Summary
Marriott International, Inc. reported strong financial performance for the six months ended June 30, 2017, significantly impacted by the acquisition of Starwood Hotels & Resorts, which closed in September 2016. Total revenues, including those from owned, leased, and other operations, saw substantial growth. Net income for the six months was $779 million, a significant increase from $466 million in the prior year period. Diluted earnings per share also saw a healthy rise. The company's strategy of focusing on management and franchising, rather than ownership, continues to provide stable earnings and growth potential with minimized financial leverage. The integration of Starwood is progressing, with combined operations contributing significantly to revenue growth across all segments. While merger-related costs and charges were present, the strategic benefits of the acquisition are becoming evident in the increased fee revenues and expanded global footprint. Marriott remains focused on operational efficiency, brand strength, and leveraging its loyalty programs to drive future growth and shareholder value.
Financial Highlights
46 data points| Revenue | $5.21B |
| Operating Expenses | $4.47B |
| Operating Income | $744.00M |
| Interest Expense | $73.00M |
| Net Income | $489.00M |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 378.50M |
| Shares Outstanding (Diluted) | 383.00M |
Key Highlights
- 1Net income increased to $779 million for the first six months of 2017, up from $466 million in the same period of 2016, driven significantly by the Starwood acquisition.
- 2Diluted earnings per share rose to $2.02 for the first six months of 2017, compared to $1.80 in the prior year period.
- 3Total fee revenues (base, franchise, and incentive management fees) increased by 52% to $1.63 billion for the first six months of 2017, largely due to the inclusion of Starwood's operations.
- 4Owned, leased, and other revenue, net of direct expenses, more than doubled to $184 million for the first six months of 2017, primarily reflecting the Starwood acquisition.
- 5The company added 203 properties (32,756 rooms) in the first half of 2017, with a development pipeline of over 440,000 rooms, indicating future growth potential.
- 6Marriott's financial position remains solid, with $498 million in cash and equivalents at the end of the period and a credit facility providing ample liquidity.
- 7Comparable systemwide RevPAR increased by 2.7% for the first six months of 2017, demonstrating underlying brand performance despite the significant impact of the acquisition.