Earnings by 2013 Could Reach New Highs; Approximately $3 to $5 Billion Could Be Returned to Shareholders Over Three Years
While highlighting its significant market opportunities and competitive advantages, Marriott International will tell security analysts and institutional investors in New York today, that, assuming growth scenarios of Revenue Per Available Room (RevPAR) of 5 to 9 percent compounded annually over the next three years, diluted earnings per share (EPS) could approximate $1.90 to $2.75 by 2013, well above the highest earnings per share (EPS) achieved during Marriott’s most recent peak earnings year of 2007. [Picture: The Waikiki EDITION.]
The company will say that total fee revenue could range from $1.57 billion to $1.87 billion and incentive management fees could nearly double through 2013 from 2010 estimated levels, ranging from $285 million to $440 million under those same RevPAR scenarios.
The company expects to add at least 80,000 to 90,000 hotel rooms to its portfolio from 2011 through 2013 with additional opportunities for 22,000 rooms to open in Europe and Asia during that same period. Marriott has plans to adapt and expand current brands, such as Courtyard and Fairfield, to meet the growing needs of customers in markets worldwide. The company will also be expanding its new brands outside of the United States, including EDITION, which just opened its first hotel on Waikiki Beach in Hawaii, and the Autograph Collection. [Picture: Courtyard Mumbai International Airport]
J.W. Marriott, Jr., chairman and chief executive officer of the company, said, “We are on the threshold of extraordinary growth for our company. As we look ahead over three years, Marriott is poised to deliver substantial gains in bottom line results, as well as meaningful returns to hotel owners and shareholders, as our industry-leading portfolio of brands both recovers from the recent recession and grows worldwide.”
According to the company, having reduced net debt by almost $1.5 billion since the end of 2008, Marriott has already reached its targeted debt levels. The company will say that it assumes it will invest $2.3 to $2.7 billion over the next three years. The company could return between $3.3 billion and $5.3 billion to shareholders from 2011 through 2013 through dividends and share repurchases, while still maintaining its investment grade bond rating. As of October 21, 2010, the company has resumed open market share repurchases, making modest repurchases to date.
J.W. Marriott, Jr., chairman and chief executive officer of the company, said, “We are on the threshold of extraordinary growth for our company. As we look ahead over three years, Marriott is poised to deliver substantial gains in bottom line results, as well as meaningful returns to hotel owners and shareholders, as our industry-leading portfolio of brands both recovers from the recent recession and grows worldwide.”
According to the company, having reduced net debt by almost $1.5 billion since the end of 2008, Marriott has already reached its targeted debt levels. The company will say that it assumes it will invest $2.3 to $2.7 billion over the next three years. The company could return between $3.3 billion and $5.3 billion to shareholders from 2011 through 2013 through dividends and share repurchases, while still maintaining its investment grade bond rating. As of October 21, 2010, the company has resumed open market share repurchases, making modest repurchases to date.
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