hospitalitystyle.com

(October 2010) posted on Wed Oct 27, 2010 EDT

Chairman foresees “extraordinary growth” for company

Marriott International Inc. sees major gains it its bottom-line results and returns to hotel owners and shareholders in the coming three years. Top executives from the hotel giant outlined that upbeat outlook in a series of meetings with security analysts and institutional investors in New York.

Marriott said that, assuming growth scenarios of Revenue Per Available Room (RevPAR) of 5 to 9 percent compounded annually over the next three years, its diluted earnings per share could hit $1.90 to $2.75 by 2013, well above the highest earnings per share achieved during Marriott's most recent peak earnings year of 2007. The company also said that total fee revenue could range from $1.57 billion to $1.87 billion and incentive management fees could nearly double through 2013 from 2010 estimated levels, ranging from $285 million to $440 million under those same RevPAR scenarios.

The company expects to add at least 80,000 to 90,000 hotel rooms to its portfolio from 2011 through 2013, with additional opportunities for 22,000 rooms to open in Europe and Asia during that same period. Marriott said it has plans to adapt and expand current brands, such as Courtyard and Fairfield, to meet the growing needs of customers in markets worldwide. The company also said it will be expanding its new brands outside of the United States, including EDITION, which just opened its first hotel on Waikiki Beach in Hawaii, and the Autograph Collection.

“We are on the threshold of extraordinary growth for our company,” said J.W. Marriott Jr., chairman and ceo. “As we look ahead over three years, Marriott is poised to deliver substantial gains in bottom-line results, as well as meaningful returns to hotel owners and shareholders, as our industry-leading portfolio of brands both recovers from the recent recession and grows worldwide.”