Marriott International reported its second quarter 2018 results Monday, revealing diluted earnings per share (EPS) totaling $1.71, a 34 percent increase from the year-ago quarter.
The hotel giant's second quarter 2018 adjusted net income-which excludes merger-related adjustments-totaled $619 million, a 46 percent increase over last year's second quarter adjusted net income of $425 million.
"We were pleased with our performance in the quarter across the board. Worldwide constant dollar RevPAR grew nearly 4 percent in the second quarter, with particularly strong transient demand in many markets outside North America. In North America, solid group business allowed us to drive higher room rates in the quarter," said Marriott president and CEO Arne Sorenson in a statement.
The second quarter saw Marriott reduce commissions paid to group and meetings intermediaries from the standard 10 percent to 7 percent for all hotels in the U.S. and Canada. Companies like Hilton and IHG have since followed suit.
"Our owners opened more than 82,000 rooms over the last 12 months, yielding net rooms growth of 5.7 percent. Over 40 percent of these gross room additions are located outside North America and more than one-third are in upper-upscale and luxury tiers. Our development pipeline increased to roughly 466,000 rooms at quarter-end."
Marriott added 142 new properties-a record 23,287 rooms-to its worldwide lodging portfolio during the most recent quarter. As of the end of the second quarter, the company's worldwide development pipeline totals 2,740 properties. Nearly half of those properties are under construction.
Looking ahead, Marriott appears poised to receive a boost from the rollout of unified benefits across each of its loyalty programs later this month.
"We are excited to introduce one set of unified benefits across our three loyalty programs on August 18, creating an incredibly rich program in which members, on average, will earn 20 percent more points for every dollar spent," added Sorenson. "Members will find it easier to redeem points, achieve elite status and book stays across the entire portfolio."
For the 2018 third quarter, Marriott is forecasting constant dollar RevPAR will increase 1.5 to 2 percent in North America, 5 to 6 percent outside North America and 2.5 to 3 percent worldwide.
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