To analyse financial position and performance between Hilton Hotel and Marriot Hotel

Accounting & Finance

Acknowledgement
I would like to express my special thanks of gratitude to my teacher “ “for their able
guidance and support in completing my Dissertation.
I would also like to extend my gratitude to the Dean Ma’am/Sir “ ” for providing me with all
the facility that was required.
DATE:

SUMMARY
Financial analysis includes utilising financial data in order to assess the performance of
organisation as well as make recommendations regarding the way it can enhance going forward.
Analysing financial position and performance of company on continuous basis is very necessary
today in order to grow and sustain in market for long term. Hilton Hotel is one of the leading full
service hotel and resort and is a global brand which around 584 hotel and resort properties in 94
Nations and territories across six continents. On the other hand, Marriott International, Inc. is a
pioneer in the global real estate industry. With over 3,000 properties in 68 countries and
countless performance donations, they are renowned and renowned as a brand. The global
liquidity and housing crisis has hit the pub and housing sector hard due to the sharp decline in
business and leisure travel. Despite the volatile decline in productivity over consecutive years,
Marriott plans to launch two new brands in 2010, a dual presence in Europe by 2015, and be able
to generate incremental revenues while reducing building-level costs. The attached report
addresses these critical trends. It also deals with the openings that Marriott and Hilton needs to
make extra profits based on their characteristics by expanding their expansion plans in the mid-
range pub share to take advantage of the busiest development speed and using minimal effort,
high improvements to enable stay rates deteriorate and make a constant assessment of economic
conditions as the world gradually emerges from this financial recession. The findings show that
Hotel has maintained its financial position, but it still requires to work on its current ration; as
liabilities are more compared to current assets.

Contents
Acknowledgement...........................................................................................................................2
SUMMARY.....................................................................................................................................3
Contents...........................................................................................................................................4
Title: “To analyse financial position and performance between Hilton Hotel and Marriot Hotel”.6
Chapter 1: INTRODUCTION..........................................................................................................6
1.1 Research Objective...........................................................................................................7
CHAPTER 2 - LITERATURE REVIEW........................................................................................8
Porter’sFive Forces............................................................................................................11
Competition in the Industry..............................................................................................11
Potential of New Entrants Into an Industry.....................................................................11
Power of Suppliers..............................................................................................................12
Power of Customers...........................................................................................................12
Threat of Substitutes..........................................................................................................12
Value Chain Analysis of primary activities of Hilton Hotel...........................................13
To evaluate the business model of Marriott and Hilton hotel........................................15
CHAPTER 3 - Research Methodology..........................................................................................16
CHAPTER 4 - Analysis................................................................................................................19
Financial performance of Hilton & Marriott 2017 -2019...............................................21
REFERENCES..............................................................................................................................24
APPENDIX....................................................................................................................................26
Hilton Worldwide Holdings Financial Statements 2017 – 2019..........................................26

HILTON WORLDWIDE HOLDINGS INC. CONSOLIDATED STATEMENTS OF
OPERATIONS.....................................................................................................................27
Income Statement of Marriot International, 2017 – 2019....................................................28
MARRIOTT INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF INCOME
Fiscal Years 2019, 2018, and 2017......................................................................................28

Title: “To analyse financial position and performance between Hilton Hotel
and Marriot Hotel”
Chapter 1: INTRODUCTION
Accounting is defined as the method of reporting of financial transactions relating to a company
The mainly includes the review, examination and disclosure to managers, authorities and
taxation entities about company transactions. The reporting financial reports are a succinct
description of the accounting activities, which indicates the expenses, financial status and
working capital of a business. Finance is a word for matters involving money and wealth
management, development and research (Cockcroft, 2018). It may be categorized loosely into
three categories: public affairs, industrial and personal finance. Public financing covers revenue
schemes, government spending, budgeting practices, strategy and tools for stability, debt
problems, among other financial considerations. Corporate financing includes the administration
of a company's properties, obligations, sales and debts. Personal finance describes all adult or
family financial choices and practices involving budgeting, taxes, mortgage plans, investments
and pension preparation.
The main rationale regarding writing this research to better understand the importance of
finance and accounting for large company like “Hilton and Marriot”. This is because proper
accounting helps to record each and every business transaction within accurate books and
financial statement which further support to make best decision for growth and expansion of
business operation. Accounting plays a critical role in operating a company as it lets you monitor

profits and spending, maintain regulatory enforcement, as well as provide creditors, managers,
and government with detailed financial details that can be used when making an investment
decision (Smith, 2018). Hilton and Marriot financial statements represent results of activities and
also the financial status. That is to say, they help user to understand financially what's going on
with the respective company.
About Hilton and Marriot
Hilton Worldwide Holdings Inc. is a US-based massive company which operates and performs a
large range of hotels & restaurants, previously called Hilton Hotels Corporation. The business is
now headed by Christopher, J. Nassetta, and was established by Conrad Hilton in May 1919.It
has 18 labels in different business units, namely Conrad Hotels & Resorts, Hilton Canopy. The
spin-offs for Park resorts and hotels including Hilton Grand Holidays were concluded in January
2017 (Crookes, 2018). As early as 2018 the firm became a completely autonomous, publicly-
traded corporation (as in the pre-buy-out day, much as in the exact days) following the sale of the
black rock as well as the HNA group. In 2019, nearly 97 % of Hilton-based branded bedrooms
were operated by individual firms or operators. While owning Hilton in 2007–13, the Blackstone
Group pursued the strategy of increasing the availability of Hilton primarily by way of
franchising agreements, even when Hilton was actually operating relatively few new houses.
About Marriott:
Marriott International is an American company that runs and handles a strong inventory of hotel
industry and connected accommodation services. Marriott International, Inc. It was developed by
J. The business is now headed by Willard Marriott, its parent, Bill Marriott, CEO, and Arne

Sorenson, Chairman and chief executive officer. The world's biggest hotel chain is Marriott
International. Marriott International was founded in 1993 when the Marriott Group, Marriott and
Host Marriott Company, was split into two entities. In 1995, Marriott became the world's largest
hotel business to give guests the possibility of booking online through MARSHA (Marriott's
automated pricing structure for hotel accommodations) introduction of the product (Carnegie,
2019).
1.1 Research Objective
1. Analyse the competitive environment by undertaking a 5 Forces analysis of Hilton.
2. Analyse the primary activities of Hilton’s Value Chain.
3. Assess Hilton hotels Business model to see if it is fit for purpose.
4. Critically evaluate the financial performance of Hilton & Marriott 2017 -2019.