Marriott Worldwide (NASDAQ: MAR) immediately will current the corporate’s three-year progress plan, which incorporates opening greater than 1,700 resorts world wide, at its assembly with institutional buyers and safety analysts on the New York Marriott Marquis.
Marriott will define its plan so as to add between 275,000 and 295,000 rooms by 2021, supported by the power of its document 478,000-room pipeline, together with roughly 214,000 rooms already underneath building. Marriott will disclose that its new room openings throughout this era may contribute $400 million in price income in 2021 and $700 million yearly when stabilized. The corporate’s three-year progress plan assumes, however doesn’t forecast, comparable resort income per out there room (RevPAR) progress of 1 and three %, compounded yearly.
“Starwood has made us a extra formidable competitor, offering a extra beneficial loyalty program, manufacturers with robust attraction to loyalty members and homeowners, gifted associates, terrific places, significantly within the fast-growing Asia Pacific area, vital value synergies and significant scale,” stated Arne Sorenson, Marriott Worldwide president and chief government officer. “We launched our newly branded loyalty program, Marriott Bonvoy, simply final month. This system reached 125 million members as of year-end 2018 including roughly 50,000 members per day.”
Given the assumptions for its three-year plan, the corporate may produce the next outcomes:
Diluted earnings per share of $7.65 to $8.50 by 2021, a compound progress fee of 11 to 15 % over 2018 adjusted outcomes;
Adjusted earnings earlier than curiosity, taxes, depreciation and amortization (adjusted EBITDA) rising by 6 to 9 % compounded, with web earnings rising by 5 to eight % compounded, every in comparison with adjusted ends in 2018;
Money out there for shareholders may complete $9.5 to $11 billion for the three years (2019 by 2021);
Shareholders may see $1.9 to $2 billion in dividends, assuming a continued 30 % payout ratio, and $7.6 to $9 billion in share repurchases over the three-year interval.
Marriott’s rising pipeline of latest resorts is fueled by the robust profitability of its resorts, the broad choice of highly effective manufacturers out there for growth, its wealthy loyalty program, decrease prices from the corporate’s significant scale, and the robust confidence of its homeowners and franchisees. The corporate will disclose that 70 % of its portfolio of open and signed pipeline tasks is held by homeowners with a number of Marriott properties, and roughly one-third is held by homeowners with ten or extra Marriott branded resorts. Marriott’s growth pipeline displays an rising variety of legacy-Starwood branded resorts. Because the merger date, the pipeline of legacy-Starwood manufacturers has elevated practically 25 % to symbolize practically one-third of the legacy-Starwood portfolio’s system dimension.
The corporate can even talk about its success enhancing the Sheraton model. With greater than 155,000 rooms, Sheraton is the corporate’s most geographically various model and the corporate’s third largest model globally measured in each rooms and charges. The model contributes considerably to Marriott’s total scale and successfully reduces prices for all of the resorts in Marriott’s worldwide system. Multiple-quarter of Sheratons are already underneath renovation or dedicated to a renovation. In 2018, Marriott launched a brand new Sheraton model technique, visitor room prototype and design method, and only a week in the past, unveiled the brand new Sheraton emblem, signaling change to homeowners, operators, visitors and Sheraton associates. Because the acquisition, Sheraton’s RevPAR index has improved to over 100.
“Our new three-year plan, with Starwood totally built-in, demonstrates how our fee-based, asset-light enterprise mannequin generates even stronger and extra sustainable money flows. This permits us to speculate profitably in our core enterprise at excessive charges of return and likewise return vital quantities of capital to shareholders,” stated Leeny Oberg, Marriott Worldwide’s government vp and chief monetary officer. “Our confirmed enterprise mannequin mixed with alternatives to leverage our vital scale from the Starwood acquisition uniquely place us for added shareholder worth creation.”
Marriott will present a dwell webcast of immediately’s investor and safety analyst convention. The dwell webcast will probably be out there for buyers on March 18, 2019 from roughly 9:30 AM to three:00 PM Jap Daylight Time within the U.S. Slides and video from the assembly will probably be supplied by a dwell webcast through Marriott’s investor relations web page. The slides comprise monetary fashions for the three-year interval, together with estimates of web earnings, adjusted earnings earlier than curiosity, taxes, depreciation and amortization (adjusted EBITDA) and money from operations, in addition to non-GAAP monetary measure reconciliations for these estimates as applicable. Copies of slides will probably be out there for obtain at roughly 8:00 AM Jap Daylight Time. These wishing to entry the webcast ought to log into http://www.marriott.com/investor, and click on on the Safety Analyst Assembly hyperlink underneath the “Latest & Upcoming Occasions” tab. Presentation supplies from the assembly and the webcast replay will probably be out there on-line after the assembly as nicely.

About Marriott Worldwide, Inc.
Marriott Worldwide, Inc. (NASDAQ: MAR) is predicated in Bethesda, Maryland, USA, and encompasses a portfolio of greater than 6,900 properties in 30 main resort manufacturers spanning 130 international locations and territories. Marriott operates and franchises resorts and licenses trip possession resorts all world wide. The corporate now affords one journey program, Marriott BonvoyTM , changing Marriott Rewards®, The Ritz-Carlton Rewards®, and Starwood Most popular Visitor®(SPG). For extra data, please go to our web site at www.marriott.com, and for the most recent firm information, go to www.marriottnewscenter.com. As well as, join with us on Fb and @MarriottIntl on Twitter and Instagram.