Marriott International reports first quarter 2018 results
Marriott International, Inc. (NASDAQ: MAR) today reported first quarter 2018 results. |
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Marriott International reports first quarter 2018 results
Marriott International, Inc. (NASDAQ: MAR) today reported first quarter 2018 results. |
Category: Worldwide - Industry economy -
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This is a press release selected by our editorial committee and published online for free on 2018-05-09
HIGHLIGHTS - First quarter reported diluted EPS totaled $1.09, a 15 percent increase from prior year results. First quarter adjusted diluted EPS totaled $1.34, a 40 percent increase over first quarter 2017 adjusted results. Adjusted results exclude merger-related adjustments,cost reimbursement revenue and reimbursed expenses. Adjusted results for the first quarter of 2018 also exclude adjustments to the provision for income taxes and the Avendra gain;
- First quarter 2018 comparable systemwide constant dollar RevPAR rose 3.6 percent worldwide, 7.5 percent outside North America and 2.0 percent in North America;
- The company added nearly 15,000 rooms during the first quarter, including roughly 1,600 rooms converted from competitor brands and approximately 5,800 rooms in international markets;
- At quarter-end, Marriott’s worldwide development pipeline increased to more than 2,700 hotels and nearly 465,000 rooms, including roughly 34,000 rooms approved, but not yet subject to signed contracts;
- First quarter reported net income totaled $398 million, a 7 percent increase from prior year results. First quarter adjusted net income totaled $487 million, a 30 percent increase over prior year adjusted results;
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $770 million in the quarter, an 8 percent increase over first quarter 2017 adjusted EBITDA;
- Marriott repurchased 5.6 million shares of the company’s common stock for $782 million during the first quarter. Year-to-date through May 8, the company has repurchased 7.9 million shares for $1.1 billion.
Marriott International, Inc. (NASDAQ: MAR) today reported first quarter 2018 results.Arne M. Sorenson, president and chief executive officer of Marriott International, said,
“Worldwide constant dollar RevPAR increased 3.6 percent, exceeding the high end of our expectations for the first quarter and reflecting solid economic growth around the world. Given improving demand fundamentals, we have increased our expectations for full year 2018 worldwide constant dollar RevPAR growth to 3 to 4 percent, 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 6 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.
“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 maximizing shareholder returns. Year-to-date through May 8, we have already returned $1.2 billion to shareholders through dividends and share repurchases and believe we could return at least $3.0 billion in 2018.”First Quarter 2018 ResultsIn the 2018 first quarter, the company adopted Accounting Standards Update 2014-09. Please see the “Accounting Standards Update” section of this release for more information.
Marriott reported net income totaled $398 million in the 2018 first quarter, a 7 percent increase from 2017 first quarter net income of $371 million. Reported diluted earnings per share (EPS) was $1.09 in the quarter, a 15 percent increase from diluted EPS of $0.95 in the year-ago quarter.
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