Marriott Restructuring

Marriott management should put the fears of bondholders to rest by making sure that they do indeed manage to pay off the interest payments, and later on, the maturity amounts. Marriott International, in particular, should play an active part in helping Host Marriott service its debts and liabilities. Although the main purpose of a spin-off is to warrant different divisions in a solitary firm independent management control over itself, Host Marriott is still for the most part the responsibility of Marriott International, the debt-free older brother. Whatever happens to Host Marriott nonetheless affects the very same shareholders of Marriott International. In that sense, it is also a loss on the part of the owners of Marriott International if Host Marriott goes under. More so, it can also be reasonably ascertained that if Host Marriott falls, Marriott International's managing business would also be affected by the loss of Host Marriott's hard assets (hotels, motels, etc.). The credit line provided by Marriott International could be a powerful tool in helping Host Marriott get back on its feet. …