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Group A12
Abhilash Jhamb – 1701062
Anmol Mahajan – 1801011
Ishaan Bhadouria – 1801021
Shivam Malhotra – 1801049
Smriti Khare – 1801053
1a. What is Marriott’s financial condition?
Company is under a lot of long-term debt of $2979 million dollars in year 1991 as JW Marriott
Jr. acquired properties for expansion of Marriott corporation. The long term loan is difficult
to recover in near future as they are unable to sell their properties because of stagnation of
property market. Hence, their CFO decided to divide Marriott corporation into two segments:
Marriott International Incorporated(MII) which would comprise of Marriott’s core business
and Host Marriott(HMC) which would retain MC’s real estate holdings. HMC will retain most
of the debt of the Marriott amounting to 76% of the total debt.
1c. Do you see any concern with ‘Project Chariot’ as a restructuring intervention?
Though ‘Project Marriott’ benefits shareholders, it puts bondholders on risk because of lack
“event risk” covenants. If implemented, project Chariot may make bondholders to lose trust
on Marriot Corp. However, if bondholders are reassured of making whole in the long run,
bondholders can be placated and project Chariot can be implemented.