How will the conflict between Marriott and Lim, which has reached a criminal investigation in Poland, affect other business partners of Marriott?

The Conflict

The conflict between Marriott International and the Lim Company became a legal disagreement and proceedings issued on behalf of Lim.

The associated legal matters became increasingly contentious with additional elements of financial record keeping, breach of information, and breach of contractual agreements, becoming part of proceedings.

There are fundamental issues regarding Marriott’s willingness, or lack of willingness as the case may be, to assist Lim to stem losses, generate alternative income and seek redress from the insuring of business losses.

Whether these are matters that will form part of the wider legal process is currently unconfirmed, but the overall circumstances are concerning to a number of differing parties.

The matter eventually became a formal criminal investigation and has come to the attention of the Polish Authorities.

The Effects of a Disagreement and Criminal Investigation

It is recognized in any corporate sector, not least the hospitality sector, that any form of disagreement is a matter requiring close scrutiny by partners to the company involved.

It is also a feature that any such disagreements, especially those which require legal recourse, will create unhelpful and unwelcome attention for the parties involved.

Marriott International, in their role of hotel operators, are a world leading organization and a vast array of partners are required to attend to their locations which number nearly 9,000.

To be facing legal proceedings, a criminal investigation and the Polish authorities is not a welcome situation for Marriott.

The effects could be far reaching, financially damaging and a strain on the worldwide reputation and brand of Marriott International.

A Number of Business Partners Could be Affected

The difficulties faced by Marriott, because of the conflict with Lim, could potentially affect each and every relationship with Marriott International.

There are the partners with whom Marriott form agreements with to ensure the successful day-to-day operational activities of their hospitality locations.

These franchisees, suppliers, sub-contractors, specialists and tradesmen might all be affected by a criminal investigation.

At the same time, it should be noted, that there are any number of essential professional advisers and consultants who are retained by Marriott International to help steer the corporate direction of Marriott International.

Albeit peripheral to the core running of the Marriott business, these professionals are equally important partners, contributing to the overall reputation and success of Marriott International.

Differing Professional Partners of Marriott International

Whilst the operational demands of running of a world leading hospitality group requires a certain range of partnerships, the corporate requirements of a company of the worldwide size and profile of Marriott are substantial and cannot be overlooked.

At a senior, more likely board level responsibility, Marriott International must ensure that legal, financial, regulatory and corporate responsibilities are addressed.

Similarly, the Marriott brand, its marketing, public relations, corporate relations, investor relations and future targets and development will require the support of a range of consultants and specialist advisors.

A company such as Marriott International, with revenues of over $20 billion, assets of nearly $25 billion, 8,500 locations and approximately 370,000 employees will need to ensure its consultants and specialist advisors are of the highest calibre.

Although distinct from operational activities, these consultants are equally important partners. Their confidence, support and responsibilities are essential.

Marriott International are quoted on the NASDAQ, S+P 500 and the London Stock Exchange. The responsibilities concurrent with such status add an additional level of advisors necessary. Their role to ensure Marriott navigate the regulatory environment that governs the corporate marketplace.

Effects on the Corporate Professional Partners of Marriott International 

The professional organizations behind the corporate body of Marriott International are an integral element of the successful corporate running of such a company.

Aside from the partnerships needed to ensure operational standards and performance, the corporate partners that are required are also essential, albeit for different reasons.

They will naturally become aware of any legal disagreements and criminal investigations.

Marriott might well be affected in terms of both the reputation and financial aspects of the business, however, damage to the confidence of their corporate partners could be equally, if not of greater concern.

A lack of confidence in the partnerships which ensure that Marriott can operate at the highest corporate standard will eventually filter through to the corporate partners that act for Marriot. Any damage or issues that affect those specific corporate partnerships would certainly be a serious concern at the highest level of Marriott International.

In direct relation to this, the investment community, partners at a primarily financial level, are amongst the most important partners Marriott need to pay attention to.

The daily trading of Marriott International stock in relation to performance, debt, financial statements and projections is extremely sensitive to any issues the group might face.

Conflict, legal matters, criminal investigations and specifically Polish government involvement could affect the investment performance of Marriott International and their projections for future expectations.

Marriott are unlikely to be very comfortable should their investment partners become concerned about any ongoing criminal investigations and their outcome.