Marriott International Reports Second Quarter 2015 Results
Marriott International, Inc. (NASDAQ: MAR) today reported second quarter 2015 results.
Second quarter 2015 net income totaled $240 million, a 25 percent increase over 2014 second quarter net income. Diluted earnings per share (EPS) in the second quarter totaled $0.87, a 36 percent increase from diluted EPS in the year-ago quarter. Second quarter 2015 results reflect a $41 million pretax gain ($25 million after-tax and $0.09 per diluted share) on the redemption of a preferred equity ownership interest and $22 million of pretax losses ($13 million after-tax and $0.04 per diluted share) on the expected disposition of real estate. Excluding these items, second quarter 2015 adjusted net income totaled $228 million and adjusted diluted EPS was $0.82. These two items were not included in the company’s April 29, 2015 second quarter forecasted EPS of $0.78 to $0.83.
Second quarter 2014 net income totaled $192 million and diluted EPS totaled $0.64. Second quarter 2014 results reflected $33 million pretax ($21 million after-tax and $0.07 per diluted share) of previously disclosed charges. Excluding those items, second quarter 2014 adjusted net income totaled $213 million and adjusted diluted EPS was $0.71. See page A-11 for the adjusted EPS calculations for the second quarters of 2015 and 2014.
Arne M. Sorenson, president and chief executive officer of Marriott International, said, “We were pleased with our results in the quarter. Our worldwide RevPAR grew over 5 percent and rooms growth increased more than 6 percent. With many hotels reporting peak occupancy rates, room rates continue to move higher.
“We opened over 20,000 rooms in the second quarter including 9,600 rooms in Canada from our acquisition of the Delta Hotels and Resorts brand. We see great growth potential for Delta around the world. In just the last two months, we have received inquiries regarding the possible conversion of more than 50 hotels in the U.S. and Canada to the Delta brand.
“At quarter-end, our worldwide development pipeline exceeded 1,500 hotels with more than 250,000 rooms, a new record. We have already reached our goal to have one million rooms open or under development nearly six months ahead of plan. We continue to expect to increase our open rooms distribution by 8 percent gross, 7 percent net, in 2015.
“As of today, we have returned nearly $1.5 billion to our shareholders through share repurchases and dividends in 2015. We expect to return more than $2.0 billion in 2015. Over the past 24 months, we have returned $3.4 billion to shareholders and have reduced our fully diluted weighted average share count by nearly 12 percent.”
Marriott added 101 new properties (20,289 rooms) to its worldwide lodging portfolio in the 2015 second quarter, including 37 properties (9,595 rooms) from the Delta transaction. Twelve properties (937 rooms) exited the system during the quarter. At quarter-end, the company’s lodging system encompassed 4,317 properties and timeshare resorts for a total of nearly 743,000 rooms.