Marriott Knows What They Are Doing

Implications: •Marriott is very good at managing multiple brands. •Marriott has successfully kept brands/cultures separate. •Marriott Needed a boutique brand. •Marriott has a history of success in developing brands.

Analysis: Marriott is the 800 pound gorilla in the hotel industry and they got there by being very, very methodical.   They are not the fastest but the are they are the most deliberate.  So Marriott's venture in the the boutique hotel market is typical of how they do things.  They were no where near the first to venture into this arena, because they wanted the concept to prove itself with others. (e.g. Starwood, Intercontinental etc.) and wanted to figure out who and how to manage this process internally as well as the overall strategy.  They wanted make make sure it was not a "me too" strategy, thus the choice of Ian Schrager was a terrific choice, even for company as conservative as Marriott.

Moreover, Marriott is excellent at managing multiple brands and cultures.  Clearly when they purchased the Ritz Carlton brand the inital concern that they would diminish the brand's cache proved to be unfounded.  The have continued to let the brand remain separate in order to maintain its unique identity.  While others, like Starwood, particulary with their Sheraton Hotel brand, has not had a clearly defined niche over the years, Marriott has been very disciplined in keeping each of their brands within their assigned niche.  In fact Starwood, admitting the error of their ways with Sheraton and using a page out of Marriott's play book is committed to having a more consistent product/niche for its's Sheraton Brand.
 
Therefore, given Marriott's conservative and methodical culture, their finally recognizing need the need to be in the boutique niche, and their history with other Marriott brands, this too should prove to be another successful brand.  The 800 pound gorilla will just keep getting bigger and better.