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Marriott upbeat after 5.3% boost in revpar

31 July 2015 by
Marriott upbeat after 5.3% boost in revpar

Marriott International has reported upbeat second-quarter results, partly attributed to a 5.3% boost in revpar and an increase in rooms of more than 6% across its worldwide portfolio.

These helped drive up revenues to $3.7b (£2.37b), compared with $3.5b (£2.24b), in the second quarter of 2014. Net income was $240m (£153m), a 25% increase over the same period last year, at $192m (£122.76m).

The results reflect a $41m ($26.21m) pre-tax gain ($25m after tax) up from $33m (£21.1m) in 2014.

President and chief executive Arne Sorenson said: "As of today, we have returned nearly $1.5b (£9.6m) to our shareholders through share repurchases and dividends in 2015. We expect to return more than $2b (£1.28b) in 2015."

The company added 20,000 rooms in the second quarter, including 9,600 rooms in Canada from its acquisition of 37 Delta Hotels and Resorts and 3,800 rooms outside North America. This means the company has reached its goal to have one million rooms open or under development some six months ahead of plan.

"We see growth potential for Delta around the world," commented Sorenson. "We continue to expect to increase our open rooms distribution by 8% gross, 7% net in 2015."

The company forecast for the full year is that RevPar will increase to 6.5% worldwide.

US-based Marriott International has more than 4,300 properties in 81 countries. It operates and franchises hotels and licenses holiday ownership resorts under 19 brands, including Ritz-Carlton, Renaissance, Edition and Courtyard.

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