1 00:00:02,520 --> 00:00:05,600 Speaker 1: When the COVID pandemic brought global travel to a standstill. 2 00:00:05,680 --> 00:00:11,280 Speaker 1: In the impact on the hotel industry was devastating. There 3 00:00:11,360 --> 00:00:16,080 Speaker 1: was like nothing you could have imagined. It was a shock, 4 00:00:16,360 --> 00:00:21,040 Speaker 1: was kicking the butt. There's very little that didn't change 5 00:00:21,360 --> 00:00:25,840 Speaker 1: during the pandemic for the global chance. It's comparable to 6 00:00:25,960 --> 00:00:31,120 Speaker 1: maybe five consecutive nine elevens what it did to demand Marriott, 7 00:00:31,200 --> 00:00:35,519 Speaker 1: the world's largest hotel chain, so revenues plummet by fifty in. 8 00:00:36,880 --> 00:00:41,320 Speaker 1: Another blow came in early one when CEO Arnie Sorenson 9 00:00:41,440 --> 00:00:45,040 Speaker 1: lost his battle with pancreatic cancer. Long time Mary and 10 00:00:45,159 --> 00:00:49,880 Speaker 1: executive Tony Capuano succeeded Sorenson, and despite the setbacks, he's 11 00:00:49,920 --> 00:00:54,240 Speaker 1: optimistic about the future. Part of my confidence in the 12 00:00:54,320 --> 00:00:57,280 Speaker 1: ability to lead the company through this crisis is I 13 00:00:57,320 --> 00:00:59,920 Speaker 1: have the benefit of what I've called a long tenured, 14 00:01:00,040 --> 00:01:03,560 Speaker 1: battle tested team. A key member of this team a 15 00:01:03,720 --> 00:01:10,679 Speaker 1: CFO le Nielberg. She really is unflappable in terms of 16 00:01:11,000 --> 00:01:14,600 Speaker 1: the way in which she handles business challenges. I think 17 00:01:14,640 --> 00:01:18,600 Speaker 1: she goes well beyond maybe the quote traditional CFO role. 18 00:01:19,319 --> 00:01:23,360 Speaker 1: She's involved in every aspect of the business. The openings 19 00:01:23,360 --> 00:01:25,760 Speaker 1: in Q four we're still right on target. We've even 20 00:01:25,800 --> 00:01:29,959 Speaker 1: had a couple grosser uh net. Not only is she 21 00:01:30,040 --> 00:01:33,520 Speaker 1: obviously a wonderful steward of the company's balance sheet, but 22 00:01:33,600 --> 00:01:37,000 Speaker 1: I rely on her heavily as any leader would as 23 00:01:37,000 --> 00:01:39,480 Speaker 1: we try to look around the corner. Part of our 24 00:01:39,560 --> 00:01:42,679 Speaker 1: job is to make sure what do customers want? What 25 00:01:42,800 --> 00:01:45,200 Speaker 1: are they thinking that they want next year and the 26 00:01:45,280 --> 00:01:48,400 Speaker 1: next year. And that takes investment, and that takes thinking 27 00:01:48,440 --> 00:01:51,480 Speaker 1: ahead of time of where you want to get. You 28 00:01:51,560 --> 00:02:10,080 Speaker 1: could call Lenielberg Mary it's Chief future Officer. I always 29 00:02:10,120 --> 00:02:14,080 Speaker 1: love finance. I did figure out that once I'd worked 30 00:02:14,280 --> 00:02:17,760 Speaker 1: at a financial services firm that it was a great 31 00:02:17,800 --> 00:02:20,880 Speaker 1: experience for a few years, but that I ultimately wanted 32 00:02:20,919 --> 00:02:24,440 Speaker 1: to join a team for a more long term way 33 00:02:24,520 --> 00:02:28,080 Speaker 1: to try to build a business. Over joined Marriott as 34 00:02:28,120 --> 00:02:32,320 Speaker 1: part of its investor relations group. In as is often 35 00:02:32,400 --> 00:02:36,480 Speaker 1: the case for many people, things evolved, the company grows, 36 00:02:37,200 --> 00:02:41,240 Speaker 1: opportunities show up, and I really was able to build 37 00:02:41,280 --> 00:02:44,200 Speaker 1: a set of skills and experiences that helped prepare me 38 00:02:44,880 --> 00:02:50,000 Speaker 1: for the CFO role, not only in corporate level roles, 39 00:02:50,120 --> 00:02:56,120 Speaker 1: but also operational and international. She's being chief financial officers 40 00:02:56,120 --> 00:02:59,880 Speaker 1: since the year Mary had acquired Star With Hotels and 41 00:03:00,000 --> 00:03:03,000 Speaker 1: Resorts and became the largest hotel chain in the world. 42 00:03:04,240 --> 00:03:08,200 Speaker 1: Although that scale remains an advantage all the industries major 43 00:03:08,200 --> 00:03:11,200 Speaker 1: players are finding it crucial to innovate in the wake 44 00:03:11,240 --> 00:03:17,000 Speaker 1: of an unprecedented disruption that was the wakeup coding for 45 00:03:17,680 --> 00:03:20,280 Speaker 1: you know, rethinking some of the operations and to try 46 00:03:20,400 --> 00:03:24,360 Speaker 1: to figure out smarter ways to operate. The large hotel 47 00:03:24,440 --> 00:03:27,520 Speaker 1: chains are very much still in the mode of figuring 48 00:03:27,520 --> 00:03:30,280 Speaker 1: out what the consumer is going to look like, what 49 00:03:30,440 --> 00:03:34,160 Speaker 1: guest demands are, what preferences have changed, How does Marriott 50 00:03:34,240 --> 00:03:39,280 Speaker 1: need to reinvent itself in these very uncertain times. I 51 00:03:39,320 --> 00:03:41,920 Speaker 1: think a lot of the initiatives that were in place, 52 00:03:41,960 --> 00:03:44,680 Speaker 1: a lot of the strategy that was in place even 53 00:03:44,760 --> 00:03:48,960 Speaker 1: before the pandemic began to unfold, will continue to serve 54 00:03:49,080 --> 00:03:53,720 Speaker 1: us well continued global growth. More than sixty of our 55 00:03:53,760 --> 00:03:57,040 Speaker 1: pipeline is outside the United States today. I think that 56 00:03:57,240 --> 00:04:01,200 Speaker 1: will continue to increase as a percentage. When you think 57 00:04:01,200 --> 00:04:04,280 Speaker 1: about market share for the company. Inside the US, we 58 00:04:04,320 --> 00:04:07,160 Speaker 1: have about a sixteen percent share of the hotel rooms, 59 00:04:07,360 --> 00:04:10,560 Speaker 1: while outside the US we have three But no doubt 60 00:04:10,640 --> 00:04:13,440 Speaker 1: I would expect that we will see greater growth rates 61 00:04:13,440 --> 00:04:17,040 Speaker 1: of our rooms outside the US than inside the US. 62 00:04:17,240 --> 00:04:20,040 Speaker 1: Does that mean that you'll be putting more investments overseas 63 00:04:20,080 --> 00:04:23,920 Speaker 1: as well? Well? Investments is a is an interesting word, 64 00:04:24,440 --> 00:04:29,800 Speaker 1: but the capital structure of deals varies a lot by market. So, 65 00:04:29,880 --> 00:04:33,600 Speaker 1: for example, UH in some markets in Asia Pacific there's 66 00:04:33,640 --> 00:04:37,160 Speaker 1: far less use of debt, while in the US there 67 00:04:37,240 --> 00:04:39,679 Speaker 1: is much more use of debt to construct a hotel, 68 00:04:40,200 --> 00:04:44,200 Speaker 1: So the investment needs are often different for an owner 69 00:04:44,400 --> 00:04:49,200 Speaker 1: outside the US than inside the US. Notice issue refers 70 00:04:49,440 --> 00:04:53,680 Speaker 1: to owners. That's because Marian owns a very small percentage 71 00:04:53,680 --> 00:04:57,320 Speaker 1: of properties that carry its name. The majority are owned 72 00:04:57,320 --> 00:05:00,520 Speaker 1: and operated by franchise e s, while the company operates 73 00:05:00,520 --> 00:05:05,320 Speaker 1: others under long term management agreements. This asset led business 74 00:05:05,360 --> 00:05:08,760 Speaker 1: model presents the CFO with a unique set of opportunities 75 00:05:08,920 --> 00:05:12,520 Speaker 1: and challenges. Because we don't own all of our hotels, 76 00:05:12,640 --> 00:05:15,240 Speaker 1: we have far less debt. We would never have been 77 00:05:15,279 --> 00:05:18,520 Speaker 1: able to grow as fast as we've grown and become 78 00:05:18,520 --> 00:05:22,000 Speaker 1: more attractive to our customers without having the capital from 79 00:05:22,040 --> 00:05:27,560 Speaker 1: all these hundreds of owners providing capital. The challenges of 80 00:05:27,600 --> 00:05:31,400 Speaker 1: the model are you're managing a lot of different constituencies. 81 00:05:31,800 --> 00:05:35,280 Speaker 1: You you have to really consider the owner's needs and 82 00:05:35,320 --> 00:05:38,359 Speaker 1: what's going on in the financing markets. I'd say the 83 00:05:38,400 --> 00:05:43,520 Speaker 1: biggest challenges around prioritization about really picking your spots, going 84 00:05:43,600 --> 00:05:47,760 Speaker 1: after them, going after them quickly with your investment dollars, 85 00:05:47,839 --> 00:05:51,080 Speaker 1: and then adapting as time to change. And in a 86 00:05:51,160 --> 00:05:54,360 Speaker 1: time of rapid change, Marian has made it a priority 87 00:05:54,480 --> 00:05:59,159 Speaker 1: to invest in technology. We've worked really hard to improve 88 00:05:59,200 --> 00:06:02,560 Speaker 1: productivity and to be able to come up with innovation 89 00:06:03,000 --> 00:06:05,760 Speaker 1: that both is attractive to the customer but also helpful 90 00:06:05,800 --> 00:06:08,640 Speaker 1: to the owners. The fact that you can now go 91 00:06:08,800 --> 00:06:11,559 Speaker 1: and have your mobile key and not have to stop 92 00:06:11,560 --> 00:06:14,480 Speaker 1: by the front desk, and that you can communicate about 93 00:06:14,520 --> 00:06:18,120 Speaker 1: how you want your pillows, etcetera, all on your smartphone. 94 00:06:18,680 --> 00:06:21,120 Speaker 1: That's both great for the customer that's also great for 95 00:06:21,160 --> 00:06:24,280 Speaker 1: the hotel. Allows them to plan better, allows them to 96 00:06:24,400 --> 00:06:28,880 Speaker 1: run it more efficiently. There have been wonderful innovations. We're 97 00:06:28,920 --> 00:06:31,880 Speaker 1: not done. We we got plenty more to go. I 98 00:06:31,920 --> 00:06:35,680 Speaker 1: think the key is to really enhance technology, but to 99 00:06:35,760 --> 00:06:39,560 Speaker 1: realize that technology doesn't replace the face to face interaction. 100 00:06:40,200 --> 00:06:43,039 Speaker 1: I have to make sure we do things right. After all, 101 00:06:43,080 --> 00:06:46,000 Speaker 1: it's my name over the door. We are a people 102 00:06:46,080 --> 00:06:49,520 Speaker 1: first business, um, but how do we utilize technology to 103 00:06:49,680 --> 00:06:53,200 Speaker 1: enhance the services we can deliver and make those services 104 00:06:53,240 --> 00:06:57,159 Speaker 1: more efficient. Um you know, with with the cost of 105 00:06:57,240 --> 00:07:02,360 Speaker 1: wages going up and uh costs of doing business increasing 106 00:07:02,760 --> 00:07:05,520 Speaker 1: every year, we have to figure out how to do 107 00:07:06,040 --> 00:07:09,320 Speaker 1: more with what we have and how to utilize technology 108 00:07:09,400 --> 00:07:14,760 Speaker 1: to become better. At our craft founded in nine seven 109 00:07:14,840 --> 00:07:17,880 Speaker 1: as a root beer stand in Washington, d C. Marian 110 00:07:18,000 --> 00:07:21,400 Speaker 1: has grown from a tiny family business into the world's 111 00:07:21,560 --> 00:07:25,560 Speaker 1: largest provider of hotel rooms. As it's added millions of 112 00:07:25,600 --> 00:07:30,680 Speaker 1: new customers, it's also expanded its customer loyalty programs. We 113 00:07:30,680 --> 00:07:33,960 Speaker 1: were the first in the industry to have a loyalty program, 114 00:07:34,000 --> 00:07:36,680 Speaker 1: so we understand the value and the importance of it. 115 00:07:37,440 --> 00:07:41,400 Speaker 1: Fighting twenty the public health crisis that ravaged global travel, 116 00:07:41,760 --> 00:07:45,800 Speaker 1: also threatened the consumer engagement these programs had built. Some 117 00:07:45,960 --> 00:07:49,000 Speaker 1: of our most loyal customers didn't stay in a hotel 118 00:07:49,080 --> 00:07:52,640 Speaker 1: for a year, but through our branded credit card programs, 119 00:07:52,720 --> 00:07:55,760 Speaker 1: through the partnership with Uber that we rolled out, we 120 00:07:55,880 --> 00:08:00,480 Speaker 1: found other mechanisms to keep connected with our customers even 121 00:08:00,480 --> 00:08:03,240 Speaker 1: in a period where they were grounded, not traveling at all. 122 00:08:03,720 --> 00:08:06,800 Speaker 1: The partnership with Uber allowed Mary at Bonvoy members are 123 00:08:06,880 --> 00:08:10,560 Speaker 1: in points through vines and food orders. The credit card 124 00:08:10,600 --> 00:08:14,280 Speaker 1: partnerships not only kept Mary had connected with customers, they 125 00:08:14,280 --> 00:08:17,960 Speaker 1: connected the company with funds at a critical moment. What 126 00:08:18,200 --> 00:08:19,960 Speaker 1: Marryott as well as Hilton did, they were in a 127 00:08:20,000 --> 00:08:23,200 Speaker 1: position to generate cash by pre selling points to their 128 00:08:23,560 --> 00:08:26,800 Speaker 1: their credit card partners. That shows just how much the 129 00:08:26,840 --> 00:08:30,840 Speaker 1: credit cards value the relationship. And you know, if you're 130 00:08:30,880 --> 00:08:34,400 Speaker 1: you're willing to make a one billion dollar cash advance 131 00:08:34,600 --> 00:08:37,440 Speaker 1: to a hotel company that was you know stock price 132 00:08:37,520 --> 00:08:42,520 Speaker 1: had dropped by means you really value the relationship and 133 00:08:42,559 --> 00:08:45,520 Speaker 1: you trust the partner. You truly trust the partner. They'll 134 00:08:45,520 --> 00:08:49,600 Speaker 1: make millions and millions of dollars from the branding of 135 00:08:49,800 --> 00:08:52,880 Speaker 1: their of the credit cards. And then additionally with that 136 00:08:53,040 --> 00:08:56,480 Speaker 1: the consumers get the points on that. What we're seeing 137 00:08:56,559 --> 00:08:58,679 Speaker 1: quite a bit this year is a lot of redemption 138 00:08:58,840 --> 00:09:01,600 Speaker 1: of those points. How that the world is opening up 139 00:09:01,600 --> 00:09:04,280 Speaker 1: at the end, we've enabled our customers to have more 140 00:09:04,360 --> 00:09:07,719 Speaker 1: choices and how to redeem those points. Um, they can 141 00:09:07,760 --> 00:09:10,520 Speaker 1: redeem them within our hotels, they can redeem them outside 142 00:09:10,520 --> 00:09:14,479 Speaker 1: of our hotels with the partnerships that we have through experiences, etcetera. 143 00:09:14,960 --> 00:09:18,280 Speaker 1: But I think it really helps our customers stay within 144 00:09:18,320 --> 00:09:21,560 Speaker 1: the ecosystem of Marriott. I got a view of that 145 00:09:21,640 --> 00:09:24,680 Speaker 1: ecosystem from Leni Obert when she showed me around the 146 00:09:24,760 --> 00:09:30,959 Speaker 1: Married Marquis Times Square originally opened, the hotel was recently 147 00:09:31,000 --> 00:09:34,160 Speaker 1: given a one d and thirty five million dollar renovation. 148 00:09:35,080 --> 00:09:38,120 Speaker 1: We started in the newly remodeled M Club Lounge, a 149 00:09:38,200 --> 00:09:43,760 Speaker 1: premier amenity for Bomboy members. Making our loyalty members now 150 00:09:43,760 --> 00:09:48,520 Speaker 1: a hundred and fifty seven million strong. Making them feel welcome, special, 151 00:09:48,600 --> 00:09:52,800 Speaker 1: and appreciated for their frequent travel with us really matters. 152 00:09:53,679 --> 00:09:57,359 Speaker 1: It feels that you're trying to own the full experience 153 00:09:57,400 --> 00:10:00,880 Speaker 1: of travel, whether it's very reco branded cards or your 154 00:10:00,960 --> 00:10:05,040 Speaker 1: travel insurance. Why is it important to bring your guests 155 00:10:05,080 --> 00:10:09,600 Speaker 1: into this ecosystem. It's all about engagement. One of the 156 00:10:09,640 --> 00:10:12,480 Speaker 1: most important things is looking around the corner. What are 157 00:10:12,520 --> 00:10:16,080 Speaker 1: the trends that you're seeing in customers, particularly in the 158 00:10:16,120 --> 00:10:20,960 Speaker 1: digital commerce space. Before obviously so many of our reservations 159 00:10:20,960 --> 00:10:24,120 Speaker 1: were made by the telephone. We now see that well 160 00:10:24,200 --> 00:10:26,880 Speaker 1: over a third of our reservations are made on our 161 00:10:26,920 --> 00:10:29,920 Speaker 1: app and on the digital platform. You can do so 162 00:10:30,040 --> 00:10:34,440 Speaker 1: much in terms of communicating with your customers and guess what, 163 00:10:34,600 --> 00:10:38,440 Speaker 1: it's also economically really efficient to be doing it that way. 164 00:10:38,960 --> 00:10:42,440 Speaker 1: The digital future is already in place for mariad guests, 165 00:10:42,480 --> 00:10:47,000 Speaker 1: transforming everything from the checking process to the traditional room key. 166 00:10:48,320 --> 00:10:52,120 Speaker 1: But even as technology creates efficiencies, there are areas of 167 00:10:52,240 --> 00:10:56,240 Speaker 1: rising costs on the horizon. After making deep staff cuts 168 00:10:56,240 --> 00:11:01,280 Speaker 1: in Maria needs to rebuild its workforce. For sure. The 169 00:11:01,320 --> 00:11:05,160 Speaker 1: most painful part of this entire pandemic was about the 170 00:11:05,240 --> 00:11:08,360 Speaker 1: furloughs and layoffs that we had to do. It was 171 00:11:08,440 --> 00:11:11,680 Speaker 1: necessary to survive to make sure we got through to 172 00:11:11,760 --> 00:11:15,520 Speaker 1: the other side. Now the company not only faces competition 173 00:11:15,640 --> 00:11:19,040 Speaker 1: for workers in an economy reshaped by the pandemic, it's 174 00:11:19,080 --> 00:11:21,440 Speaker 1: trying to do this while wages in the industry are 175 00:11:21,559 --> 00:11:25,920 Speaker 1: rising and when customer and employee expectations are in a 176 00:11:25,960 --> 00:11:29,040 Speaker 1: state of flux. One of the real things that sets 177 00:11:29,040 --> 00:11:33,960 Speaker 1: a hotel apart from home sharing platform like Airbnb is 178 00:11:34,000 --> 00:11:36,520 Speaker 1: the services that they offered to guests. So there's an 179 00:11:36,559 --> 00:11:39,760 Speaker 1: incredible tension as they work through. You know what those 180 00:11:39,800 --> 00:11:42,600 Speaker 1: guest expectations are, what their strategic placement in the market 181 00:11:42,720 --> 00:11:47,160 Speaker 1: is uh, and what their labor cost needs actually are. 182 00:11:47,400 --> 00:11:53,559 Speaker 1: So I do think they need to uh leverage technology 183 00:11:53,679 --> 00:11:58,120 Speaker 1: to reduce the number of unskilled jobs in hotel operation, 184 00:11:58,760 --> 00:12:02,960 Speaker 1: but they really need to provide jobs that require higher 185 00:12:03,040 --> 00:12:07,000 Speaker 1: level of skills so that they can they can reallocate 186 00:12:07,080 --> 00:12:10,360 Speaker 1: part of their pay roll to fewer workers and pay 187 00:12:10,400 --> 00:12:14,600 Speaker 1: them there. We have been able to hire people since 188 00:12:14,640 --> 00:12:17,800 Speaker 1: the beginning of the year in two thousand and Where 189 00:12:17,960 --> 00:12:21,360 Speaker 1: you see it is in certain really hot markets to 190 00:12:21,360 --> 00:12:24,920 Speaker 1: where you can see the shortages, but generally overall it 191 00:12:25,120 --> 00:12:29,360 Speaker 1: is improving. Technology may help Mary it need this challenge 192 00:12:29,360 --> 00:12:32,600 Speaker 1: as well. The company is rolling out a new labor 193 00:12:32,679 --> 00:12:37,000 Speaker 1: management system that will more precisely match staffing to custom 194 00:12:37,040 --> 00:12:42,439 Speaker 1: where demand. This labor management system allows a hotel to 195 00:12:42,720 --> 00:12:48,120 Speaker 1: much more assigned labor just in time, so you're able 196 00:12:48,160 --> 00:12:50,480 Speaker 1: to say, I see what's coming over the next couple 197 00:12:50,480 --> 00:12:52,960 Speaker 1: of days, I can work the shifts in a way 198 00:12:53,000 --> 00:12:56,520 Speaker 1: that frankly gives the associates more flexibility but also makes 199 00:12:56,559 --> 00:13:00,719 Speaker 1: the staffing levels more appropriate used to be prior and 200 00:13:00,760 --> 00:13:03,200 Speaker 1: that it would be more of Okay, I'm gonna plan 201 00:13:03,320 --> 00:13:06,880 Speaker 1: for all of next month. Done your workship, you know 202 00:13:06,960 --> 00:13:10,600 Speaker 1: what it is. Now there's more flexibility and more adaptability 203 00:13:10,640 --> 00:13:14,079 Speaker 1: to what's happening in the business of the hotel. Flexibility 204 00:13:14,080 --> 00:13:16,760 Speaker 1: and agility will be critical massets for Marian in the 205 00:13:16,800 --> 00:13:21,079 Speaker 1: foreseeable future would lead your travel, driving the demand recovery 206 00:13:21,160 --> 00:13:25,080 Speaker 1: and the forecast for business travel still uncertain. Hotel companies 207 00:13:25,120 --> 00:13:29,080 Speaker 1: are hoping to attract a hybrid customer, adapting their spaces 208 00:13:29,080 --> 00:13:33,200 Speaker 1: and services to a category known as pleasure. You're gonna 209 00:13:33,240 --> 00:13:36,040 Speaker 1: be reminding people that say, hey, you know, take your 210 00:13:36,080 --> 00:13:39,079 Speaker 1: family for the weekend, but maybe stay an extra night, 211 00:13:39,400 --> 00:13:41,640 Speaker 1: and we have the business center, and we have the 212 00:13:41,679 --> 00:13:46,360 Speaker 1: guaranteed WiFi and reception that can ensure that you can 213 00:13:46,400 --> 00:13:49,520 Speaker 1: get business done from perhaps the pool or the beach 214 00:13:49,640 --> 00:13:53,240 Speaker 1: on come Monday morning, where I'm a business traveler, where 215 00:13:53,240 --> 00:13:56,400 Speaker 1: I likely will choose mobile check in, mobile key, come 216 00:13:56,480 --> 00:13:59,120 Speaker 1: up the elevator straight to my room. Then I may 217 00:13:59,160 --> 00:14:01,800 Speaker 1: go on a family vacation. I want to talk to 218 00:14:01,840 --> 00:14:04,280 Speaker 1: the front desk clerk and find out about a restaurant 219 00:14:04,400 --> 00:14:07,320 Speaker 1: that note orrists are aware of. So now when you 220 00:14:07,360 --> 00:14:10,560 Speaker 1: look around this hotel and you look before, it would 221 00:14:10,600 --> 00:14:12,920 Speaker 1: be really easy to tell exactly who was on a 222 00:14:12,960 --> 00:14:16,200 Speaker 1: business trip and who was here, you know, seeing the 223 00:14:16,240 --> 00:14:19,840 Speaker 1: city for leisure now much more of a blend people 224 00:14:19,880 --> 00:14:23,040 Speaker 1: staying longer over a weekend. That means we need to 225 00:14:23,040 --> 00:14:26,040 Speaker 1: have space that works for everyone, no matter what the 226 00:14:26,080 --> 00:14:32,080 Speaker 1: purpose for hotels, conventions, big events drawing big revenue. Right, 227 00:14:32,640 --> 00:14:35,480 Speaker 1: what do you do after the pandemic when perhaps we 228 00:14:35,560 --> 00:14:38,960 Speaker 1: won't have as many conventions and events as in the past. Well, 229 00:14:39,000 --> 00:14:41,920 Speaker 1: I think first of all, we ultimately will uh that 230 00:14:41,960 --> 00:14:45,200 Speaker 1: business is coming back. I think one of the interesting 231 00:14:45,240 --> 00:14:48,120 Speaker 1: things we're seeing in the group business is that people 232 00:14:48,160 --> 00:14:52,840 Speaker 1: are not canceling farther out. They're canceling really close in 233 00:14:53,200 --> 00:14:56,840 Speaker 1: where there's still some discomfort in traveling, but where there 234 00:14:57,000 --> 00:15:00,480 Speaker 1: is bookings that they feel comfortable doing. In the next months, 235 00:15:00,720 --> 00:15:04,200 Speaker 1: those bookings are ramping up. So we've seen group get 236 00:15:04,240 --> 00:15:06,960 Speaker 1: better and better and better with each quarter of this year, 237 00:15:07,040 --> 00:15:10,520 Speaker 1: and we're actually really excited about what we see in 238 00:15:12,960 --> 00:15:15,840 Speaker 1: Lene Oberg's job always keeps her on her toes, and 239 00:15:15,920 --> 00:15:18,640 Speaker 1: when she's not on the job, her favorite pursuits are 240 00:15:18,680 --> 00:15:22,480 Speaker 1: active as well. I love to run. Been part of 241 00:15:22,480 --> 00:15:25,320 Speaker 1: a women's running group for twenty three years and we 242 00:15:25,520 --> 00:15:28,120 Speaker 1: still run together three times a week. How does that 243 00:15:28,160 --> 00:15:30,320 Speaker 1: help you in the day to day job and the 244 00:15:30,440 --> 00:15:32,840 Speaker 1: grind that it is to be a CFO of such 245 00:15:32,880 --> 00:15:35,880 Speaker 1: a big corporation. You know, it's always been for me 246 00:15:35,960 --> 00:15:39,400 Speaker 1: a way to clean my head. Uh. You know a 247 00:15:39,440 --> 00:15:41,840 Speaker 1: lot of people say they run with music. I generally 248 00:15:41,880 --> 00:15:45,000 Speaker 1: don't run with anything. I really like the time to 249 00:15:45,800 --> 00:15:48,760 Speaker 1: think reflect. You've always heard the saying that people get 250 00:15:48,800 --> 00:15:51,480 Speaker 1: their best ideas when they're out for a run. There's 251 00:15:51,520 --> 00:15:56,640 Speaker 1: no doubt there's something to that. Mary's investments in the 252 00:15:56,680 --> 00:16:01,560 Speaker 1: future extent well beyond the doors of its hotels. In February, 253 00:16:02,080 --> 00:16:05,760 Speaker 1: the Marriatt Foundation announced that twenty million dollar endowment to 254 00:16:05,880 --> 00:16:10,840 Speaker 1: launch the Marriott Strenson Center for Hospitality Leadership at Howard University. 255 00:16:11,560 --> 00:16:15,040 Speaker 1: The partnership with a historically black institution aims not just 256 00:16:15,160 --> 00:16:18,400 Speaker 1: to bring more diversity to the industry, but to give 257 00:16:18,440 --> 00:16:21,400 Speaker 1: students the tools to rise to the top. But when 258 00:16:21,440 --> 00:16:23,640 Speaker 1: we first spoke about this, it was about building a 259 00:16:23,800 --> 00:16:27,160 Speaker 1: true partnership, really trying to solve an issue, and that 260 00:16:27,320 --> 00:16:31,360 Speaker 1: is the lack of underrepresented minorities, especially at the upper 261 00:16:31,360 --> 00:16:34,920 Speaker 1: echelon of these industries, and that what that is problematic, 262 00:16:35,400 --> 00:16:38,680 Speaker 1: and what this is is to provide a solution. I 263 00:16:38,720 --> 00:16:42,080 Speaker 1: think the positioning of that center is really unique in 264 00:16:42,600 --> 00:16:46,280 Speaker 1: being the one of the first to say publicly. We 265 00:16:46,440 --> 00:16:52,000 Speaker 1: will not develop entry event workers. We're going to develope 266 00:16:52,000 --> 00:16:55,040 Speaker 1: people that you will need to take seriously. When you 267 00:16:55,080 --> 00:16:57,960 Speaker 1: look at the travelers around the globe, it's a very 268 00:16:58,000 --> 00:17:03,960 Speaker 1: diverse group of travelers. And promoting diversity promotes new thought, 269 00:17:04,440 --> 00:17:09,119 Speaker 1: new ideas, UM. It makes organizations stronger, It makes organizations better. 270 00:17:10,000 --> 00:17:14,080 Speaker 1: It requires deliberate focus to drive the sort of UM 271 00:17:14,240 --> 00:17:17,439 Speaker 1: diverse workforce that we want. If you look at our 272 00:17:17,520 --> 00:17:21,720 Speaker 1: c suite, more than fifty of my direct reports are diverse. 273 00:17:22,280 --> 00:17:24,840 Speaker 1: If you look at our board, more than fifty percent 274 00:17:24,920 --> 00:17:29,320 Speaker 1: of our board composition is diverse. On the diversity inclusion side, 275 00:17:30,040 --> 00:17:32,800 Speaker 1: you know, I'm particularly proud in finance we have over 276 00:17:33,680 --> 00:17:37,919 Speaker 1: of my global finance team or women, over a third 277 00:17:38,040 --> 00:17:42,119 Speaker 1: are people of color. It makes us a better company, 278 00:17:42,440 --> 00:17:46,879 Speaker 1: not only from ideas, but from performance. The number of 279 00:17:46,880 --> 00:17:50,280 Speaker 1: women chief financial officers has been steadily rising over the 280 00:17:50,359 --> 00:17:53,440 Speaker 1: last deacade and a half. A study of nearly seven 281 00:17:53,680 --> 00:17:58,359 Speaker 1: companies shows their representation doubling since two thousand four. Line 282 00:17:58,359 --> 00:18:01,760 Speaker 1: Oberg intends to keep the trend towards diversity going as 283 00:18:01,800 --> 00:18:05,040 Speaker 1: a mentor in all areas of business. One of my 284 00:18:05,880 --> 00:18:10,280 Speaker 1: overall beliefs it is really important for leaders to be approachable, 285 00:18:11,119 --> 00:18:14,360 Speaker 1: and so the more that I can talk to anyone 286 00:18:14,560 --> 00:18:17,879 Speaker 1: in my shop or frankly, even out of my discipline 287 00:18:18,160 --> 00:18:20,520 Speaker 1: about what they're doing and how they're thinking about it, 288 00:18:21,040 --> 00:18:25,160 Speaker 1: hopefully it's helpful for both them and for the company. Unflappable, 289 00:18:25,359 --> 00:18:29,919 Speaker 1: responsible and approachable leneo Work has the expertise and the 290 00:18:29,960 --> 00:18:33,119 Speaker 1: people skills to see your marriat into the future. I 291 00:18:33,200 --> 00:18:36,480 Speaker 1: asked her what she sees when she looks ahead. What's 292 00:18:36,520 --> 00:18:39,480 Speaker 1: the opportunity for Maryatt in the next ten years and 293 00:18:39,640 --> 00:18:42,919 Speaker 1: most excites you? We are all about being in the 294 00:18:42,960 --> 00:18:47,440 Speaker 1: world's favorite travel company, and there are so many more 295 00:18:47,440 --> 00:18:51,119 Speaker 1: places for us to grow and so many more ways 296 00:18:51,160 --> 00:18:54,240 Speaker 1: for us to connect with our consumers. I do think 297 00:18:54,240 --> 00:18:57,800 Speaker 1: our size and scale gives us a unique opportunity. And 298 00:18:58,119 --> 00:19:00,560 Speaker 1: when I think about those opportunities, we gotta get at them. 299 00:19:00,640 --> 00:19:02,840 Speaker 1: We've got to make sure that we go and take 300 00:19:02,880 --> 00:19:06,159 Speaker 1: advantage of them. And so a lot of this is 301 00:19:06,240 --> 00:19:10,719 Speaker 1: about the translation of business strategy and financial resources and 302 00:19:10,760 --> 00:19:14,199 Speaker 1: putting them together in a way that provides value to 303 00:19:14,359 --> 00:19:18,480 Speaker 1: all of our constituencies. What's the challenge for marrying in 304 00:19:18,520 --> 00:19:20,960 Speaker 1: the next ten years that keeps you up at night, 305 00:19:21,359 --> 00:19:25,400 Speaker 1: pace of change. Pace of change. Uh, you know, all 306 00:19:25,440 --> 00:19:29,200 Speaker 1: of all of us have seen that technology has meant 307 00:19:29,280 --> 00:19:32,959 Speaker 1: that the pace of change has only accelerated. When I 308 00:19:33,000 --> 00:19:35,600 Speaker 1: think about when we would start a brand initiative twenty 309 00:19:35,680 --> 00:19:38,400 Speaker 1: years ago versus when you start it now, and how 310 00:19:38,480 --> 00:19:40,840 Speaker 1: quickly it takes to get it done and rolled out, 311 00:19:41,280 --> 00:19:44,800 Speaker 1: and what customers expect. They expect things really quickly all 312 00:19:44,840 --> 00:19:47,480 Speaker 1: of us. You know, you're on your smartphone. You're like, well, 313 00:19:47,520 --> 00:19:49,959 Speaker 1: why didn't I get that answer right away? And I 314 00:19:50,000 --> 00:19:52,800 Speaker 1: think that is one of our one of our biggest 315 00:19:52,840 --> 00:19:55,520 Speaker 1: challenges is trying to keep up with the pace of change. 316 00:19:56,080 --> 00:19:58,520 Speaker 1: How do you see your role as CFO changing in 317 00:19:58,560 --> 00:20:02,120 Speaker 1: the next ten years. Of course, you've got the standard 318 00:20:02,160 --> 00:20:06,040 Speaker 1: parts of the CFO role in reporting accurately and with 319 00:20:06,160 --> 00:20:10,200 Speaker 1: great transparency of our results in our state of health 320 00:20:10,520 --> 00:20:14,600 Speaker 1: critically important, But just as important is really helping the 321 00:20:14,640 --> 00:20:18,040 Speaker 1: company find ways to accelerate growth. For me, it is 322 00:20:18,160 --> 00:20:20,399 Speaker 1: very much about how to enable the growth that we 323 00:20:20,480 --> 00:20:23,840 Speaker 1: want to achieve. Less a skill set or area of 324 00:20:23,880 --> 00:20:26,800 Speaker 1: expertise that the CFO will need to develop in the 325 00:20:26,840 --> 00:20:33,360 Speaker 1: next ten years. Deep understanding of technology and where technology 326 00:20:33,480 --> 00:20:38,160 Speaker 1: is going, I think is number one. I think communication skills, 327 00:20:38,800 --> 00:20:41,840 Speaker 1: the need for good communication skills is only going to 328 00:20:41,920 --> 00:20:44,919 Speaker 1: continue to increase. Uh. You know, the old days, you 329 00:20:45,000 --> 00:20:47,400 Speaker 1: have the classic view of the CFO with the green 330 00:20:47,440 --> 00:20:50,119 Speaker 1: eye shades kind of sitting and making sure the numbers 331 00:20:50,160 --> 00:20:53,960 Speaker 1: all got tallied appropriately. I think it's much broader now 332 00:20:54,240 --> 00:20:57,040 Speaker 1: and it really is about making sure that all the 333 00:20:57,080 --> 00:21:01,919 Speaker 1: constituencies understand the strategy and the value that you're trying 334 00:21:02,400 --> 00:21:06,639 Speaker 1: to deliver. What's the best advice that you'd give to 335 00:21:06,760 --> 00:21:12,160 Speaker 1: somebody who got promoted to the CFO level today. Love 336 00:21:12,240 --> 00:21:16,360 Speaker 1: what you do. It's really important that you love what 337 00:21:16,400 --> 00:21:19,080 Speaker 1: you do. And then the other one is about listening. 338 00:21:19,960 --> 00:21:22,920 Speaker 1: You know, as a as a leader, there's this expectation 339 00:21:23,000 --> 00:21:26,720 Speaker 1: that perhaps you're gonna come out with what everybody should 340 00:21:26,720 --> 00:21:28,720 Speaker 1: go do in the edict of this is the way 341 00:21:28,720 --> 00:21:32,160 Speaker 1: we go. I actually find that the listening is where 342 00:21:32,240 --> 00:21:35,000 Speaker 1: some of the best decisions get made by listening to 343 00:21:35,080 --> 00:21:37,480 Speaker 1: team members so that you can say I want to 344 00:21:37,520 --> 00:21:39,920 Speaker 1: take part of that point of view and that point 345 00:21:39,920 --> 00:21:42,760 Speaker 1: of view to get to the best decision and strategy 346 00:21:43,119 --> 00:21:49,240 Speaker 1: for the company, and that takes really listening. Leaders who 347 00:21:49,320 --> 00:21:53,160 Speaker 1: listen are essential to a company that's determined to innovate, 348 00:21:53,720 --> 00:21:58,400 Speaker 1: especially when it's industry is in transition. That ability to lead, 349 00:21:58,760 --> 00:22:02,960 Speaker 1: combined with a willingness to learn, makes Leniolberg a chief 350 00:22:03,119 --> 00:22:13,080 Speaker 1: future officer. I'm Shererian. This is Bloombergh.