{"id":11027,"date":"2016-11-04T04:33:49","date_gmt":"2016-11-04T08:33:49","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/your-garden-view-just-became-an-ocean-view-marriott-and-climate-change\/"},"modified":"2016-11-04T04:38:04","modified_gmt":"2016-11-04T08:38:04","slug":"your-garden-view-just-became-an-ocean-view-marriott-and-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/your-garden-view-just-became-an-ocean-view-marriott-and-climate-change\/","title":{"rendered":"Your Garden View Just Became an Ocean View: Marriott and Climate Change"},"content":{"rendered":"

The title’s not just a wisecrack\u00a0– I was trying to get a rise out of you, but be sure that the tourism industry is looking for ways to do just the opposite to the world\u2019s sea levels. Hospitality will be drastically affected in coming years by environmental threats; with rising sea levels\u2019 inevitable effects on coastal tourism, the downward \u201csloping\u201d trend of good ski spots due to global warming, rapid demand fluctuation in response to extreme weather events, and temperature changes driving tourists away from the equator and closer to the poles, Marriott is looking for ways to do some housekeeping for the global environment. [3] [4]<\/em><\/p>\n

Marriott International, Inc. is a global leading lodging company with more than 5,700 properties in over 110 countries\u2026 So yeah, they\u2019re kind of a big deal. The aforementioned climate change factors are already very real challenges for Marriott\u2019s business; in their most recent 10K, Marriott details how increases in prevalence of destructive weather events, such as Hurricane Sandy in the Northeastern United States and the tsunami and earthquake in Japan, can cause declines in leisure travel and reduce demand for lodging. However, disaster events such as these are just the tip of the (melting) iceberg when it comes to Marriott\u2019s environmental concerns. With sea levels expected to rise by 2 meters by 2100, Marriott\u2019s coastal properties are in an extremely vulnerable position. Global increases in temperature present an even more impactful challenge to Marriott\u2019s business model; as the thermometer’s mercury level rises, so will the uncertainty of tourists\u2019 travel choices, and pro forma demand forecasts are especially important when your product is a building, since they\u2019re kind of tough to move. [2] [4] [6]<\/em><\/p>\n

I guess they could take a page out of Benihana\u2019s menu, and move their properties board by board to the new hot spots. They\u2019d win Starwood points in my book for creativeness. But I\u2019m going to pull the andon cord on that strategy until I can get some HBS students to simulate it. [no references required nor desired]<\/em><\/p>\n

The good news is, Marriott\u2019s not throwing up the Do Not Disturb sign and ignoring this scientific wake-up call. They believe they\u2019ve found the room key to chipping away at their portion of this global problem through several measures, including reducing energy and water consumption per occupied room by 20% by 2020, educating guests on how to conserve and preserve during their stays, installing electric vehicle chargers at many of their properties, and building greener hotels. Marriott actually piloted the world\u2019s first LEED Volume Program, which essentially provides developer partners with a pre-approved LEED-certified hotel prototype. This makes it easy for their partners to go green, and quickly put their financials back in the black, so they don\u2019t need to feel blue, and, well, that makes me proud to be Marriott Gold. Just kidding. I\u2019m Platinum. 50 Marriott properties are currently LEED-certified (the most in the industry), with dozens more in the pipeline. [2] [3] [7]<\/em><\/p>\n

However, I do have some\u2026 sigh\u2026 reservations about the extent of Marriott\u2019s efforts to reduce energy consumption. Marriott expects to increase their room count by 8% in 2016. Assuming the same number of rooms per property, that means 450+ new properties in 2016. As far as LEED-certified new properties go, \u201cdozens\u201d won\u2019t be enough. Even if you\u2019re Tobias F\u00fcnke from Arrested Development. [2]<\/p>\n

\"\"<\/p>\n

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And just because they never upgrade my room doesn\u2019t mean they shouldn\u2019t work more quickly to upgrade their existing fleet to be LEED-certified; less than 1% of their existing properties have the certification, and LEED renovations are a thing, so if you\u2019re renovating anyway, why not be a good LEEDer? [2] [8]<\/p>\n

To their credit, though, Marriott is ahead of the bell(man) curve on environmental practices when it comes to the hospitality industry. I\u2019m excited to see how their sustainability practices develop in the coming years.<\/p>\n

Thanks for reading. This is Mike Morgan, checking out.<\/p>\n

[651 very silly words]<\/p>\n

 <\/p>\n

[1] Marriott Website \u2013 Properties<\/p>\n

https:\/\/www.marriott.com\/hotel-search\/marriott-hotels-resorts-and-suites.hotels\/<\/a><\/p>\n

[2] Marriott 10K Annual Filing<\/p>\n

http:\/\/investor.shareholder.com\/MAR\/secfiling.cfm?filingID=1628280-16-11346&CIK=1048286<\/p>\n

[3] Marriott Corporate Responsibility Site<\/p>\n

http:\/\/www.marriott.com\/corporate-social-responsibility\/corporate-environmental-responsibility.mi<\/a><\/p>\n

[4] UN Intergovernmental Panel on Climate Change \u2013 2014 Report<\/p>\n

http:\/\/ipcc-wg2.gov\/AR5\/images\/uploads\/WGIIAR5-Chap10_FGDall.pdf<\/a><\/p>\n

[5] Marriott Fact Book<\/p>\n

http:\/\/web.archive.org\/web\/20160318163737\/http:\/\/files.shareholder.com\/downloads\/MAR\/1719275248x0x135543\/1E9C6628-768A-425F-AC1F-349A47CA6C2A\/factbook.pdf<\/a><\/p>\n

[6] Marriott\u2019s Wikipedia Page<\/p>\n

https:\/\/en.wikipedia.org\/wiki\/Marriott_International<\/a><\/p>\n

[7] Tourism and the Implications of Climate Change: Issues and Actions<\/p>\n

https:\/\/books.google.com\/books?id=Xf2laPAQvSwC&lpg=PA100&ots=CffqiJEx2X&dq=marriott%20climate%20change&pg=PA99#v=onepage&q=marriott%20climate%20change&f=false<\/a><\/p>\n

[8] LEED Facility maintenance and renovation policy<\/p>\n

http:\/\/www.usgbc.org\/credits\/existing-buildings-schools-existing-buildings-retail-existing-buildings-hospitality-exist-23<\/p>\n","protected":false},"excerpt":{"rendered":"

Excuse my tactless levity, but some hotels\u2019 longevity, will quickly turn to brevity, as oceans creep up steadily.<\/p>\n","protected":false},"author":2280,"featured_media":11028,"comment_status":"open","ping_status":"closed","template":"","categories":[307,305,1678,1295,1420,138],"class_list":["post-11027","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-hospitality","category-hotel","category-leed","category-leisure","category-marriott","category-travel"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"\nYour Garden View Just Became an Ocean View: Marriott and Climate Change - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/your-garden-view-just-became-an-ocean-view-marriott-and-climate-change\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Your Garden View Just Became an Ocean View: Marriott and Climate Change - 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