Marriott International, Inc. (MAR / NYSE) today reported net income of $89 million for its 1998 first quarter ended March 27, an increase of 29 percent over
$69 million in the corresponding 1997 quarter.
The company was spun off, on a tax-free basis, to shareholders of the former Marriott International, Inc. (subsequently renamed Sodexho Marriott Services, Inc.) on March 27, 1998. Shareholders of record on that date received one share of the company`s common stock and one share of its Class A common stock for each share owned.
Pro forma diluted earnings per share for the 1998 first quarter was 33 cents, up 27 percent from 26 cents in the preceding year. Sales were $2.2 billion, an increase of 15 percent compared to the 1997 first quarter.
J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said that the company is off to a strong start, and has excellent growth prospects for 1998 and beyond.
“The U.S. lodging industry remains very robust,” Mr. Marriott said, “and Marriott Lodging continues to set the pace in terms of both REVPAR growth and profitability. Our senior living and distribution services businesses also performed well in the 1998 first quarter. We expect to post outstanding operating results in this inaugural year for our new public company.
“We have set aggressive growth targets for each of our businesses,” Mr. Marriott continued, “and we expect to invest over $1 billion annually in growth opportunities. Our new project pipeline is steadily expanding, and we now have more than 65,000 hotel rooms and 100 senior living communities under development.”