Marriot and Hilton the World

Marriot and Hilton

The world of hospitality and leisure has become an area that has been increasingly brought to forefront. Part of the reason for this, is because of the larger number of competitors that are reaching out to the unique demographics of travelers. Two companies that are at the forefront of the industry are: the Marriot and Hilton hotels. Where, both are competing for the same demographics of business. As a result, this has caused each company to develop its own unique brand and products. To fully understand the role that each company plays within the industry requires: examining the various products / services, when the company was established and what account firm it uses for its audited financial statements. Together, these different elements will provide the greatest insights, as to the overall role that both companies play within the hospitality industry.

What is the product or service of each company?

Marriot is owned by the parent company Host Marriot. They specialize in offering: franchise hotels and corporate housing properties. They provide these different services through one of the many brands that they own such as: JW Marriot, Marriot and Renaissance Hotels just to name a few. ("Marriot International," 2010) Hilton follows a similar strategy, by specializing in offering leisure and casual travelers, a unique experience at any one of the different hotels or brands that they offer. To include: the Waldorf Astoria, Embassy Suites, Doubletree and the Hampton Inn just to name a few. This is significant, because it shows the role that both companies are playing in the hospitality industry, as their different brands are designed to provide specific segments (the high to middle end travel segment) with a variety of services / amenities that they demand. ("About U.S.," 2010)

When was the company established?

Host Marriot International was established in 1971 and is headquartered out of Bethesda, Maryland. While Hilton Hotels was: established in 1919, by Conrad Hilton in Cisco, Texas. This information is important, because the age of both hotel chains, shows how the industry evolved. With Hilton making a major impact early during the 20th century, then as the industry evolved more players would continue to emerge, as Host Marriot was established during the 1970's. Together, these two hotels would highlight a shift that was occurring, as an increasing number of people began to travel more, for a variety of reasons.

What accounting firm audited its financial statements?

Both companies are currently using KPMG to audit their financial statements. ("Sonic, Hilton Hotels and Sbarro ax Anderson Firm," 2002) This is important, because it shows how both organizations are trying to provide as much transparency as possible, by having an accounting firm that can respond to their needs. In many ways, the selection of them as their auditor is a testament to this commitment. Evidence of this can be seen back in 2002, when Host Marriot hired KPMG as their auditor. At the time they were using Arthur Anderson. Given the transparency issues of the accounting firm, meant that the company would have to find one that could provide increased transparency. This is significant, because the selection of KPMG shows the commitment of both companies to transparency. ("Host Marriot Annual Report," 2004)