Marriott’s CFO and executive vice president of development reacts to the Federal Reserve’s first interest rate cut in mid-September, talks about development opportunities, and offers some career path wisdom.
BETHESDA, Md. – Renee Oberg has had a multifaceted career and encourages others, especially women, to do the same if they want to rise to the top. Breadth of experience may be more important than depth, she says.
“So, as is often the case, variety is the spice of life. And change – I think change is a good thing,” she told Hotel Investment Today.
See what Oberg had to say about the Fed’s first moves, the trajectory of her career, hot and cold markets, and more.
Transcript of full interview
Hello. I’m Jeff Weinstein, editor-in-chief of Hotel Investments Today, On the Money.
I’m pleased to be joined today by Reenie Oberg, Chief Financial Officer and Executive Vice President of Development for Marriott International. Reenie has been with Marriott since 1999. She served as CFO of the Ritz-Carlton and previously held various financial leadership positions in global financial development and asset management. Prior to joining Marriott, Reaney held various financial leadership positions at Sodexo, Sallie Mae, Goldman Sachs, and Chase Manhattan Bank. Reenie, it’s a pleasure to be with you today. Thank you for being here.
Leeny Oberg: Yeah, thanks for having me. I’m glad to meet you.
Jeffrey Weinstein: Thank you. Well, let’s jump right in. Yesterday was an interesting moment. We got the Fed to cut interest rates probably a little more than expected. They reached 50, which is great. I think everyone is happy and it seemed like a signal that we might get two more points this year and a whole point next year. What do you think about it? What do you think that means for the hotel industry, especially in terms of investment and M&A?
Oberg: Well, Jeff, as we came out of COVID-19, M&A activity and overall fundraising actually accelerated significantly. Now, certainly when it comes to certain types of loans, especially new construction in the United States, these high interest rates are definitely slowing down lending. So I think that’s going to help us continue to accelerate, which is great.
Although on a smaller scale, we have seen deals on the M&A side, or so-called bolt-on acquisitions, steadily pick up pace over the last few years. I think we should expect that to continue and maybe a little bit more. Interest rates are also on the decline.
Reenie Oberg
However, although on a smaller scale, we have seen deals on the M&A side, or so-called bolt-on acquisitions, steadily pick up pace over the last few years. I think we should expect that to continue and maybe increase a little bit. This is especially true when interest rates are falling.
Another interesting part concerns the hotel deal itself. And I think it’s clear that rates are going to go down, and perhaps having a clearer picture of rate trends will help hotels continue to grow their trading activity.
Weinstein: I think there are a lot of ambitious women in this industry who ultimately want to be in the C-suite. Talk about what you owe your success to today. And what advice do you have for other women looking to reach that level of success?
Oberg: Whether you’re a man or a woman, it’s probably pretty similar. And I think real-world success is, in many ways, a combination of hard work, perseverance, and some luck thrown into it. I also think it’s important to truly enjoy both the industry and the role you play. Above. I think it makes a huge difference if it’s clear that you really, really enjoy what you’re doing.
My advice will probably fall into several categories. One is to have as much diversity as possible in your role within the company. This means that even within the same field, such as finance, you can wear a variety of roles, with some supporting the business and others acting as a direct negotiator on deals. And I think breadth is just as important as depth. And I think it could have an even bigger impact on your career growth depending on whether you can actually take on cross-disciplinary roles.
So, as is often the case, variety is the spice of life. And change – I think change is a good thing.
Weinstein: As we progress through our careers, we all have those “aha” moments, those great moments where we continue to learn and still apply. Perhaps talk about a great learning experience that has become part of your daily routine.
Oberg: On that point, Jeff, I think the power of the team is really amazing, no matter how many times I watch it. What you see when you have a strong team and a collaborative team, whether it’s a crisis like a pandemic or a big deal like the Starwood acquisition, they do the basics. , effective team dynamics can make all the difference when it comes to actually achieving something special.
Try to have as much diversity as possible in your roles within your company. This means that even within the same field, such as finance, you can wear a variety of roles, with some supporting the business and others acting as a direct negotiator on deals. And I think breadth is just as important as depth.
Reenie Oberg
In my experience, watching a match come together can be one of the most powerful moments of a career. And for me, certainly, COVID-19 saw finance teams around the world dive into different parts of the business, collaborate, and be kind in a single weekend in March 2020. It was one of the things. You can completely switch gears from growth mode to sustainment mode, get a huge amount of work done quickly, and have a huge impact on your business. And it was all about teamwork.
Weinstein: We all talk about work and life balance, but while it’s easy to say, it’s not always easy to do. Talk about how you manage that. Like many other executives, you have a big job to do. Is work your life or…what are your tips for finding balance?
Oberg: Well, I’m not going to claim that I always do that. Well, that’s the first comment. I think the most important thing is to choose your location. I learned this classically at the start of my career. For me, I was single. I didn’t have any kids at the time so I was very focused and excited about growing my career and of course trying other things.
As my husband and I started raising a family and I was still really excited about the work I was doing, I had to start choosing my spot and the type of focus. For me, my focus was family, work, and frankly the outdoors, exercise, and finding time to be outdoors. I had other interests and a few things I really wanted to do, but they were further down my priority list. But I think by making sure that I’m trying to balance what’s most important to me, I’ve at least started to look balanced.
Weinstein: You play a role in the development of Marriott. What do you think about hot emerging markets, or conversely emerging markets that are cooling down a bit?
Oberg: Development is a really great part of the company to be a part of. Marriott has always focused on growth. In fact, we’ve focused on growth, including employee opportunities, new hotels around the world, experiences, and price points.
Therefore, this is why we have never rested on our laurels and in that way emerging markets have provided great opportunities. And if you think about whether it’s markets like Indonesia or India or Mexico, we’ve been there for a while, but with the acquisition of City Express, we’re kind of finding a whole new growth opportunity. I feel like it.
As my husband and I started raising a family and I was still really excited about the work I was doing, I had to start choosing my spot and the type of focus. For me, my focus was family, work, and frankly the outdoors, exercise, and finding time to be outdoors.
Today, we are present in 147 countries around the world and continue to grow. And I think the wide presence of both developed and emerging markets is what makes the development space so interesting. And if you think about how we’ve taken Chinese brands, for example, and started full-service brands in big cities, and now we’re seeing mid-sized brands in Greater China achieve incredible growth. Brands – This is a great example of how our broad portfolio of brands has expanded our growth opportunities.
Weinstein: So, speaking of that breathing, the comment we hear all the time from developers and the community is, “How many more brands do we need?” There are many. Hilton is expanding its portfolio and Accor claims it is approaching 40 or more. What do owners do when they learn that they are constantly hearing about new brands and may feel that the brand is becoming too thin or that there are too many competitors on the block? What kind of reaction do you get? What have you been listening to lately?
Oberg: So we’ve always listened carefully to our stakeholders, including both customers and owners. For example, Studio Res is a brand we started as a result of conversations with owners. The owners really wanted to start a brand that fit into what they saw as a highly growing segment of the expansion industry. Stay in a medium-sized space. And our experience and success in our long stay made us the perfect place to develop a new brand. And we’re very excited about both the autograph session and the hotel that’s under construction.
Therefore, we believe this is an ongoing dialogue and are constantly working to ensure that across Marriott Bonvoy’s 30+ brands, each offers a unique value proposition to both customers at different price points and experiences. I’m trying. But also because of the investments (both horizon and parameters) of our owners. And while the reality of intense competition and the ever-present need to drive the right demand for the right types of products, we strive to balance the various constituencies to ensure that Marriott Bonvoy is ultimately satisfied. I’m trying to take it. is growing and adding more and more opportunities not only for owners and franchisees, but also for customers and employees.
Weinstein: Leeny Oberg, CFO and Vice President of Development, Marriott, thank you for taking the time to speak with us today. appreciate. I look forward to seeing you soon.
Oberg: That’s for sure. Thank you very much, Jeff. It was nice talking to you.
