The FINANCIAL — Marriott International, Inc. reported third quarter 2013 results. Third quarter 2013 net income totaled $160 million, a 12 percent increase compared to third quarter 2012 net income. Diluted earnings per share (EPS) totaled $0.52, an 18 percent increase from diluted EPS in the year-ago quarter. On July 31, 2013, the company forecasted third quarter diluted EPS of $0.42 to $0.46.
“We had a solid quarter with worldwide REVPAR up nearly 5 percent year-over-year. Short-term group business picked up in North America and occupancy rates reached nearly 75 percent worldwide. Room rates moved higher, in part due to an improving mix of business, contributing about three-quarters of the REVPAR increase in the quarter, and the number of company-operated and franchised rooms in our portfolio rose 4 percent year-over-year," Arne M. Sorenson, president and chief executive officer of Marriott International, said.
“Owner demand for our brands continues to be robust. Our development pipeline increased for the fifth straight quarter and we’re on track to sign a record number of rooms in 2013. In Asia, we expect to open, on average, one hotel every eight days through 2016. In the fourth quarter alone, we expect to open the JW Marriott Hotel New Delhi Aerocity, the Tokyo Marriott, The Ritz-Carlton Chengdu, The Ritz-Carlton Tianjin and The Ritz-Carlton Bangalore."
“In the five months since we announced that we were importing the AC Hotels brand to the Americas, we already have 15 AC Hotels signed or approved for development and are in discussions for a few dozen more. In India, where we are rolling out our Fairfield brand specifically tailored for the local market, developers were so impressed with the brand that we had twelve signed contracts before the brand launched. The first of these Fairfields opened just a few weeks ago in Bangalore to great reviews."
“For 2014, we expect North America systemwide REVPAR and worldwide systemwide REVPAR to increase 4 to 6 percent. Group revenue booking pace for 2014 North American group business improved in the third quarter and is now up over 4 percent compared to up 2 percent a quarter ago. Group revenue booked in the 2013 third quarter for calendar 2014 was up 14 percent compared to group revenue booked for calendar 2013 in the year-ago quarter. Given our strong development pipeline, unit growth should accelerate in 2014 as our global system of rooms is expected to expand by approximately 5 percent gross, or 3 1/2 to 4 percent net.”
For the 2013 third quarter, REVPAR for worldwide comparable systemwide properties increased 4.8 percent (a 4.7 percent increase using actual dollars).
In North America, comparable systemwide REVPAR increased 5.2 percent in the third quarter of 2013, including a 3.9 percent increase in average daily rate. REVPAR for comparable systemwide North American full-service and luxury hotels (including Marriott Hotels, The Ritz-Carlton, Renaissance Hotels and Autograph Collection Hotels) increased 5.6 percent with a 4.5 percent increase in average daily rate. REVPAR for comparable systemwide North American limited-service hotels (including Courtyard, Residence Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn & Suites) increased 4.9 percent in the third quarter with a 3.5 percent increase in average daily rate.
International comparable systemwide REVPAR rose 3.4 percent (a 2.9 percent increase using actual dollars), according to Marriott International, Inc.
Marriott added 44 new properties (6,580 rooms) to its worldwide lodging portfolio in the 2013 third quarter, including the London EDITION, The Prince Sakura Tower Tokyo, an Autograph Collection hotel and the Courtyard Aberdeen Airport in Scotland, which features the new European Courtyard design. Eight properties (2,220 rooms) exited the system during the quarter. At quarter-end, the company’s lodging group encompassed 3,883 properties and timeshare resorts for a total of over 670,000 rooms.
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