Summary
Marriott International Inc. reported a solid first quarter for 2001, with net income increasing by 29% to $121 million on sales of $2.46 billion. This growth was driven by an 11% increase in systemwide sales and a 12% rise in operating profit for its Lodging segments. The company successfully navigated a challenging economic environment, with comparable company-operated U.S. properties showing a 2.5% increase in REVPAR, supported by a 5.5% rise in average room rates, though occupancy saw a slight decrease. The report also highlights the company's strategic initiatives, including the expansion of its select-service and extended-stay brands, and positive international lodging performance. The Distribution Services segment showed significant improvement, with an 18% sales increase and a return to profitability, partly due to favorable comparisons with a prior-year charge. The company ended the quarter with strong liquidity, including $370 million in cash and equivalents and nearly $2.4 billion in cash and available borrowing capacity.
Key Highlights
- 1Net income rose 29% to $121 million in Q1 2001 compared to Q1 2000.
- 2Total sales increased by 13% to $2.46 billion.
- 3Diluted earnings per share (EPS) grew 27% to $0.47.
- 4Comparable company-operated U.S. properties saw a 2.5% increase in REVPAR, driven by a 5.5% rise in average daily rates.
- 5The Distribution Services segment turned profitable with an 18% increase in sales.
- 6The company ended the quarter with a strong liquidity position, including $370 million in cash and equivalents.
- 7Marriott Vacation Club International reported substantial profit growth on a 19% increase in contract sales.