Marriott International reports strong Q1 results following acquisition of Starwood Hotels
In the 2017 first quarter, adjusted net income totalled $395m (£305m), a 36% increase over 2016 first quarter combined net income of $290m (£223m). Adjusted diluted EPS in the first quarter increased by 38% to £1.01 (£0.78).
Worldwide revpar increased by 3.1% compared with the first quarter of 2016.
Adjusted 2017 first quarter results exclude merger-related costs.
Merger-related costs and charges came to $51m (£39m) in the first quarter, which included $21m (£16m) of severance and retention costs, $23m (£17m) integration costs and $7m (£5m) of transaction costs.
During the first quarter of 2017, Marriott added 103 new properties (17,183 rooms) to its worldwide lodging portfolio, including: the Le Méridien Visconti Rome; the Fairfield by Marriott Kathmandu in Nepal; and the Sheraton Annaba Hotel in Algeria. At quarter-end, Marriott's lodging system incorporated 6,161 properties and timeshare resorts with nearly 1,203,000 rooms.
Arne Sorenson, president and chief executive officer of Marriott International, said: "We were pleased by our performance in the quarter across the board. With just over 3 percent RevPAR growth worldwide, our teams did an excellent job driving margin improvement of 100 basis points at company-operated hotels.
"We continue to make great progress on integrating the Starwood and Marriott lodging businesses, gaining efficiencies at both the corporate and property levels. Legacy-Starwood hotels are enjoying the benefits of Marriott's OTA contracts and procurement agreements, and are in the process of transitioning to our above-property shared-service model for finance and accounting. Our global sales organization, which maintains relationships with our largest customers, is now fully integrated."
At the end of the first quarter, Marriott's worldwide development pipeline totalled 2,536 properties (over 430,000 rooms), including 917 properties with approximately 166,000 rooms under construction and 207 properties with roughly 36,000 rooms approved for development, but not yet subject to signed contracts.
Marriott International is based in Bethesda, Maryland, USA, and has over 6,100 properties in 124 countries and territories.
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