Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Marriott International    MAR

MARRIOTT INTERNATIONAL

(MAR)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Marriott International : Revenue Lags as Slower Economic Growth Pressures Hotels

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/10/2019 | 12:24pm EST

By Aisha Al-Muslim

Marriott International Inc., the world's largest hotel company, posted weaker than expected revenue growth from guest stays in the latest period, but said its business is stable as it generates more money in fees and expands its portfolio.

Marriott, the parent of hotel brands including Ritz-Carlton, Westin and Renaissance, said Friday that comparable systemwide revenue per available room rose 1.1% excluding currency fluctuations in the first quarter. RevPAR, which reflects pricing power, grew at a faster pace outside North America than it did on the continent, but both regions still missed Marriott's outlook for the quarter.

Overall, revenue was flat from a year earlier at $5.01 billion, beneath analysts' consensus forecast of $5.11 billion.

The stock fell 5.5% to $128.03 in morning trading. Marriott's results dragged on other lodging stocks including Hilton Worldwide Holdings Inc., Hyatt Hotels Corp. and Wyndham Hotels & Resorts Inc.

Despite a sluggish start to the year, Marriott maintained its full-year forecast for RevPAR to rise 1% to 3% world-wide. The company said it still plans for its hotel room count to increase about 5.5% for the year.

Hotel companies have signaled they expect RevPAR to slow down this year compared with 2018 because of pressure from a maturing global economy, a relative slowdown in China and worries about the impact of Brexit on Europe.

In recent weeks, Hilton, Hyatt and Wyndham have also reaffirmed their full-year RevPAR growth outlook of about 1% to 3%. On Thursday, Choice Hotels International Inc. lowered the high-end of its prior RevPAR guidance.

In the latest period, Marriott's first-quarter profit fell to $375 million, or $1.09 a share, from $420 million, or $1.16 a share, a year earlier. Last year's results benefited from one-time gains from hotels sold.

Excluding special items, adjusted earnings were $1.41 a share, higher than the $1.34 a share expected from analysts polled by Refinitiv. If not for nonoperating items, earnings would have fallen short of consensus expectations, Sanford C. Bernstein analysts said a note.

Marriott raised its full-year adjusted profit forecast on Friday, due in part to a lower effective tax rate. Marriott guided earnings per share of $5.97 to $6.19, compared with its prior estimate of $5.87 to $6.10. It also raised its forecast on gross fee revenue this year.

The company said it incurred $44 million of expenses and had $46 million of insurance recoveries related to a data breach disclosed in November. Marriott has said a hack in the reservation database for its Starwood properties may have exposed the personal information of up to 500 million guests, but that number was later revised lower.

Consumers and others have filed about 100 hack-related lawsuits in U.S. state and federal courts as well as in Canada, the company said in a regulatory filing Friday.

Last week, Marriott said its chief executive, Arne Sorenson, 60 years old, was diagnosed with stage-2 pancreatic cancer and was expected to undergo chemotherapy this week. Mr. Sorenson, who has been CEO since 2012, would remain in his role, the company said.

Under his leadership, Marriott also plans to move deeper into the home-sharing space, competing even more with Airbnb Inc., Expedia Group Inc.'s Vrbo and others. In late April, Marriott said it would begin offering accommodations starting this week in about 2,000 high-end homes throughout 100 markets across the U.S., Europe and Latin America. Hilton said last week that alternative accommodations isn't a business it is currently pursuing.

Mr. Sorenson led the acquisition of Starwood Hotels & Resorts Worldwide in September 2016, creating a giant with more than 5,500 hotels and 30 hotel brands. In March, Marriott said it was planning to open more than 1,700 hotels over the next three years.

Marriott is still working through problems associated with its Starwood acquisition. There have also been difficulties integrating the rewards-points system, and an activist investor has criticized the company for having too many brands.

The company has focused recently on boosting its rewards programs and driving customers to book directly on its websites. In February, Marriott International changed the name of its loyalty program to Marriott Bonvoy. The program's membership rose by 5 million to nearly 130 million members, the company said Friday.

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
MARRIOTT INTERNATIONAL 1.42% 142.29 Delayed Quote.31.07%
RENAISSANCE,INCORPORATED 0.28% 1770 End-of-day quote.-12.25%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MARRIOTT INTERNATIONAL
08:01aMARRIOTT INTERNATIONAL : Completes Acquisition of Elegant Hotels Group
PR
12/06MARRIOTT INTERNATIONAL : The Luxury Collection Unveils Debut Property in the Sey..
AQ
12/05MARRIOTT INTERNATIONAL : The Luxury Collection Unveils Debut Property in the Sey..
PR
12/05MARRIOTT INTERNATIONAL : Expected To Debut More Than 30 Luxury Hotels In Establi..
AQ
12/05MARRIOTT INTERNATIONAL : Courtyard by Marriott Docks in Hamburg City
AQ
12/03MARRIOTT INTERNATIONAL : CFO to Speak At Barclays Gaming, Lodging, Leisure, Rest..
AQ
12/03MARRIOTT INTERNATIONAL : Hotel Goldener Hirsch, A Luxury Collection Hotel, Salzb..
AQ
12/03MARRIOTT INTERNATIONAL : Courtyard by Marriott Docks in Hamburg City
AQ
12/02MARRIOTT INTERNATIONAL : CFO To Speak At Barclays Gaming, Lodging, Leisure, Rest..
PR
12/02MARRIOTT INTERNATIONAL : Hotel Goldener Hirsch, A Luxury Collection Hotel, Salzb..
PR
More news
Financials (USD)
Sales 2019 21 139 M
EBIT 2019 2 633 M
Net income 2019 1 601 M
Debt 2019 10 701 M
Yield 2019 1,28%
P/E ratio 2019 31,7x
P/E ratio 2020 21,9x
EV / Sales2019 2,71x
EV / Sales2020 2,63x
Capitalization 46 520 M
Chart MARRIOTT INTERNATIONAL
Duration : Period :
Marriott International Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends MARRIOTT INTERNATIONAL
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 28
Average target price 137,32  $
Last Close Price 142,29  $
Spread / Highest target 16,0%
Spread / Average Target -3,49%
Spread / Lowest Target -13,6%
EPS Revisions
Managers
NameTitle
Arne M. Sorenson President, Chief Executive Officer & Director
John Willard Marriott Executive Chairman
Kathleen Kelly Oberg Chief Financial Officer & Executive Vice President
Bruce Hoffmeister Global Chief Information Officer
Lawrence W. Kellner Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
MARRIOTT INTERNATIONAL31.07%46 520
HILTON WORLDWIDE HOLDINGS INC.46.89%29 760
INTERCONTINENTAL HOTELS GROUP PLC14.10%11 456
ACCOR4.45%11 379
HUAZHU GROUP LIMITED20.29%9 777
HYATT HOTELS CORPORATION19.70%8 314