Highlights
• Diluted earnings per share (EPS) totalled $0.44, a 52% increase over prior year adjusted results
• During the third quarter, the company completed the sale of its equity interest in the Courtyard joint venture resulting in cash proceeds of $96 million and a $41 million pre-tax gain
• North America comparable company-operated REVPAR rose 7.0% in the third quarter. On a constant dollar basis, worldwide comparable systemwide REVPAR rose 6.0% and average daily rate rose 4.7% using constant dollars
• At the end of the third quarter, the company’s worldwide pipeline of hotels under construction, awaiting conversion or approved for development totalled over 120,000 rooms, not including the 8,100 rooms from the acquisition of the Gaylord brand and hotel management business
• Nearly 5,000 rooms opened during the quarter, including over 1,400 rooms converted from competitor brands and over 1,600 rooms in international markets. The company signed nearly 13,000 rooms in the third quarter
• Marriott repurchased 9.6 million shares of the company’s common stock for $353 million during the quarter. Year-to-date through the third quarter, the company repurchased 24.3 million shares for $903 million
• For comparable Marriott Hotels & Resorts properties in North America, group room revenue increased 8% in the third quarter compared to the year ago quarter.
Arne M. Sorenson, president and chief executive officer of Marriott International:
“We were pleased with our third quarter performance. Pricing power continued to improve in the quarter as hotel occupancy levels approached prior peaks. Group revenue at comparable Marriott Hotels and Resorts in North America rose 8% in the third quarter with room rates up 3%. Transient REVPAR rose 6% with strong last-minute retail demand and reduced discounting.
“Looking ahead, we expect 2013 worldwide constant dollar REVPAR to increase at a mid single-digit rate despite moderate economic growth in many markets around the world. We are particularly bullish about our prospects in North America and expect North American systemwide REVPAR to increase 5 to 7% in 2013. In that market, negotiations for special corporate business are already underway and we are targeting room rates to increase at a high single-digit rate. Group revenue on the books for 2013 for the Marriott brand in North America is up over 7% with rates up nearly 4%.
“Worldwide we opened nearly 5,000 rooms during the quarter and signed 13,000 rooms. We are delighted to welcome the Gaylord brand and its five hotels located in Orlando, Nashville, Dallas and Washington, DC to our system in the fourth quarter. Across 14 lodging brands worldwide, our pipeline of hotels under development, under construction or pending conversion increased to over 120,000 rooms during the quarter. Around the world, we expect to add 28,000 rooms in 2012, 30,000 to 35,000 rooms in 2013 and 90,000 to 105,000 for the three-year period from 2012 to 2014. Our market share of hotels continues to grow around the world.”
Fourth quarter outlook
The company expects comparable systemwide REVPAR on a constant dollar basis will increase 5 to 7% in North America, increase roughly 3% outside North America and improve 4 to 6% worldwide.
The company expects to add approximately 28,000 rooms worldwide for the full year 2012. The company also expects approximately 10,000 rooms will leave the system during the year.
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