For more than 90 years, Marriott has lived by a core value established by their founder, JW Marriott, Sr., to “take care of guests and associates.” This enduring value is guiding them as they face the difficult challenge of responding to the coronavirus (COVID-19), which the World Health Organization declared a pandemic.
The value they possess came into limelight when Arne Sorenson, President & CEO of Marriott International addressed the Marriott associates in a video posted on Marriott International Inc’s LinkedIn/Twitter page.
Sorensen posted the video to give an update on the critical impact that COVID-19 had on Marriott’s business and the steps they are taking to respond to it. Calling this video as ‘the most difficult’ video ever to be released by Marriott International, Sorensen acknowledged the Marriott associates who have tested positive of coronavirus and those who are quarantined, a speedy recovery.
Covid-19 is having a more severe and sudden financial impact on our business than 9/11 and the 2009 financial crisis combined,” he said. In an emotional video address posted to Marriott International’s Twitter & LinkedIn account, Sorenson that “in most markets, our business is already running 75% below normal levels.” The current financial situation, he said, is more dire than the worst quarter ever in the company’s business. He added that the chain’s global business is running about 75 percent lower than normal, with 90% decline in the China hotels’ businesses; hundreds of hotels have closed, and some may never re-open.
Talking about the coronavirus as ‘something that have never been seen before’, Sorensen announced that, in light of the financial impact of Covid-19 on Marriot and the hotel industry, he would be giving up his salary for the rest of 2020 and that the Marriot top executive team would be taking a 50% pay cut to help the company steer through the challenging times. The world’s largest hotel brand will also reduce the salaries of senior executives by 50%.
Sorenson detailed various steps Marriott is taking to get past the crisis, including Marriott International:
- Suspended all non-essential travel for employees.
- Froze hiring “with the exception of a small number of mission-critical positions.”
- Sorenson and Marriott International Executive Chairman Bill Marriott Jr. will receive no salary for the rest of 2020, and the Marriott International executive team will take 50 percent pay cuts.
- Stopped all hotel initiatives, and suspended brand marketing and advertising.
“There is absolutely nothing worse than telling highly valued associates, people who are the very heart of this company, that their roles are being impacted because of events totally out of their control. I’ve never been more determined to see us through than I am at this moment,” said Sorenson in an emotional video.
Sorenson added that Marriott employees will be there to welcome back guests when the crisis is over, adding that “together we can and will overcome this, and we’ll thrive once again.”
