Marriott CEO Arne Sorenson Speaks at Robert H. Smith School CEO@Smith Series
On April 26, the University of Maryland’s Robert H. Smith School of Business welcomed Arne Sorenson, CEO of Marriott Hotels, to speak as part of the school’s CEO@Smith speaker series. Sorenson heads a company that is poised to become the world’s largest hotel company following the acquisition of Starwood Hotels & Resorts — a move that now gives Mariott more access to middle-class demographics.
During the conversation, which was moderated by Smith School Dean Alex Triantis, Sorenson discussed how the hospitality game has changed in the wake of Airbnb, online travel agents Expedia and Priceline, Google, Amazon and Apple. The CEO believes that strengthening ties with customers is key to weathering the competition.
Sorenson said the biggest threat comes from an uncertain future where Google or Amazon decide to use their “nearly monopolistic power” in their spaces to essentially extract as big a “tax” as possible from businesses that depend on the Internet to connect with customers.
“They have these extraordinary technology platforms and the ability to monetize them in ways that are pretty profound,” Sorenson said. “Google can make sure they provide only (search) results that someone has paid them to show. And that’s not a world that is good for our business to be in.”
Sorenson also discussed the type of “old-school” skills that business leaders need to succeed, like strong communications skills and the desire to continue to learn and grow. He also got into the nitty gritty of the negotiations that went into acquiring Starwood and Marriott’s bidding war with China’s Anbang Insurance Group Co.
According to Sorenson, Marriott is still trying to figure out how to integrate Starwood’s 11 brands in the acquisition, saying that the biggest challenges ahead revolve around figuring out the senior leadership of the combined company and merging the technology, loyalty programs and brands of the two companies.
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Max Pulcini
Max Pulcini is a Philadelphia-based writer and reporter. He has an affinity for Philly sports teams, Super Smash Bros. and cured meats and cheeses. Max has written for Philadelphia-based publications such as Spirit News, Philadelphia City Paper, and Billy Penn, as well as national news outlets like The Daily Beast.
