Summary
Marriott International reported solid performance for the nine months ended September 30, 2019, with net income of $994 million, a decrease from $1,590 million in the prior year period. This decline was largely driven by significant one-time items in the prior year, including gains from property sales and equity investments, as well as an increase in merger-related costs and charges in the current period due to a proposed ICO fine and an office building impairment. Despite this, core revenue streams like base management fees and franchise fees showed healthy growth of 4% and 8% respectively for the nine-month period. The company continued to expand its global footprint, adding 343 properties (52,743 rooms) in the first nine months of 2019, with a robust development pipeline of nearly 495,000 rooms. Key operational metrics like comparable systemwide RevPAR increased by 1.3% year-to-date, indicating continued demand for its brands despite some regional headwinds. The company also returned capital to shareholders through dividends and share repurchases, while managing its debt levels and maintaining adequate liquidity.
Financial Highlights
45 data points| Revenue | $5.28B |
| Operating Expenses | $4.68B |
| Operating Income | $607.00M |
| Interest Expense | $100.00M |
| Net Income | $387.00M |
| EPS (Basic) | $1.17 |
| EPS (Diluted) | $1.16 |
| Shares Outstanding (Basic) | 329.90M |
| Shares Outstanding (Diluted) | 332.50M |
Key Highlights
- 1Net income for the nine months ended September 30, 2019, was $994 million, down from $1,590 million in the prior year period, primarily due to the absence of significant one-time gains from property sales in 2018 and an increase in merger-related costs in 2019.
- 2Gross fee revenues increased by 4% year-over-year to $2,849 million for the first nine months, driven by strong growth in base management fees (up 4%) and franchise fees (up 8%).
- 3Comparable worldwide systemwide RevPAR increased by 1.3% for the first nine months of 2019, indicating steady demand across its portfolio, although performance varied by region.
- 4The company added 343 properties (52,743 rooms) in the first nine months of 2019, expanding its global presence, and maintained a substantial development pipeline of nearly 495,000 rooms.
- 5Merger-related costs and charges significantly increased to $191 million for the nine months ended September 30, 2019, primarily due to a $122 million accrual for a proposed ICO fine related to the data security incident and an impairment charge.
- 6Total debt increased to $10,779 million at September 30, 2019, from $9,347 million at December 31, 2018, mainly due to new note issuances and higher commercial paper borrowings.
- 7The company returned $455 million to shareholders through dividends and repurchased shares during the nine-month period, demonstrating a commitment to shareholder returns.