Marriott International Reports Fourth Quarter and Full Year 2013 Results

Marriott International Reports Fourth Quarter and Full Year 2013 Results

Marriott International Reports Fourth Quarter and Full Year 2013 Results

The FINANCIAL -- Full year 2013 net income totaled $626 million compared to $571 million for full year 2012, according to Marriott International, Inc.

 

Full year 2012 net income included the $25 million after-tax Courtyard joint venture gain.

Full year 2013 diluted earnings per share (EPS) totaled $2.00 compared to $1.72 in 2012.  On October 30, 2013, the company forecasted full year diluted EPS of $1.98 to $2.01.

“2013 was a year of firsts.  Strong REVPAR growth and new hotels drove Marriott’s fee revenue to a record $1.5 billion.  We signed contracts with owners and franchisees for 67,000 new rooms, the most productive year in our history averaging more than one hotel every day.  Our development pipeline reached a record 195,000 rooms," said Arne M. Sorenson, president and chief executive officer of Marriott International.

 

“Our North American group sales organization booked $3.4 billion in new group business in 2013 for all future periods, eclipsing their prior record from 2007.  Group revenue on the books for 2014 is running more than 4 percent higher than 2013 levels for the Marriott brand.  Special corporate negotiated rates are nearly complete with room rates expected to rise about 5 percent in 2014.

“Marriott Rewards and Ritz-Carlton Rewards signed a combined 3.4 million new members, contributing to the nearly 50 percent growth in membership over the last 5 years.  Roughly 45 percent of that 5-year growth was outside the U.S.  In 2013, a record 25 percent of room nights were booked on Marriott.com.  Marriott mobile reservations surged by 67 percent in 2013 and we introduced mobile check-in for all Marriott Hotels in the United States, another industry first.

“For 2014, we expect worldwide systemwide REVPAR to increase 4 to 6 percent.  With our strong development pipeline and the anticipated addition of the Protea hotels in Africa, we expect rooms growth will accelerate to approximately 6 percent gross or roughly 5 percent, net of deletions.

“During 2013, we were pleased to return over $1 billion to our shareholders through dividends and share repurchases, the top end of our expectations for the year.  In 2014 we could return an additional $1.25 billion to $1.5 billion to our shareholders.  In fact, we have already repurchased 5 million shares for $246 million dollars year-to-date.  Over the last three years, we have returned over $3.9 billion to our shareholders through share repurchases and dividends and reduced our average fully diluted shares by 17 percent,” Sorenson added.