MARRIOTT LAMENTATION 187: Minor hiccups and gut-wrenching Marriott relationship results in asset-light bellyache

The Bangkok Post recently reported that Minor International is now employing an 'asset-light strategy'.?"Tourism is coming on quite strong and we are able to increase our rates substantially," said Dillip Rajakarier, group chief executive and chief executive of Minor Hotels.?Using an asset-light strategy to acquire new partners and management contracts, the company expects its asset-light hotel rooms in 2026 to reach 40% of its total portfolio, increasing from 18%.?Minor also wants to expand its food brands abroad using the asset-light model

William Heinecke, Minor Chairman and founder, initially announced an?asset-light?strategy in 2022, as a means of stabalising growth. "We will continue to look for expansion opportunity via an asset-light business model". This?follows?in the footsteps of Heinecke's long-term?idol and partner in Thailand,?Marriott International, which?has been following such a strategy since the mid-1990s.?

In what has now turned into?a narcissistic love-hate relationship, Minor lost its recent lawsuit against Marriott but refuses to give up the fight.?Rajakarier described?the court’s decision as “a temporary setback” and that it will continue to pursue the case until it reaches “a fair outcome”.?During a?2019 meeting, Arne Sorenson had some choice words to say about the Minor relationship. He knew that Heinecke's intention was to use the Marriott brand to his advantage but only for as long as necessary

Previously, Rajakarier had?claimed that Minor was different to the other major hospitality players. "For us, our strategy is not asset heavy or asset light. We call it asset right...? For us, it’s a balance between asset light and asset heavy. That’s been very successful for us over the years. We will continue in that strategy.”

Would Minor opt?to follow the?Marriott business model in the future? Rajakarier said no.?“I think sometimes the mega brands, they lose the personalization, they lose the customer touch, they lose the guest allure, they also lose the soft touch as well, which is their asset, which is what’s creating the value for these companies,” he said of those pursuits.

He stated?that Marriott’s 30+ brands are "totally confusing"...? We don’t want to be the biggest hotel company, but what we want to be is the best hotel company in the world,?he said. “I always say most of the companies, they don’t die of starvation, they die of indigestion, which means they are unable to transition from one brand to another brand. When you do a consolidation, it’s not easy. I really hope some of these big hotel chains will not die of indigestion."

In order to compete with the major players Heinecke and Rajakarier know?that asset-light is where the easy profit?lies. Asset-light means hospitality-light, service-light, ethics-light. Asset-light is heavy on greed and corruption. Like Marriott, money is Minor's major bent. Hotel guests?should prepare for severe?bouts of?dyspepsia

MARRIOTT LAMENTATIONS 177: Marriott's third party alliances (Extracts)

The global expansion of Minor International's?hotel, food and lifestyle?business continues apace - but, as with Marriott, at what cost?to integrity, standards?and humankind? Founded by US born William Heinecke in 1967, Minor?today owns, operates, oversees and invests in a portfolio of over 500 hotels, resorts and serviced suites spanning 53+?countries and boasting a host?of brands, including Avani, NH Collection, Elewana, Oaks, Tivoli and, of course, the flagship Anantara.

Minor is one of Thailand's largest and most powerful corporations, yet?one of its least admired. Minor's status and influence undoubtedly?stems?from historically?close ties with the Thai royal family and consequent political alliances.

The relationship with Marriott goes back?decades.?The illegal St Regis Bangkok, developed on land leased to Minor by His Majesty the King of Thailand, continues to be managed by Marriott, though under the dictatorial finger?of?Heinecke who actually resides in the same building.?The JW Marriott Phuket has been the subject of a long-running lawsuit: Minor v Marriott

"We know how to drive the brands" said Heinecke in a TV interview. That is undoubtedly the case, driving them ultimately, especially those?of other chains, over a cliff. ("For guests who knew this St Regis in its heydey, staying today is just a sad experience. The name is the same, but once a hot girl, now is a mummified corpse" - Flyertalk, St Regis Bangkok, Marriott elite guest, 30th Nov?2023)

MARRIOTT LAMENTATIONS 123:?"Marriott's Minor Misfortune" (Extracts)

Heinecke has a history of unpleasant disputes?with business partners, including the founder of Oaks?Australia, Brett Pointon. The CEO of another international?group described him as "an aggressive and growth oriented businessman" adding that the NH hotel transaction had been peppered with conflict. Even more recently, Jeremy King, joint founder of Corbin and King, told customers that his company was "under siege" from its major investor.?Corbin and King was placed into administration by Minor in January after a serious relational?breakdown; King then lost control of the group which?Minor has since rebranded as Wolseley Hospitality Group. "I thought as people in hospitality, they would understand how hospitality might work… I mean, they're b******s" (Jeremy King).

According to the Royal Thai Police, it is Heinecke that stumped up the bribery money (via a Minor subsidiary) to have me bullied, interrogated and chased out of Thailand for daring to challenge?Minor/Starwood/Marriott corruption in public. (Of course, this was a serious FCPA violation, done in conjunction with Starwood/Marriott personnel, but?Thai and US regulators have consistently ignored reports?of the incident). The 'punishment' continues to this day

MARRIOTT LAMENTATIONS 85: "Minor and?Marriott; Hospitality Hostility; Partners and Enemies" (Extracts)

Minor International?CEO,?Dillip Rajakarier, clearly out of his depth,?got more than he bargained for recently whilst addressing staff at Brasseri Zedel in London. After a bitter battle with respected?restaurateur?Jeremy King, Minor has just completed its seizure?of UK fine dining group, Corbin and King.

“He got it wrong from the start,” said one employee. “He kept referring to us as a brand...” According to Jay Rayner in?The Guardian, "the meeting became increasingly fractious... Similar town hall meetings planned for the other restaurants were swiftly cancelled. It seemed that Rajakarier had underestimated the loyalty of the staff to those founders, Chris Corbin and Jeremy King"

Minor?has moved into dangerous territory and may have bitten off more than it can chew. After all, Minor's culinary roots are in poor quality, expensive fast food. Previous cheap attempts to gourmandise its product?have proved?insipid. Quality produce,?product or?service are not on the Minor menu;?greed, growth and profit are. Rayner, one of the UK's foremost?food critics, has already seen through the Minor deal and?writes of "the?faceless corporatisation of hospitality which has little to do with being hospitable and everything to do with profit above all else." Stephen Fry, actor, author and comedian,?tweeted: “Oh bol--cks. Is it always going to be a world where the good guys lose and the greedy, soulless and mean win out?” - a comment well-suited?to Marriott?too

Minor's flagship hotel, the illegal St Regis?Bangkok, continues to be corruptly managed and operated?by Marriott.?Marriott inherited the contract after its illicit 2016?merger with Starwood. Both companies persist in their cruel?retaliation against a whistleblower.?Displaying contempt for FCPA principles, Marriott's tactical lobbying of US regulatory bodies has?reaped significant?reward

In his 'Trumpian' book, "The Entrepreneur: 25 Golden Rules for the Global Business Manager", 72?yr old William Heinecke, Minor Chairman/Founder, advises: "Never get too big for your boots". Unusually wise (albeit unheeded) words

MARRIOTT LAMENTATIONS?13: "KYC Failure at the St Regis Bangkok (Extracts)

The unique ownership and management structure within the hotel industry makes for complex corporate governance issues. KYC checks can reduce business risk and protect an organisation from the likes of fraud, bribery, money-laundering, human-rights violations and other forms of corruption

Relationships between owner and operator can be fragile. Former CEO Arne Sorenson informed me that Marriott has no control whatsoever over hotel owners/licensees (suggesting a lack of regulatory rigour and contractual issues). Yet Yibing Mao (ex Marriott APAC legal counsel, now President Greater China) writes about selecting business partners who share values similar to Marriott. "If there’s a clash, then some hard decisions would have to be made"...?

MARRIOTT LAMENTATIONS 20: "The 2 Ms and the 3 Cs - a harmful cocktail" (Extracts)

The St Regis Hotel Bangkok is built?on corruption, collusion and conspiracy

Minor International, the investor, leases the?building from the Thai King,?a Minor stockholder.?Starwood (now Marriott) conspired with Minor?to operate?the illegal hotel. The EIA was corrupted.?The Privy Purse Bureau acted illicitly.?Local authority and government officials were bribed.?Land?borrowed from the former Four Seasons Hotel across the road provided the St Regis with its FAR/green quota requirements.?A construction?permit was only issued post-completion after?illegal alterations had been?made to the original design.?The hotel opened without fire certification/public liability insurance.?Accused of defamation, a?whistle-blower - ("moi"!) - was subjected to repeated police interrogation. By their own admission, the police were bribed?by Minor and Starwood personnel. While?overseas, an arrest warrant?was issued; still fearing for his safety he has not returned

Starwood GC Kenneth Siegel?ignored?legal correspondence, including a massive community claim. Starwood CEO, Frits van Paasschen, was sacked. Bruce Duncan, former Starwood Chairman and disgraced Marriott director, was a key player in the conspiracy. Craig S Smith, ex Marriott Group President International Division, who suddenly "retired" in February 2023, was another leading conspirator. Due diligence failures during the 2016 merger mean?that the entire problem continues to hang round Marriott's neck. Marriott CEO Anthony Capuano and Rena H Reiss, Executive Vice President and General Counsel, and the entire Marriott Board of Directors maintain the deception and cover-up...

MARRIOTT LAMENTATIONS 59: "Asset-Light, Asset-Sleight"?(Extracts)

Marriott International operates an?asset-light business model. However, the?strategy may have gone?a tad too far

* Marriott has created a system of management and franchise contracts?which basically hand?over?brand asset control to the hotel owner

*?Over-exuberant franchising has led to poor quality control and brand standard negligence

*?Successful brand governance requires well-trained, loyal associates who believe in the brand; a?growing number have lost?faith because the brand has been prostituted.?Marriott still claims to?"take care of associates?[so that] they will take care of the?customers" but these are fake?words. Hotel guests and associates are viewed?as?fodder with which to feed the hungry lion. Marriott has no?interest?in human beings, only bums-in-beds

*?Once a key asset, integrity has become?the fantasyland?of professional hypocrites, a key?constituent in a giant cobweb of spin directed towards associates, guests, regulators and the financial markets. The amoral?mindset?governing the Marriott organisation has no interest whatsoever in ethical business practice

Moralising incessantly on?sustainability, executives appear oblivious to?the irony?that Marriott itself is ultimately unsustainable?within its?current?business model. The entire Marriott operation is a fraud and not in compliance

The sudden "retirement"?or resignation of certain leading executive heavy-weights has been?a surprise to many. These Marriott long-termers will have observed the evolution of?Marriott's "asset-light" sleight.?Despite one leaving for "dubitable" reasons, I suspect the rest may well have?"seen the light" and opted to take immediate flight from an?empire built on sand

John Shepherd (Marriott, Minor, EY victim and hunger striker)

FOOTNOTE:?

* The?"Bespoke Collection"?contains previously published short articles (some now edited) which, with clarity and brevity in mind,?offer?a snapshot?of how the St Regis Bangkok fraud was engineered and continues to be sustained alongside other related issues regarding?Marriott, Minor, EY and hotel industry corruption?

The St Regis Bangkok?conspiracy defines?the amoral and perilous?state of today's global brand-driven hotel industry, and how?multinational hospitality corporations, bent?on world domination, behave?within?a seemingly unregulated industry. Marriott, an industry bellwether, continues to?hide?behind the security of local corruption, expanding its?global footprint with ease, maligning communities and individuals in the process

*?The?Marriott Board?and senior executives?continue?to receive correspondence on a weekly basis but rigidly maintain?their?silence