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Marriott International, Inc. (MAR), and Hyatt Hotels Corporation (H) are two major owners and managers of lodging and resort properties in the United States. Abstracted
Marriott International, Inc. (MAR), and Hyatt Hotels Corporation (H) are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Marriott has a higher return on total assets and a higher return on stockholders' equity compared to Hyatt. 2. Hyatt's weaker performance relative to Marriott's appears to be due to its weak earnings relative to its debt level. Hyatt has less leverage than Marriott. 3. The times interest earned ratio shows that Hyatt covers its interest charges better than Marriott; however, both companies do not have sufficient coverage. 4. Hyatt's weak earnings and low debt levels are affecting the company's ability to earn returns for stockholders
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