Summary
Marriott International, Inc. reported strong financial performance for the nine months ended September 30, 2017, largely driven by the successful integration of Starwood Hotels & Resorts. Total revenues saw a significant increase of 51% to $2,462 million for the third quarter and a 51% increase to $7,071 million for the first nine months, with fee revenues being the primary driver of this growth. Net income for the nine months reached $1,171 million, a substantial increase from $536 million in the prior year period, reflecting improved operational efficiencies and the benefits of the combined entity. The company's business segments, particularly North American Full-Service and Asia Pacific, showed robust profit growth, with the Starwood acquisition contributing significantly to revenue and profit across all segments. Marriott continued its strategic focus on an asset-light model, emphasizing management and franchising to drive growth with minimal capital investment, while also managing its capital structure effectively through share repurchases and dividend payments. The company remains confident in its liquidity and ability to meet its financial obligations and growth plans.
Financial Highlights
47 data points| Revenue | $5.08B |
| Operating Expenses | $4.29B |
| Operating Income | $790.00M |
| Interest Expense | $73.00M |
| Net Income | $485.00M |
| EPS (Basic) | $1.30 |
| EPS (Diluted) | $1.29 |
| Shares Outstanding (Basic) | 372.30M |
| Shares Outstanding (Diluted) | 376.60M |
Key Highlights
- 1Total revenues for the first nine months of 2017 increased by 51% to $7,071 million, primarily due to the Starwood acquisition.
- 2Net income for the first nine months of 2017 more than doubled to $1,171 million compared to $536 million in the prior year.
- 3Diluted earnings per share for the first nine months of 2017 were $3.06, up from $2.04 in the same period last year.
- 4Fee revenues (base management, franchise, and incentive management fees) grew by 51% to $2,462 million for the first nine months of 2017.
- 5Company-operated house profit margins at comparable properties increased by 70 basis points year-over-year for the first nine months.
- 6Marriott added 341 properties (55,528 rooms) to its system in the first nine months of 2017, demonstrating continued system growth.
- 7The company reported strong liquidity with $1,715 million in available borrowing capacity and a $508 million cash balance as of September 30, 2017.