Marriott International has reported fourth quarter 2016 results, the first since the completion of its acquisition of Starwood Hotels & Resorts.
In the quarter the combined company reported net income of $244 million, a 21 per cent increase over 2015 fourth quarter net income of $202 million.
Reported diluted earnings per share stood at $0.62 in the quarter, a 19 per cent decrease from diluted EPS of $0.77 in the year-ago quarter.
Revenue grew to $5.46 billion from $3.71 billion, reflecting the growth in size of the company.
Arne Sorenson, president and chief executive officer of Marriott International, said: “The company delivered record high fee revenues in 2016, boosted by significant unit growth, RevPAR improvement, outstanding property-level margin gains and the acquisition of Starwood Hotels & Resorts.
“We added 11 leading brands to our portfolio as a result of the acquisition and welcomed the 6,000th hotel to our system.
“Together with owners and franchisees, Marriott and Starwood added more than 68,000 rooms during the year and, despite a tightening credit market, drove our pipeline of hotels under development to more than 420,000 rooms.”
Fourth quarter worldwide incentive management fees increased to $149 million compared to $81 million in the year-ago quarter.
The $68 million increase largely reflects Legacy-Starwood fees in the quarter.
Merger-related costs and charges totalled $136 million in the fourth quarter compared to none in the year-ago quarter.
Included in the merger-related costs and charges are $55 million of severance and retention costs, $59 million of integration costs and $22 million of transaction costs.
Sorenson added: “Looking ahead, we’ve never been more optimistic about our long-term prospects.
“Our expected new rooms growth for 2017 remains healthy, customers love our hotels and loyalty programs, and owners and franchisees prefer our portfolio of brands more than ever.
“Around the globe, Marriott brands represent nearly one in four hotels under construction, and one in three hotels under construction in North America.
“Our strategy of managing and franchising hotels under solid, long-term agreements is proven.
“Over the years, we’ve shown that this business model delivers meaningful growth in the number and variety of choices for our guests globally, while generating strong sustainable cash flow.”