David Marriott to Oversee Hotel Chain's Key Markets

New Position Stirs Speculation About Succession Plan

Marriott International has tapped the youngest son of chief executive Bill Marriott for a key position overseeing hotel operations in some of the lodging chain's most critical markets, including New York City, raising more speculation about his future role in the company.

The careers of Marriott offspring prompt extensive tea leaf reading at the firm's Bethesda headquarters and throughout the industry, but the speculation has become particularly intense around David Marriott, who is 34 and viewed as the family member most likely to perhaps one day head up the company.

Although Bill Marriott, who recently turned 76, says he has no plans to retire soon, that hasn't stopped rampant speculation about his successor, especially because in the company's 81 years there have been only two chief executives, both with the last name Marriott. The topic is so sensitive that most people in the hotel industry will not talk publicly about it.

Right now, the smart money is on chief financial officer Arne Sorenson to succeed Bill Marriott. Sorenson, 49, is widely respected in the industry and on Wall Street.

"I don't think [Wall Street] is pining away to have another Marriott run the company," said Robert LaFleur, an analyst with Susquehanna Financial Group. "It's not enough to just have the Marriott name. He's got to have a record of accomplishment and have proved himself to the investment community."

The new job offers David Marriott the opportunity to continue building that kind of record. He has risen quickly at the company and has impressed people with his father's personal touch and listening ability. He most recently led global sales, completing a radical reorganization of group and corporate bookings.

In his new job, he will be the company's point man on full-service hotels in New York, Philadelphia, Baltimore and in a couple of smaller New Jersey cities. He will get experience in all facets of hotel operations, including dealing with demanding owners and motivating general managers to hit their profitability expectations. One hotel he'll be responsible for is the Marriott Marquis in Times Square. It is the company's most profitable property, or as Bill Marriott puts it, "It's a big pumper."

Bill Marriott said his son's move was an example of what the company is known for in the industry: moving around executives to give them experience in all facets of the business. "We do this with all our high-potential executives," he said.

Asked if the company is grooming David Marriott for a top job, Bill Marriott demurred graciously. Asked the same question, David Marriott said, "As long as I continue to do well, new opportunities will be presented, and we'll go from there."

David Marriott became the focus of successor speculation after his older brother John left the company in 2005, giving up his job as head of lodging to run the family's private hotel investments. Another brother, Stephen, has a rare muscular disorder that has left him hearing-impaired and blind, and he works on culture issues and special events for the hotel chain. Their sister, Debbie, works on government affairs.

David Marriott is taking the new position during a challenging time for hotels. The industry has retracted significantly, in line with the country's economic slowdown. Last week, Bill Marriott lowered the company's forecast for second-quarter room-revenue growth. David Grissen, Marriott executive vice president of the Eastern region, said David Marriott's name and his connections within corporate America will be an asset to a region of hotels that count on a lot of group bookings.

"David brings a unique perspective," Grissen said. "I can open doors with my title. David opens more doors with a title and a last name." Grissen said that when he calls a meeting planner and asks for a meeting, "you get a different reaction when you say you are bringing David Marriott along."

The reaction to David Marriott is equally positive in the hotels, where employees have treated the arrival of Bill Marriott like a visit from the Beatles. They line up to shake his hand. One over-eager dishwasher was so pumped about shaking Bill Marriott's hand some time ago that he bit off part of his finger trying to pull off his rubber gloves with his teeth.

"The associates respond to David just like Mr. Marriott," Grissen said. "He's just a natural."

David Marriott starts his new job in September. Bill Marriott said he won't give his son any different advice than he would any other executive in his position. "I tell him to listen to your people, get to know them really well," Bill Marriott said. "You have to know your people. You are only as good as your people."