orlando Grande Lakes on the Club Floor is our home away from home.
Posted By: Wayne V (12/11/2008)
Comment: Mr. Marriot, Mr. Sorenson, keep up the great work. My experiences in your Hotels remains practically flawless. Stand Tall and Plow Deep, we will all make it through tough times. You remain there for me, and I will for you.
Posted By: Kurt A. Wanner, QSSP (12/11/2008)
Comment: Just spent the night at Cleveland Airport Marriott and waned to let you know what a great job the staff did with the remodeling of the concierge floor at this hotel. Both the lounge and rooms are terrific. The only negative was teh heat differential between area around the desk and the area near the door - had to be 5 degrees cooler by the desk.
Posted By: Ed Flanagan (12/11/2008)
Comment: My wife and I have always stayed at a Marriotts since we got married for all of travels. We've always enjoyed staying at the 2 bedroom suite in Charleston, WV Residence Inn with our mother to visit her sister there in town. They remember us and treat us very well. We are currently going to Florida for the 2008 Christmas Holiday to visit with family and friends. The Courtyard Marriott in Brandon was the only hotel we could find that has an indoor pool to accomodate our children. Once again, Marriott delivers our accomodations. Unfortunately, the manager there is unable to accomodate us with the cost of breakfast since we're staying there for an entire 2 weeks! It's a bit costly; but will improvise. But we go there for our children to enjoy the pool during our stay at this location while visiting friends nearby. Thanks for all you do.
Posted By: John M. (12/11/2008)
Comment: I too am disappointed to hear about the rewards program changes. Doesn't make sense to punish your loyal customers, does it? I'm also really tired of 10-15 TV channels. In today's technology age it would be very easy to put the entire cable menu out to every room. Please consider the loyal road warrior.
Posted By: Ron Riggi (12/11/2008)
Comment: We always stay at Marriott whenever we can. Might I suggest that in such a sluggish economy you consider being the first chain to lower your prices worldwide? You might be pleasantly surprised at how many Americans would enjoy the stay if they thought they could afford it during a recession.
Posted By: D Robertson (12/11/2008)
Comment: I've just returned from Myrtle Beach where, due to traveling with friends, we did not stay at a Marriott. However, our experience was so unacceptable - up to and including the sarcastic front desk manager - that I actually thanked her for reminding me why I'm a loyal Marriott client. You folks clearly understand service, service and service is what is important, and the lack of your standards is painfully clear elsewhere. Best of luck and continued success!
Posted By: Michael Dean (12/11/2008)
Comment: A few years ago I stayed at one of your hotels near Washington on a family trip. While getting coffee one morning I met a gentleman who had worked for Marriott starting in the40's and eventually retired. He told many stories of how much he enjoyed working for the company and how much he enjoyed working with and respected your father. Thanks for all the effort you put into making the Marriott a great place to stay.
Posted By: Kellie Steger (12/10/2008)
Comment: Hello!
I had the honnor of staying at the Fairfax, Virginia last evening. This morning while meeting with clients, we had the privilidge of seeing M. Marriott tour one of his hotels. The staff was in awe of seeing him and meeting the man that was a part of such an incredible hotel and place to work. It is always such a pleasure to stay at this hotel. the service is impecable, the rooms are very clean and the atmosphere for the holiday's was very inviting. Thank you Mr. Marriott for making my day in northern Virginia!
Posted By: Chicke Fitzgerald (12/10/2008)
Comment: I am glad to hear a positive outlook as well. I do have to ask though why no one in our industry ever focuses on the fact that the primary focus is on marketing to the air traveler, a population that by virtue of the double digit cutbacks in air capacity and frequency, is shrinking. This limits growth in and of itself. Not to mention that air travelers make up just 15% of all trip in the US and 22% of spending.
The drive market represents 85% of all trips and 78% of all spending (for overnight trips). You can't market to a drive traveler with a booking engine that starts with asking "where do you want to go". Driving is about the journey, not just the destination and requires different tools to manage multi-day travel to different destinations along the way. I believe that Marriott could greatly expand sales in both the traditional hotel side of the business and in timeshare (which is predominantly a drive market) side.
Posted By: Jayson (12/10/2008)
Comment: It's good to hear a company with such a positive outlook for the future; it sounds like Marriott will come out of the recession stronger than the company was before the recession. I have not heard many companies talk about expanding in '09 and believe that any company with the ability to expand in this troubled economy shows great financial strength and better management.
Posted By: E. Cushman (12/10/2008)
Comment: I love Marriott, and stay in your hotels when possible, however, I am disappointed that in January you will be increasing the amount of Marriott points necessary to achieve the rewards that I so enjoy. Marriott has always treated me right, so this will not change my feelings for Marriott, but it will mean that I will not be able to stay as often as I like using reward points. No matter if I am using points or am paying for the room with my beloved Marriott Visa, I am helping to fill your hotel rooms, and spending additional money in your restaurants, spas, gift shops, etc. In this economy, I think changing your rewards point system was not a good move.
Posted By: Dave Witmer (12/10/2008)
Comment: I congratulate Mr. Marriott, Mr. Sorenson and their team in both providing a clear assessment of the current state of the corporation, and for continuing to provide an excellent product at a reasonable price. Keep up the great work!
Posted By: Joyce (12/10/2008)
Comment: I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Joyce
http://www.shunmigraine.com
Posted By: robert sterman (12/9/2008)
Comment: In view of the poor economy why does Marriott increase the number of points needed for redemption effective 1/15/09. It would seem logical to fill vacant rooms with bodies who spend dollars on food & other items at Marriott hotels & vacation clubs. It seems to me that you are increasing the price of your timeshares by increasing your redemption poiunts for useage.
Posted By: Hank Mancini (12/9/2008)
Comment: I have a great deal of confidence in Marriott's management and direction. While just about everyone would like to see the economy boom forever, that is just not possible. There will be ups which will be followed by down times. We experienced a thrilling ride up the economic roller coaster and now we must continue the ride down. The ride is not over, we'll be heading up again. It looks like Marriott can weather the downturn and will once again prosper when the economy turns around.

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