Activist investor Land & Buildings Investment Management LLC wants a seat on Marriott International Inc.'s (MAR) - Get Report board, the Wall Street Journal reported, citing sources familiar with the matter.
Marriott shares were up 1.85% to $121.78 on Friday.
Land & Buildings said the multinational hotel chain has too many brands and wants to see a narrower brand portfolio, among other changes.
The hedge fund thinks Marriott is a well-run company overall, but feels it mishandled the acquisition of Starwood Hotels & Resorts in 2016, the Journal said, citing sources. Land & Buildings feels Marriott didn't appropriately integrate Starwood's rewards system with Marriott's and kept too many brands in the process.
Marriott is still dealing with the aftermath of a massive data breach that sank the hotel chain's stock by more than 5% in one day in 2018. TheStreet reported at the time that the breach involved the Starwood guest reservation database and that personal details of around 327 million guests had been accessed from data going back to at least 2014.
Recently, Land & Buildings privately urged Marriott to consider reducing its 30-brand portfolio to focus on the fastest-growing brands and believes Marriott would improve by having a shareholder's perspective on the board, increasing dividends and buybacks, according to Journal sources.
Land & Buildings is known for aggressively pushing for change in real estate companies. The fund holds a small stake in Marriott and nominated its founder, Jonathan Litt, to Marriott's board earlier this year, according to Journal sources.
Marriott told the Journal Friday it was evaluating Litt's nomination and that it has a strong, diverse and independent board of directors.