THE INTERVIEW : ARNE SORENSON
through the implications of 9 / 11 , an ill-timed launch of the still fledgling Edition brand in 2007 and , most recently , by spinning off a struggling timeshare business .
Now Sorenson is charged with taking Marriott International to its next logical step as the first non-family member to run the business . HOTELS had a chance to talk with the tech-savvy father of four about his initial plans , his point of view on various industry affairs , and what makes him different than the man called “ Mr . Marriott .”
HOTELS : How is your style different from Mr . Marriott ’ s ?
Arne Sorenson : We worked together for 15 years , and I learned an awful lot , so we have more similarities than differences . We are both committed to listening to the organization and our teams to make sure we are getting input we like to have . We are both action-oriented and to some extent wired to make decisions , and maybe a little frustrated with how long things take .
Among the differences is that I use technology in a way he doesn ’ t . I am connected to my global team by email all the time and likely to be engaged in dialogue with my team via email
Guestroom at the Edition in Istanbul
constantly , and not as likely to send a handwritten note that asks for analysis .
I think both of us love to be in the field . People have talked about how Mr . Marriott visits 200 or 300 hotels a year . I have not counted how many hotels I have visited , but I am out with our teams , in hotels and markets with owners a great deal of the time .
H : How will owners and franchisees notice a difference with you as CEO ?
AS : I don ’ t think they will sense a huge difference . In many respects , this is what I aim for — a continuation of what we have been about the last number of years . I may be a little more accessible , but not meaningfully different . I am obviously younger than Bill Marriott , which may come through in ways that are hard to gauge . I may be more likely to be with owners on the golf course on occasion . H : What are your first goals as CEO ? AS : Our major emphasis is continued focus on globalization . It is about getting right our leadership team outside the U . S ., about getting our organization right so that we are distributing the right level of authority to folks who are running those businesses . It is about making sure we have the right growth platforms to seize the opportunities in those markets , and about the way we market our brands in those markets — both to capture travel within those markets and make sure we are building loyalty among folks who live there when they travel to other parts of the world .
H : Other than Mr . Marriott , where do you go for advice ?
AS : I love to talk to various voices within our organization , and sometimes that has nothing to do with the chain of command . I call on folks who are experienced and whose judgment is such that they may have a perspective I find useful . I talk to my adult children and wife . My kids have a connection to the popular world that increasingly they tell me I don ’ t have . I love to bounce things off them when it comes to style , media or F & B questions .
H : What do you think about the state of the business ?
AS : As bad as the recession was , we are back to a point where in most markets hotel-level revenues are approaching their peak in nominal terms . In 2012 , we are likely to see a majority of markets getting closer to peak revenues . Our tremendous unit growth story continues even through recession . As a company we will make as much in terms of earnings per share for our lodging business in 2012 as we did during the last peak — within a range . The recession is something we are coming through well and will solidly leave behind here .
H : What are your short-term expectations for business out of Western Europe ?
AS : It is likely we will see RevPAR in Europe perform at the bottom end of the big markets across the globe in 2012 . Whether that is modestly positive or modestly negative , we will have to see how the year develops , but it will be lower than other markets . That will be driven by everything we are reading in the newspaper today , including the likelihood that a number of these markets already are in recession .
On the bright side , it won ’ t be a train wreck in Europe because we have many more people in developing parts of the world finally building the personal and business resources that are necessary for them to experience travel , and they want
38 HOTELS March 2012 www . hotelsmag . com