Summary
Marriott International, Inc. (MAR) reported its first quarter 2011 financial results, demonstrating a continued recovery in the lodging sector. Total revenues increased by 6% year-over-year, driven by higher cost reimbursements, base management fees, and franchise fees, reflecting strengthening RevPAR and unit growth. Operating income saw a modest increase, though this was partially offset by a significant rise in general, administrative, and other expenses. Net income rose by 22% to $101 million, with diluted EPS improving to $0.26. The company highlighted positive RevPAR growth across most segments and regions, particularly in Asia, Europe, and North America, though the Middle East and Japan faced headwinds. Notably, Marriott announced plans to spin off its timeshare operations into a separate, publicly traded company later in 2011, aiming to unlock value and allow both entities to focus on their respective core businesses. The company also resumed issuing commercial paper, indicating improved liquidity.
Financial Highlights
51 data points| Revenue | $2.78B |
| Operating Expenses | $2.59B |
| Operating Income | $191.00M |
| Interest Expense | $41.00M |
| Net Income | $101.00M |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 367.10M |
| Shares Outstanding (Diluted) | 381.80M |
Key Highlights
- 1Total revenues increased 6% to $2.78 billion compared to the prior year, driven by growth in management and franchise fees and higher cost reimbursements.
- 2Net income grew 22% to $101 million ($0.26 per diluted share), indicating a recovering operational performance.
- 3Worldwide RevPAR (Revenue Per Available Room) for comparable properties increased by 6.5% on a constant dollar basis, signaling a strengthening lodging demand.
- 4Marriott announced plans to spin off its timeshare business into a separate company, expected to be completed by late 2011.
- 5General, administrative, and other expenses increased by 15% to $159 million, primarily due to higher incentive compensation and other international costs.
- 6The company resumed issuing commercial paper in March 2011, reflecting improved liquidity and credit ratings.
- 7Company-operated house profit margins increased by 30 basis points globally, driven by higher occupancy, rate increases, and cost controls.