Summary
Marriott International, Inc. reported a strong performance in 2015, with revenues increasing by 5% to $14.49 billion and operating income rising by 17% to $1.35 billion. This growth was driven by robust RevPAR (Revenue Per Available Room) increases across its diverse brand portfolio, supported by increased occupancy and higher average daily rates. The company continued its strategic focus on management and franchising, which minimizes capital investment and risk while generating stable earnings. Marriott also emphasized its strong loyalty programs and digital advancements as key competitive advantages. A significant development for investors is the announced merger with Starwood Hotels & Resorts Worldwide, Inc., which was expected to close in mid-2016. This combination was positioned to create a leading global hospitality company with an expanded brand portfolio and broader market reach. While the report details various risks associated with this pending merger, the strategic intent was to leverage synergies and enhance shareholder value. The company also continued its share repurchase program and declared consistent quarterly dividends, signaling confidence in its financial health and commitment to returning capital to shareholders.
Financial Highlights
50 data points| Revenue | $14.49B |
| Operating Expenses | $13.14B |
| Operating Income | $1.35B |
| Interest Expense | $167.00M |
| Net Income | $859.00M |
| EPS (Basic) | $3.22 |
| EPS (Diluted) | $3.15 |
| Shares Outstanding (Basic) | 267.30M |
| Shares Outstanding (Diluted) | 272.80M |
Key Highlights
- 1Revenue increased by 5% to $14.49 billion in 2015, driven by a 5.2% increase in comparable systemwide RevPAR.
- 2Operating income grew by 17% to $1.35 billion in 2015, reflecting strong revenue growth and a reduction in general, administrative, and other expenses.
- 3The company announced a significant merger agreement with Starwood Hotels & Resorts Worldwide, Inc. in November 2015, aiming to create a larger, more diversified global hospitality leader.
- 4Marriott continued to expand its portfolio, adding 300 new properties with 51,547 rooms in 2015.
- 5The company's loyalty programs, Marriott Rewards and The Ritz-Carlton Rewards, had over 54 million members, with members accounting for over 50% of room nights booked in 2015.
- 6Marriott maintained a strong liquidity position with $1.16 billion in available borrowing capacity under its credit facility at year-end 2015.
- 7The company continued its share repurchase program and paid consistent quarterly dividends, demonstrating a commitment to shareholder returns.