BETHESDA, MD — Marriott International announced a growth plan that would add up to 300,000 rooms in the next three years, the company reported Tuesday in a filing with the Securities and Exchange Commission that will be presented at its investor meeting.
The company plans to open one hotel around the world every 14 hours and add up to 300,000 rooms by 2019. This opens up the possibility of $675 million in annualized fees from these rooms alone.
Marriott has over 6,000 properties in 122 countries with over 30 brands such as Bulgari, the Ritz-Carlton, Edition, The Luxury Collection and Westin.
The September 2016 acquisition of Starwood Hotels and Resorts for $12.4 billion has also helped the company. Marriott took a significant market share lead with over 8 percent of worldwide hotel rooms.
The company expects net room growth to grow to an annual compound rate of 6.5 percent, up from 5 percent.
“Marriott has made a significant leap forward in distribution and scale with its once-in-a-generation acquisition of Starwood,” said President and CEO Arne Sorenson in a statement. “With global travel estimated to increase at a 7 percent compounded rate over the next 10 years and international trips expected to top 1.8 billion by 2030, Marriott is well positioned to benefit given its strong global footprint now in 122 countries and territories and an unmatched portfolio of 30 lodging brands.”
In addition to the $675 million from the new rooms, the company also expects non-property related franchise fees, such as credit card branding fees, to increase about $100 million over the three years.
The new growth plan also assumes a revenue per available room growth of 1 to 3 percent, compounded annually, through 2019.
The company expects earnings per share of $5.25 to $5.80 by 2019, a compound growth rate of 17 percent to 21 percent from 2016. Adjusted EBITDA should increase 7 to 10 percent, and net income should increase 11 to 14 percent.
Shareholders can expect to see $1.4 billion to $1.5 billion in dividends, and $6.9 billion to $7.8 billion in repurchases over the next three years.
Marriott’s shares rose $2.43, or 2.7 percent, to $91.11 in early Tuesday trading.
This is a story from the Maryland Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism