Summary
Marriott International Inc. reported solid financial performance for the nine months ended September 30, 2018, with net income increasing to $1,491 million from $1,345 million in the prior year period. This growth was driven by strong increases in fee revenues, particularly franchise fees and incentive management fees, reflecting continued unit growth and RevPAR improvements across its brands. While the company experienced higher interest expenses and some cost pressures in administrative and general expenses, the overall financial health appears robust. Marriott's strategic focus on a management and franchising-heavy business model continues to provide stable earnings with limited capital investment. The company is also actively managing its portfolio through property dispositions and acquisitions, as evidenced by the purchase of Sheraton Grand Phoenix and several property sales. Looking ahead, Marriott is navigating evolving accounting standards, notably the upcoming adoption of lease accounting rules, and is managing the ongoing integration of Starwood. The company's liquidity remains strong, supported by its credit facility and operating cash flows, enabling continued investment in growth and shareholder returns through dividends and share repurchases.
Financial Highlights
46 data points| Revenue | $5.05B |
| Operating Expenses | $4.46B |
| Operating Income | $596.00M |
| Interest Expense | $86.00M |
| Net Income | $503.00M |
| EPS (Basic) | $1.45 |
| EPS (Diluted) | $1.43 |
| Shares Outstanding (Basic) | 346.70M |
| Shares Outstanding (Diluted) | 350.60M |
Key Highlights
- 1Net income increased to $1,491 million for the nine months ended September 30, 2018, up from $1,345 million in the same period last year.
- 2Gross fee revenues grew by 12% year-over-year for the nine months, driven by a 20% increase in franchise fees and an 11% increase in incentive management fees.
- 3Comparable systemwide RevPAR increased by 3.1% for the nine months ended September 30, 2018, indicating a healthy demand for Marriott's brands.
- 4The company repurchased 6.7 million shares of common stock in the third quarter of 2018, demonstrating a commitment to returning capital to shareholders.
- 5Marriott's liquidity position remains strong, with $948 million in available borrowing capacity at the end of the third quarter.
- 6The company's effective tax rate decreased significantly due to the Tax Cuts and Jobs Act of 2017, positively impacting net income.
- 7Investments in new properties and amenities, alongside the ongoing integration of Starwood, signal continued focus on long-term growth and brand enhancement.