Kathleen Oberg on business model
From Marriott CFO on How the Company Grew to Become the Largest Hotel Chain | WSJ · · TheWallStreetJournal
“We were the first ones to really do the concept of separating the real estate from the management, which allowed us to be better at building brands, allowed us to be better at growing, allowed us to listen more to our owners and franchisees and customers.”
On , Kathleen Oberg, CFO & Executive VP of Development at Marriott International Inc, spoke about business model during Marriott CFO on How the Company Grew to Become the Largest Hotel Chain | WSJ on TheWallStreetJournal.
About Kathleen Oberg
Kathleen Oberg, CFO and EVP of Development at Marriott International, has discussed the company's growth strategy and operational model in media appearances. In a 2024 interview with the Wall Street Journal, Oberg stated that Marriott was the first hotel chain to separate real estate ownership from management, a model she said allowed the company to focus on building brands and growing more quickly. She noted that the company holds only about 7% of global market share and sees "lots of opportunity for future growth." Oberg cited the StudioRes brand as an example of Marriott entering the mid-scale extended-stay segment based on customer research and feedback from owners and franchisees. She also said that returns on investment for hotel owners are driven by efficient costs and revenue from customers, and that amenities such as multi-use bar and lounge spaces have shown "tremendous returns." In a 2021 interview with Bloomberg, Oberg addressed the impact of the COVID-19 pandemic on Marriott, describing it as "a shock" and "a kick in the butt." She said the furloughs and layoffs the company implemented were "necessary to survive." Oberg noted that Marriott had hired 40,000 people since the beginning of the pandemic and emphasized the importance of technology, such as mobile key entry, in improving productivity for both customers and owners. She described the CFO role as having broadened beyond financial oversight to include communicating strategy and value to all constituencies. Oberg also stated that over 60% of her global finance team are women and over a third are people of color, which she said makes the company better in terms of ideas and performance.