PHOTO: New York Marriott at the Brooklyn Bridge. (Courtesy of Marriott International)
Marriott International reported its first quarter results on Thursday, posting increases in several key performance metrics.
The major hospitality company reported a 20 percent increase in net income for the first quarter of 2015 (totaling $207 million), while also boasting spikes in revenue per available room (RevPAR), average daily rate (ADR) and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).
RevPAR for worldwide comparable systemwide properties increased 6.8 percent in the first quarter of 2015, compared to the first quarter of 2014 (including a 6.9 percent increase in North American comparable systemwide properties).
ADR overall jumped by 4.9 percent in North America. Marriott's full-service hotels (Marriott Hotels, The Ritz-Carlton, Renaissance Hotels, Gaylord Hotels and Autograph Collection Hotels) posted a 4.6 percent increase in ADR, while the company's limited-service hotels (Courtyard, Residence Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn & Suites) recorded an ADR spike of 5.3 percent.
Adjusted EBITDA totaled $429 million-a 27 percent increase-while diluted EPS rose 28 percent to $0.73.
Marriott was mighty busy building on its collection in the first quarter, as well. The company added 60 new properties (or 10,148 rooms) in the first quarter, including the 1,012-room JW Marriott Austin in Texas. At quarter-end, Marriott featured 4,228 open properties and timeshare resorts, or more than 723,000 rooms worldwide. The company's pipeline consisted of 1,450 properties by quarter's end, including about 500 properties (88,000 rooms) under construction.
In the second quarter, Marriott expects comparable systemwide RevPAR to increase 5 to 7 percent worldwide, compared to the first quarter (including a 5 to 7 percent increase in North America). Diluted EPS is forecasted to range from $0.73 to $0.83 in the second quarter.
For the full year, diluted EPS could total $3 to $3.12, an 18 to 23 percent increase year-over-year. The company forecasts an 8 percent increase in gross room additions for the year.
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