Starwood Hotels & Resorts Worldwide, Inc, and Marriott International provide hospitality services. Starwood Hotels’ well-known brands include St. Regis, The Luxury Collection, W Hotels, Westin Hotels & Resorts, Le Meridien, Sheraton Hotels & Resorts, Four Points by Sheraton, Aloft by W Hotels, and Element by Westin. Marriott also owns or manages properties with recognizable brand names, such as Marriott Hotels & Resorts, Ritz-Carlton Hotel Company and Destination Club, Bulgari Hotels & Resorts, Marriott ExecuStay, Marriott Executive Apartments, Marriott Vacation Club, Grand Residences by Marriott, Spring Hill Suites by Marriott, Renaissance Hotels & Resorts, AC Hotels by Marriott, JW Marriott Hotels & Resorts, EDITION Hotels, Autograph Collection, Courtyard by Marriott, Residence Inn by Marriott, Fairfield Inn & Suites by Marriott, TownePlace Suites by Marriott, and Marriott Conference Centers.
On its balance sheet, Starwood Hotels & Resorts includes brands of $313 million, or 3.3 percent of total assets. Marriott International, however, does not list brands among its intangible assets. What principles of accounting for intangibles require Starwood to record brands as an asset while Marriott does not? How do these differences in accounting for brands generally affect the net income and return on assets of these two competitors?

  • CreatedMarch 26, 2014
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