WASHINGTON, DC— The hits just keep on coming against Marriott International, with the latest barrage being leveled at the mega hotel company’s accounting/financial reporting practices. As reported in The New York Times, Wall Street analysts and other market-watchers are criticizing Marriott’s reporting practices as they apply to an off-balance-sheet entity operating under the name of CBM Joint Venture LLC. As outlined, Marriott is a co-owner (along with Host Marriott) of the entity, which is said to own and operate 120 hotels under the Courtyard by Marriott banner. Specifically called into question was the percentage of Marriott’s pre-tax earnings derived through the aforementioned entity, as well as the overall financial viability of CBM Joint Venture LLC. While James Chanos— president of the New York City-based investment firm Kynikos Associates— reportedly charged the entity “is by technical definitions insolvent,” Marriott VP – Finance/Principal Accounting Officer Michael Green shot back: “The joint venture as a whole is generating enough cash flow to service its debt and its operating expenses… so it’s solvent.” Apparently, much of the angst in the financial markets is spurred by Marriott’s perceived lack of reporting transparency. To this end, Bear, Stearns analyst Jason Ader was cited as saying: “I am concerned that we don’t know what’s really going on behind the financial statements of the joint venture.” Calls placed to Marriott International were so far unreturned. However, it’s expected Host Marriott is likely to address and clarify some questions pertaining to its involvement in this particular venture— as well as its overall relationship with Marriott International itself— during the course of an earnings conference call this coming Wednesday morning. SOURCE: The New York Times