Marriott reported a 6.5 per cent increase in worldwide revenue per available room in its third-quarter results. Growth was stronger in the United States and Canada than in international markets. The hotel company also reported higher earnings and added rooms, while setting its full-year room-revenue growth outlook at 4.5 per cent to 5.0 per cent.
Marriott, the US hotel operator and franchisor, reported its third-quarter results on November 2. Its quarterly earnings and revenue increased from a year earlier.[1], [2]
Worldwide revenue per available room rose 6.5 per cent in constant currency. This measure spreads room revenue across available rooms, including those left empty. Growth reached 7.4 per cent in the United States and Canada and 4.4 per cent in international markets.[1]
Net income rose 9 per cent to 794 million dollars, while diluted earnings per share increased from 2.67 dollars to 3.04 dollars. Franchise and base management fees grew 13 per cent to 1.341 billion dollars. Marriott attributed that increase to co-branded credit-card fees, higher room revenue and rooms growth. Net interest expense rose from 194 million dollars to 219 million dollars as debt balances increased.[1]
The company added roughly 20,100 net rooms during the quarter, taking its system to nearly 1,834,000 rooms. More than 634,000 rooms were in its development pipeline. Management’s full-year outlook puts room-revenue growth at 4.5 per cent to 5.0 per cent, assuming that the current macroeconomic environment continues.[1]
