Marriott Reports Q3 Results

BETHESDA, MD—Marriott International, which closed its acquisition of Starwood Hotels & Resorts Worldwide Sept. 23, reported third-quarter results showing diluted earnings per share totaled 26 cents, a 67% decrease over prior-year results.

Adjusted Q3 results exclude merger-related costs and eight days of Starwood Hotels & Resorts Worldwide’s results in the quarter.

On a pro forma basis reflecting the performance for both companies for the three months ended Sept. 30, North American comparable systemwide constant dollar RevPAR rose 2.6%, while worldwide comparable systemwide constant dollar RevPAR rose 2.2%.

Arne Sorenson, president/CEO, Marriott International, said, “Looking forward to 2017, we expect systemwide constant dollar RevPAR for the combined portfolio will be flat to up 2% in North America, outside North America and worldwide.”

During the three-month period, Marriott and Starwood combined added more than 17,600 rooms, including approximately 1,600 rooms converted from competitor brands and nearly 8,600 rooms in international markets.

At the end of Q3, Marriott’s worldwide development pipeline increased to nearly 420,000 rooms, including more than 46,000 rooms approved, but not yet subject to signed contracts. The development pipeline for Legacy-Starwood (pre-acquisition) brands alone totaled nearly 130,000 rooms, including roughly 12,000 rooms approved, but not yet subject to signed contracts.

At quarter’s end, the company had nearly 1.6 million rooms open or in the development pipeline.

Third-quarter reported net income totaled $70 million, a 67% decrease over prior-year results. Third-quarter adjusted net income totaled $235 million, a 12% increase over prior-year results.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $474 million in the quarter, a 10% increase over third-quarter 2015 adjusted EBITDA.