Marriott, Starwood Report Fourth Quarter 2015 Results
PHOTO: Aruba Marriott Resort & Stellaris Casino. (Photo courtesy of Marriott International)
Marriott International and Starwood Hotels & Resorts Worldwide each reported their fourth quarter 2015 results this week, shedding a key light on where they stand ahead of their impending merger.
Marriott "Pleased" With 2015 Results
Marriott reported that both net income and diluted EPS rose in the fourth quarter of 2015. The former reached $202 million, representing a 3 percent increase from the same period in 2014, while the latter climbed 13 percent from the fourth quarter in 2014 to $0.77.
In a statement, Marriott president and CEO Arne Sorenson said the company is "pleased with our results for 2015."
"Worldwide systemwide comparable RevPAR rose 5 percent on a constant dollar basis for the full year with average daily rate up 4 percent. In North America, RevPAR also grew 5 percent for systemwide comparable properties and occupancy reached a record 74 percent. Fee revenue increased 9 percent, diluted earnings per share rose 24 percent and adjusted EBITDA increased 13 percent," he added.
Marriott's adjusted EBITDA for the full year 2015 totaled $1.718 billion.
The company's impressive 2015 was also highlighted by the addition of more than 50,000 new rooms worldwide and the signing of more than 100,000 others.
Marriott took to Twitter Thursday morning to live tweet its fourth quarter 2015 earnings call.
Following an encouraging closing quarter to 2015, Marriott is looking ahead to what promises to be a banner year in 2016.
Not accounting for the impending Starwood acquisition, Marriott said it anticipates diluted EPS and adjusted EBITDA to increase by at least 17 percent and 10 percent, respectively, for the full year 2016.
Starwood Strategy Hasn't Changed
The theme of Starwood's fourth quarter 2015 results announcement was optimism.
While the company fell just short of analyst predictions in total revenue, it exceeded expectations elsewhere. For example, Starwood reported fourth quarter EPS of $0.89, trumping earlier estimates of $0.79, per BidnessETC.com.
Net income from continuing operations in the quarter was $151 million and $166 million when including special items. Meanwhile, worldwide systemwide RevPAR for same-store hotels rose 2.8 percent in constant dollars compared to the previous year.
Starwood's adjusted EBITDA for the full year finished at $1.197 billion.
Recently-appointed CEO Thomas Mangas said the company had "good momentum" through 2015, citing RevPAR index gains across all six global regions and a record-breaking year of growth in terms of signings and openings.
Moving forward in 2016, Mangas said Starwood will prioritize growth acceleration, talent development, brand innovation, and RevPAR growth. "While 2015 was clearly a year of change for Starwood given our announced merger with Marriott, our strategy remains very much intact and on track," Mangas concluded in a statement.
Marriott's acquisition of Starwood is still expected to be completed in mid-2016.
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