Strong global economy buoys Marriott in first quarter

Strong global economy buoys Marriott in first quarter

Marriott International has reported a first quarter net income of $398 million, a seven per cent increase from the prior year results.

First quarter adjusted net income totalled $487 million, a 30 per cent increase over the prior year adjusted results.

The hotel giant also reported that diluted earnings per share totalled $1.09 for the first three months of the financial year, a 15 per cent increase from prior year results.

First quarter adjusted diluted earnings per share totalled $1.34, a 40 per cent increase over the first quarter of 2017 adjusted results. 

Arne Sorenson, president and chief executive officer of Marriott International, said: “Worldwide constant dollar RevPAR increased 3.6 per cent, exceeding the high end of our expectations for the first quarter and reflecting solid economic growth around the world. 

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“Given improving demand fundamentals, we have increased our expectations for full year 2018 worldwide constant dollar RevPAR growth to three-to-four per cent, a 1.5 percentage point increase over the mid-point of our prior guidance.

“Our development pipeline reached a new record of nearly 465,000 rooms and we remain on track to achieve worldwide room additions of 5.5 to six percent, net of deletions, for full year 2018. 

“In the first quarter, we signed contracts for nearly 20,000 rooms, with nearly half of those rooms in the luxury and upper upscale tiers. 

“In fact, according to STR, the number of luxury and upper-upscale rooms in our pipeline at the end of the first quarter exceeded that of our next three global competitors combined.”

Adjusted earnings before interest, taxes, depreciation and amortisation at Marriott totalled $770 million in the quarter, an eight per cent increase over the first quarter 2017 adjusted EBITDA.

Marriott repurchased 5.6 million shares of the company’s common stock for $782 million during the first quarter.

Sorenson added: “The integration of Starwood is going well. 

“Last month, we announced that our loyalty programs will be unified in August 2018, with all of our properties appearing on both Marriott and Starwood websites and apps at that time. 

“Our members are excited about the enhanced benefits that will be offered under the unified loyalty programs.

“We remain focused on delivering outstanding profit growth, while maximising shareholder returns.”