Summary
Marriott International, Inc. (MAR) reported solid financial results for the first quarter of 2018, demonstrating continued growth and operational strength. Total revenues reached $5,006 million, an increase from $4,912 million in the prior year's comparable period, driven by robust growth in franchise and incentive management fees. Net income also saw a healthy increase to $398 million, up from $371 million in Q1 2017, with diluted earnings per share rising to $1.09 from $0.95. The company's strategic focus on its asset-light, management, and franchising model continues to yield positive results, with significant system-wide RevPAR growth of 3.6% globally. This growth was observed across various segments, including notable increases in Asia Pacific and Caribbean & Latin America. The company also highlighted substantial system growth, adding 100 properties during the quarter, reinforcing its global presence and expansion strategy. While managing operating costs, Marriott returned value to shareholders through dividends and share repurchases.
Financial Highlights
46 data points| Revenue | $5.01B |
| Operating Expenses | $4.48B |
| Operating Income | $530.00M |
| Interest Expense | $75.00M |
| Net Income | $420.00M |
| EPS (Basic) | $1.17 |
| EPS (Diluted) | $1.16 |
| Shares Outstanding (Basic) | 358.40M |
| Shares Outstanding (Diluted) | 363.30M |
Key Highlights
- 1Net income increased to $398 million in Q1 2018, up from $371 million in Q1 2017, reflecting strong operational performance.
- 2Diluted earnings per share rose to $1.09 from $0.95, indicating improved profitability on a per-share basis.
- 3Total revenues grew to $5,006 million, driven by an 11% increase in gross fee revenues, primarily from franchise and incentive management fees.
- 4Worldwide comparable systemwide RevPAR increased by 3.6%, demonstrating healthy demand and pricing power across Marriott's brands.
- 5The company expanded its global footprint by adding 100 properties during the quarter, bringing the total to 6,591 properties.
- 6Marriott returned capital to shareholders through declared dividends of $0.33 per share and significant share repurchases.
- 7The company benefited from a lower effective tax rate of 20.8% in Q1 2018 compared to 25.0% in Q1 2017, partly due to the Tax Cuts and Jobs Act of 2017.