Marriott International Reports Second-Quarter Results
Thursday July 31st, 2014 - 9:33AM XB
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BETHESDA, MD—Marriott International, Inc. reported its second-quarter results with a net income totaling $192 million, a 7% increase compared to Q2 2013 net income.
For the 2014 second quarter, RevPAR for worldwide comparable systemwide properties increased 5.8%. In North America, comparable systemwide RevPAR increased 6.0% in the second quarter of 2014, including a 3.7% increase in average daily rate. RevPAR for comparable systemwide North American full-service hotels increased 5.3% with a 3.5% increase in average daily rate. RevPAR for comparable systemwide North American limited-service hotels increased 6.8% in the second quarter with a 4.1% increase in average daily rate.
Arne M. Sorenson, president and CEO of Marriott International, said, “Results in the quarter exceeded our expectations as worldwide RevPAR increased nearly 6%. In North America, strong transient demand drove RevPAR higher and room rates rose nearly 4%.”
Sorenson added, “With strong franchisee and owner demand for our brands, we are on pace to have another record development year in 2014 with contracts for roughly 295 hotels with nearly 46,000 rooms already signed, or nearly a dozen hotels per week, and well ahead of our 2013 first half signings pace. At the end of the second quarter, our development pipeline reached a record 215,000 rooms.”
Looking ahead, Sorenson is bullish on the remainder of 2014. “The strong RevPAR growth in the second quarter combined with very strong group bookings for the third quarter give us the confidence to increase our full year 2014 North American and worldwide RevPAR growth guidance to 5 to 7%,” he said. “We are also increasing our expectations for gross room additions to 7%, 6% net, based on strong development interest in our brands. Through the first two quarters, we have returned $766 million to our shareholders through dividends and share repurchases and are on pace to return $1.35 billion to $1.6 billion to shareholders for the full year.”
Further accelerating its growth in the luxury and lifestyle space, Marriott International announced a few weeks ago that the 3,400-room Atlantis, Paradise Island will be joining the Autograph Collection later this year. “The Autograph Collection is just one brand in our luxury and lifestyle portfolio catering to next generation travelers, a fast growing customer segment,” said Sorenson. “Representing nearly 30% of our current development pipeline, we expect to increase our room distribution of these luxury and lifestyle brands by 50% over the next few years.”
Tags: Marriott International • Hospitality • Brands • Quarterly Results •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.