Marriott's VC to Exit in March - Analyst Blog

Bethesda, Maryland-based Marriott International, Inc (MAR), a lodging company announced that William J. Shaw, the vice chairman of the company, will retire on March 31, after serving Marriott for 37 years.

Mr. Shaw, 65, had started his journey at Marriott in 1974 and became corporate controller in 1979. Before taking on the role of vice chairman in 2009, he has also served the company as vice president for 4 years, senior vice president of finance and treasurer for 2 years, chief financial officer and executive vice president for 4 years, president of Marriott's service group for 5 years and president and chief operating officer for 12 years.

Mr. Shaw has played a key role in developing the company, as Marriott, which was once a conglomerate managing 12 assorted businesses in 1974, transformed to a global lodging leader with more than 3,500 hotels and timeshare resorts in 70 countries. Under his leadership Marriott easily sailed through all the ups and down and became one of the renowned brands.

Marriott's management has yet to announce the name of Mr. Shaw's replacement.

Marriott has also recently announced the retirements of A. Bradford Bryan, Jr, executive vice president and head of the company's architecture and construction division and Carl Wilson, executive vice president and chief information officeron March 31. Mr. Bryan will be succeeded by Ronald T. Harrison and Mr. Wilson by Bruce Hoffmeister.

Thus, significant management changes are taking place in the company and we prefer to stay on the sidelines on account of the appointment of the new vice chairman.

Given the company's strong pipeline, significant international exposure, solid balance sheet, lower operating cost structure, favorable pricing and increased market share, we believe it is one of the leading worldwide hospitality companies with a positive long-term outlook. However, the company faces stiff competition from major hotel chains like Intercontinental Hotels Group plc (IHG) and Starwood Hotels & Resorts Worldwide Inc. (HOT).

 
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