Marriott International has reported its third quarter results for 2013.* Third quarter 2013 net income totalled $160m, a 12% increase compared to third quarter 2012 net income. Diluted earnings per share (EPS) totalled $0.52, an 18% percent increase from diluted EPS in the year-ago quarter. On July 31st 2013, the company forecasted third quarter diluted EPS of $0.42 to $0.46.
Arne M Sorenson, president and chief executive officer at Marriott International, says: “We had a solid quarter with worldwide revenue per available room (REVPAR) up nearly 5% year-over-year. Short-term group business picked up in North America and occupancy rates reached nearly 75% 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% year-over-year.
“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 12 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 4-6%. Group revenue booking pace for 2014 North American group business improved in the third quarter and is now up over 4% – compared to up 2% a quarter ago. Group revenue booked in the 2013 third quarter for calendar 2014 was up 14% 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% gross, or 3.5-4% net.”
Marriott International added 44 new properties (6580 rooms) to its worldwide lodging portfolio in the 2013 third quarter, including the London Edition, The Prince Sakura Tower Tokyo and the Courtyard Aberdeen Airport in Scotland. Eight properties (2220 rooms) exited the system during the quarter. At quarter-end, the company’s lodging group encompassed 3883 properties and timeshare resorts for a total of over 670,000 rooms.
* Owing to Marriott International’s change in the fiscal calendar at the beginning of this year, the third quarter reflects the period from 1st July to 30th September 2013, compared to the third quarter of last year which reflects the period from 16th June to 7th September 2012.
Prior year results have not been restated for the change in fiscal calendar, although REVPAR, occupancy and average daily rate statistics are reported for calendar quarters for purposes of comparability.
