as CEO , he got nearly 30,000 emails from Marriott associates around the world , asking what he needed of them . “ So when you take on a challenge like that , to know you ’ ve got this army of passionate leaders and professionals , it gives you a lot of options ,” he said .
At the time of his appointment to CEO , The Wall Street Journal called it one of the most challenging jobs in American business . In the world of development , from which Capuano came , freneticism rules the day , jumping from meeting to meeting , closing deals . The CEO role is a different animal altogether , calling for magnetism and , like a good politician , kissing babies , if you will . Capuano draws from his father ’ s words to him as a boy to see him through . As a youngster , Capuano would play catch with his dad , but had trouble securing the ball . His frustration bubbling over , Capuano ’ s father said to him : “ You are thinking about it all wrong . All you have to do is slow down the ball in your mind and imagine it entering your mitt .” Those words have stuck with Capuano to this day .
When Capuano got the CEO job , he immediately called his dad , like any son would do . He fretted over the myriad tasks and responsibilities that impacted thousands of associates , owners , franchisees , suppliers , guests and hotels around the world . His dad ’ s response on the phone was not surprising . “ Slow down the ball ,” he said .
ON THE FRONTLINES One of the best parts of his current role is the amount of time he gets to spend with front-line associates , those who deliver the guest experience daily . It ’ s something that proved requisite during and after the pandemic , which Bill Marriott called the most significant challenge in the history of the industry .
The resilience of Marriott associates , and countless others who work for other brands , was palpable . In one exchange ,
Capuano met in Orlando with a culinary associate who was celebrating his 50th anniversary with the company . Capuano thanked him for his five decades of service with the company and asked him how excited he must be that the hotel was full again . Without missing a beat , the associate smiled and said , “ That ’ s how it ’ s supposed to be .”
Capuano leads a global company with an array of constituents from owners and operators to shareholder and guests . For a publicly traded company , forward motion and growth is front and center . Today , Marriott and its peers put their focus on an asset-light strategy and deriving fees from franchising . ( Marriott also manages many of its properties , typically higher-end hotels where it can exercise firmer control over the brand and guest experience .) Owners lean on their brands to help deliver profit , which today is getting tougher as expenses grow as high or higher than revenues , shrinking margins .
“ Our business model is a high-growth model ,” Capuano said . “ And that growth is on the shoulders and balance sheets of our partners .” In a frank moment , Capuano recognized that Marriott ’ s business model is not the same as a hotel owner ’ s business model , which is to say they aren ’ t always aligned . Brands , for instance , thrive on growth and are rewarded for it , while established owners don ’ t like new competition on their block . Still , Capuano is empathetic . “ I wish somebody could hit the pause button on the growth of expenses . As an organization , we have got to be keenly focused on continuing to do everything we can to leverage our channels , our loyalty platform to drive top-line revenue and look everywhere we can for margin . That mindset has to drive all of our decisionmaking ,” he said .
No conversation with a hotel company CEO can go without mention of this question : Are there too many brands ? Marriott ’ s brand house grew exponentially after its Starwood acquisition and its added brands subsequently , but Capuano doesn ’ t see it as a problem . He likens it to a Rubik ’ s Cube : “ When I think about the constituents that we serve , the thing I love about our portfolio is the breadth of choice that it offers . It ’ s incumbent on us to make sure each of those 30-plus brands have a well articulated distinct positioning in the minds of each of those constituents . It ’ s eight years on from Starwood and I would give us a grade of incomplete . Most of those brands , we ’ ve achieved the objective , but not on all of them and we work every day to get to that ultimate objective .”
Beyond brand management , technology is a major force within the hospitality industry . Marriott is in the midst of what Capuano referred to as “ a massive technology transformation ,” which includes replatforming its reservations and property management systems and loyalty platform “ that will unlock an extraordinary wealth of other opportunities , all with an eye toward improving the guest experience ,” he said .
Technology , such as the lightning speed evolution of AI , is impacting the hotel industry on a daily basis , but Capuano points out that technology and automation will — hopefully , in his mind — never replace the human touch .
Marriott recently hosted MIT graduate students at its Bethesda , Md ., headquarters and , at one point , Capuano was asked if , one day , there will be a hotel run with no employees . “ Gosh , I hope not ,” he responded .
Capuano , like many others , see new technology as freeing up time for employees that will lead to operating efficiencies . “ If there is an advance in technology that creates 60 seconds of efficiency for a front-desk agent and they can use that incremental 60 seconds to better engage with the guests and understand the purpose of their trip and improve their experience , then it ’ s great .”
May / June 2024 hotelsmag . com 17