Reported net income for Marriott International for the second quarter of 2018 closed at US610 million (AU$821.8 million), according to newly filed financial papers from the hotel giant.
The result comes as the company prepares for 18 August, when it will launch a unified front for its trio of loyalty programs Marriott Rewards, Ritz-Carlton Rewards and Starwood Preferred Guest. All three will retain their respective names until next year when it is expected all three will merge into one newly renamed loyalty interface.
Improved net revenue and RevPAR were among a number of highlights reported by Marriott, with particular emphasis applied to well-performing international markets outside its US heartland.
Marriott International saw a 5.7 per cent increase in RevPAR in markets outside of North America as opposed to 3.1 per cent within. This boost in foreign markets helped its global average close at 3.8 per cent.
Noteworthy was the strength of Marriott’s worldwide room pipeline which saw a company record 23,000 rooms across 142 properties added to its portfolio just in the second quarter, while 16 properties used the door in the other direction. This figure included nearly 3,000 rooms converted from management takeovers of rival brands and nearly 11,000 rooms added in foreign markets alone. Globally, the accommodation juggernaut had 466,000 rooms on the way, including more than 41,000 rooms approved but not yet set in stone through signed contracts.
Looking forward to the remainder of the year, Marriott International said it was expecting global RevPAR to improve 3-4 per cent worldwide, propped up by the strength of international markets which are expected to grow by between 5-6 per cent.
The company has anticipated adjusted EBITDA will climb between 5-8 per cent to US$870 million – an improvement of up to 13% over the result of US$826 million recorded the year prior.
Marriott International President and CEO Arne Sorenson said he was pleased with the group’s outcome for the half year.
“Our owners opened more than 82,000 rooms over the last 12 months, yielding net rooms growth of 5.7 percent. Over 40 percent of these gross room additions are located outside North America and more than one-third are in upper-upscale and luxury tiers,” Sorenson said.