3 ms·
98% of Marriott properties are actually owned by people who are not Marriott. Source: their annual report. I went looking for this gotcha, because the first t
by patio11 12y ago
98% of Marriott properties are actually owned by people who are not Marriott. Source: their annual report.
I went looking for this gotcha, because the first time I realized it, I became much more bullish about Airbnb's chances. Most of the major hotel chains have been working hard for years to adopt the capital structure that Airbnb had on day 1.
Everyone wants to be a brand/online ordering system which just drives business to contracted hotels for a fat cut. This makes them vastly more capital efficient, reduces their exposure to e.g. Chinese real estate, and lets them get e.g. 20% of a night's stay with 1% of the staffing requirements of actually running hotels.
- floody-berry 12y agoYou mean hotels would like to be glorified web directories with hundreds of thousands of 'employees' who provide the rooms, do all the work, are solely on the hook for the vast number of laws and regulations they're breaking, and pay the hotels for this privilege? Next you'll be saying insider trading is lucrative as long as you don't get caught.
- fdsafsdfgds 12y agoMy parents ran a small hotel associated with a major chain and you don't know what you're talking about. There are multiple models used by hotel chains for years. Some lease properties that they brand and run. Some get paid to manage properties owned by third parties. Others franchise to property owners. These models are vastly different from what Airbnb has. In every case the hotel chain has a lot of control and the inventory locked in. Airbnb has no control over its inventory and doesn't own anything. The risks of this are huge. Btw Marriott still owns a couple billion dollars worth of real estate.