Marriott reports “solid” first quarter

Marriott posted a US$172m net profit in Q1 (photo by Vale Stock)
Marriott posted a US$172m net profit in Q1 (photo by Vale Stock)

Marriott International posted a US$172 million net profit in the first quarter of 2014.

The results, which the hotel group’s president & CEO Arne Sorenson described as “solid”, marked a 26% increase compared to Q1 2013, although this year’s reporting period was three days longer.

The company’s revenues totalled US$3.3 billion in the first quarter of this year, up from US$3.1bn in the shorter Q1 2013, with management and franchise fees rising to US$318m. Marriott said this upswing “largely reflects higher revPAR (revenue per available room) and non-room revenue”.

The company’s international hotels (not including North America) experienced a 5.7% increase in revPAR in Q1 2014, and Marriott added 32 new properties, comprising 5,855 rooms, to its global portfolio.

These new additions included the Ritz-Carlton Kyoto, JW Marriott Dongdaenum Square Seoul and the Pier One Sydney Harbour, which became a member of the Autograph Collection hotel. Fourteen hotels, comprising 2,154 rooms, left Marriott’s international network in Q1, leaving the company with a total portfolio of 3,934 properties, comprising 680,000 rooms.

Marriott also completed the acquisition of South Africa’s Protea Hospitality Group in Q1 2014.

“We are delighted to report solid results in the first quarter of 2014,” said Sorenson. “We continue to enjoy strong preference for our brands, sustained economic growth and favourable industry supply trends in many markets around the world.

“We remain committed to increasing revPAR, growing our distribution globally and controlling costs in order to drive earnings and shareholder value,” he added.

By region, Marriott’s hotels in Latin America and the Caribbean experienced the strongest revPAR growth in Q1, rising 9.9% year-on-year, followed by North America (+6.3%), Asia Pacific (+6.2%), Europe (+3.6%) and Middle East & Africa (+0.4%).

For the second quarter of 2014, the company expects revPAR to increase 4-6% worldwide.

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