What were the main drivers of Marriott's revenue growth in the first quarter of 2015?

Marriott's revenue growth in the first quarter of 2015 was primarily driven by an increase of $128 million in cost reimbursements, $41 million in franchise fees, $23 million in owned, leased, and other revenue, $18 million in incentive management fees, and $10 million in base management fees, contributing to an overall 7% increase in total revenues.

What significant acquisitions or dispositions occurred during the reported period?

In the first quarter of 2015, Marriott acquired the Delta Hotels and Resorts brand for approximately $136 million. Additionally, the company completed the sale of The Miami Beach EDITION hotel for $230 million and The New York (Madison Square Park) EDITION hotel for $343 million (recognized in the second quarter). An impairment charge of $6 million was recorded for The New York EDITION, and another $6 million impairment charge was recorded for The Miami Beach EDITION residences.

How did Marriott's debt levels change during the quarter?

Marriott's total long-term debt increased by $247 million to $4,028 million at the end of the first quarter of 2015, compared to $3,781 million at the end of 2014. This increase was primarily due to a $248 million rise in commercial paper borrowings.

What is Marriott's outlook regarding its development pipeline and future growth?

Marriott maintained a robust development pipeline with nearly 240,000 rooms at the end of the first quarter of 2015. The company expects its total room count to increase by approximately 8% in 2015, fueled by new additions and acquisitions, demonstrating a strong commitment to future growth.

MAR 10-Q Quarterly Report Q1 FY2015 — Revenue, Net Income, EPS

Summary

Marriott International, Inc. reported strong financial results for the first quarter of 2015, showcasing a significant increase in net income and earnings per share compared to the prior year. Revenues saw a healthy growth of 7%, driven by robust performance across base management fees, franchise fees, and owned, leased, and other revenue streams. This top-line growth translated into improved operating income and a substantial 28% increase in diluted earnings per share, reflecting effective operational management and favorable market conditions. Key strategic moves, such as the acquisition of the Delta Hotels and Resorts brand, are expected to contribute to future growth. The company's asset-light strategy continues to be a core strength, minimizing financial leverage and risk while maximizing financial flexibility. With a solid development pipeline and continued focus on brand strength and guest satisfaction, Marriott appears well-positioned for sustained growth, though it remains mindful of potential economic uncertainties and competitive pressures.

Financial Highlights

47 data points

Beta

Revenue

$3.51B

Net Income

$207.00M

0.1% Net Margin

EPS (Diluted)

$0.73

Total Assets

$6.80B

Cash & Equivalents

$120.00M

Free Cash Flow

$187.00M

Financial Statements

Beta

Revenue	$3.51B
Operating Expenses	$3.18B
Operating Income	$332.00M
Interest Expense	$36.00M
Net Income	$207.00M
EPS (Basic)	$0.75
EPS (Diluted)	$0.73
Shares Outstanding (Basic)	277.70M
Shares Outstanding (Diluted)	283.50M

Key Highlights

1Net income increased by $35 million to $207 million for the first quarter of 2015 compared to $172 million in the same period of 2014.
2Diluted Earnings Per Share (EPS) grew by 28% to $0.73 in Q1 2015 from $0.57 in Q1 2014.
3Total revenues increased by 7% to $3,513 million in Q1 2015, primarily driven by higher cost reimbursements, franchise fees, and owned, leased, and other revenue.
4Operating income rose by $78 million to $332 million, demonstrating improved profitability from core operations.
5Marriott acquired the Delta Hotels and Resorts brand for approximately $136 million, adding 37 hotels and over 10,000 rooms to its system.
6Comparable worldwide systemwide RevPAR increased by 6.8%, indicating healthy demand and pricing power across the portfolio.
7The company's lodging development pipeline remained strong with nearly 240,000 rooms.

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q1 Ended Mar 31, 2015

Summary

Financial Highlights

Key Highlights

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