Phil Ammann
Marriott International, among other major hotel and hospitality chains, did a very respectable job during Hurricane Irma.
As the September storm forced many in South Florida to seek shelter points North, hotels and other services – like home-sharing Airbnb — stepped up in a big way to offer accommodations for victims and relief workers.
For that, we give hearty thanks to both Marriott and its President and CEO, Arne M. Sorenson.
Nevertheless, did Sorenson really have to humblebrag about how Irma (and Harvey before that) were great for Marriott’s bottom line?
In an earnings call Nov. 5, Sorenson noted that though the company’s budget process was not yet completed for the upcoming year, early indications show “growth will be similar to growth expected for 2017.”
He followed that up with this: “It’s a little bit counterintuitive, maybe … the impact of the hurricanes in Texas and Florida, not counting the Caribbean, were a net positive in September, not a net negative.”
Net positive? Good to hear, Arne.
In all fairness, Sorenson did preface that statement with some sobering words about Marriott’s “eventful” third quarter – from Hurricane Harvey and its “historic flooding” in Texas, to hurricanes Irma and Maria and the destruction in the Caribbean, Florida and parts of the southeast, as well as two earthquakes in Mexico and devastating fires in Northern California, all within a seven-week period.
“We have a presence in these communities, and our crisis management and property teams have worked tirelessly to ensure associate, guest and property safety,” Sorenson said. “Not only have these events damaged property and upended lives, they have also impacted local economies, many of which are very dependent on tourism.”
“As these areas repair, rebuild and recover, we encourage you to support their efforts.”
In the leadup to Irma’s slog across Florida, Attorney General Pam Bondi and Gov. Rick Scott launched a campaign to warn companies against price gouging – and implied that everyone (particularly the hospitality industry) to do the right thing.
And while many would agree Marriott did the right thing, somehow, by increasing profits in the storm’s aftermath, Sorenson’s words feel (just a little bit) wrong.
“Probably, most dramatically so in Texas where that was one of the weakest markets we had in the United States for the last year or two years, and fairly quickly, within days, recovery efforts are beginning and people who are looking for housing are filling up hotels,” Sorenson concluded. “And so, the Houston market and Florida market drove a bit of the outperformance in Q3.”
What else are we supposed to think when a CEO humblebrags Harvey and Irma-related profits?
Of course, Marriott did earn its accolades for being there to support communities affected by the hurricanes.
But did it have to be such a “win-win” for Sorenson and Marriott, when Floridians and Texans lost so much?
