Marriott announces accelerated growth three-year plan
Marriott International has unveiled the company's three-year growth plan, which includes opening approximately one hotel every 14 hours worldwide.
At its meeting with security analysts and institutional investors at the New York Marriott Marquis, it outlined plans to accelerate growth of 285,000 to 300,000 rooms worldwide by 2019, rooms which could yield a record $675m (£542m) in annual stabilised fees through 2019.
Over the next three years, the company expects net room growth to accelerate to an annual compound rate of 6.5%, compared to a 5% over the last three years.
It said the company's combined loyalty programme now has over 100 million members, growing at a pace of roughly one million net new members per month since its acquisition of Starwood last year.
In addition, non-property related franchise fees, largely credit card branding fees, should increase by $100m (£80m) during the three years. The plan assumes revpar growth of 1-3% compounded annually through 2019.
Given these assumptions, over the next three years the company could produce adjusted EBITDA increasing by 7-10% compounded, excluding the impact of asset sales, with net income increasing by 11-14% compounded.
Earlier today, the company also announced investment in online destination experience search platform PlacePass, which will allow Marriott to offer more experiences to guests and members.
Arne Sorenson, Marriott International president and chief executive, said: "We are more optimistic than ever about our future. Marriott has made a significant leap forward in distribution and scale with its once-in-a-generation acquisition of Starwood."
Leeny Oberg, Marriott International executive vice president and chief financial officer, added: "While the acquisition has provided us with enviable distribution, scale and global footprint, Marriott's strategy hasn't changed. We remain focused on growing our superior brand portfolio through signing long-term, high quality contracts with minimal investment."
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