Marriott International has reported net income of $610m (£471m) in its second quarter results, a 25% increase on 2017.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled $939m (£724m) in the quarter, a 15% increase on 2017's second quarter and higher than expected due to strong fee revenue; better than expected owned, leased and other revenues; and lower than expected general and administrative expenses.
Revenue per available room (revpar) rose 3.8% worldwide, and the company added a record 23,000 rooms during the second quarter, including roughly 2,900 rooms converted from competitor brands. At quarter-end, Marriott's worldwide development pipeline increased to roughly 466,000 rooms, including approximately 41,500 rooms approved, but not yet subject to signed contracts.
Arne M Sorenson, president and chief executive officer of Marriott International, said: "We were pleased with our performance in the quarter across the board.
"Since we acquired Starwood, we have recycled capital totalling nearly $1.b, exceeding our goal of recycling $1.5b by year-end 2018. For full year 2018, we expect to return more than $3.1b to shareholders through share repurchases and dividends. To date this year, we have already returned $2.2b to shareholders."
The company added 142 new properties to its portfolio during the second quarter; while 16 properties exited Marriott. At quarter-end, Marriott's portfolio encompassed 6,717 properties and timeshare resorts with nearly 1,287,000 rooms. At quarter-end, the company's worldwide development pipeline totalled 2,740 properties.
At the end of the quarter, Marriott's total debt was nearly $9b (£6.94b), compared to $8.24b (£6.36b) at the end of 2017.
For the full year, Marriott expects revpar will increase 3%-4% worldwide, with a roughly 5% increase in rooms, reflecting more room deletions, largely due to product quality issues, workout of Legacy-Starwood properties, and a few hotels removed from the system due to severe damage from last year's natural disasters.
Marriott expects full year adjusted EBITDA could total $3.45b (£2.66b) to $3.5b (£2.7b), a 10%-12% increase on 2017.