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There is high rivalry in the industry since there are many established hotel chains, most of which are located in close proximity, and attract customers via competitive prices. Finally, power of suppliers is fairly high since prime locations are in limited supply, and typically very costly.
Further financial analysis also supports that the hotel industry is unfavorable. The industry currently underperforms the overall economy by 3.4% - the economic average is 5.9%, while the industry profitability is a poor 2.5%. However, Marriott is currently outperforming both, the industry and the economy, with an overall profitability of 8...
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