Friday, June 24, 2022

Marriott International adds over 86,000 rooms in 2021

Marriott International, a global hospitality company, added more than 86,000 rooms globally during 2021, including approximately 43,000 rooms in international markets and a total of over 18,000 conversion rooms, said its CEO. Net rooms grew 3.9 per cent from year-end 2020, added Anthony Capuano, highlighting that the group signed approximately 92,000 rooms in 2021, of which more than 50,000 were in international markets and more than 40 percent were in the upper upscale and luxury tiers.

“With our momentum around conversions and our industry-leading pipeline, we are bullish about our ability to increase our footprint over the next several years. For 2022, we expect gross rooms growth approaching 5 percent and deletions of 1 to 1.5 percent, resulting in anticipated net rooms growth of 3.5 to 4 per cent,” he added.

“The 2021 fourth quarter capped off a year that showed the incredible resilience of people’s desire to travel and the appeal of our broad portfolio of 30 global brands. We experienced significant progress in global RevPAR recovery in 2021 despite the emergence of new variants and ongoing headwinds from the global pandemic,” Capuano explained.

“By the fourth quarter, global RevPAR was 19 per cent below 2019 levels, a 40-percentage point improvement from the decline in the first quarter of the year. Global average daily rate (ADR) nearly recovered to pre-pandemic levels in the 2021 fourth quarter, while occupancy came in at 58 percent, down 12 percentage points versus 2019. Leisure demand continued to shine in the fourth quarter, with slower, yet continued improvement in business transient and group demand.

“Each of our regions saw meaningful continued RevPAR recovery in the fourth quarter compared to the third quarter, with the exception of Greater China, where recovery stalled due to their zero COVID policy.

“Compared to 2019 levels, our international hotels posted a 28-per cent RevPAR decline in the fourth quarter, a 12-percentage point improvement from the third quarter. While Omicron caused a temporary setback in global demand recovery in January, especially for business transient and group travel, new bookings across customer segments have rebounded to pre-Omicron levels. We are optimistic that the global recovery will progress meaningfully throughout 2022,” he added.

Marriott’s reported operating income totaled $635 million in the 2021 fourth quarter, compared to 2020 fourth quarter reported operating loss of $128 million. Reported net income totaled $468 million in the 2021 fourth quarter, compared to 2020 fourth quarter reported net loss of $164 million. Reported diluted earnings per share (EPS) totaled $1.42 in the quarter, compared to reported diluted loss per share of $0.50 in the year-ago quarter. Adjusted operating income in the 2021 fourth quarter totaled $578 million, compared to 2020 fourth quarter adjusted operating income of $148 million. Adjusted operating income in the 2020 fourth quarter excluded impairment charges of $44 million. Fourth quarter 2021 adjusted net income totaled $430 million, compared to 2020 fourth quarter adjusted net income of $39 million. Adjusted diluted EPS in the 2021 fourth quarter totaled $1.30, compared to adjusted diluted EPS of $0.12 in the year-ago quarter.

The company added 120 properties (20,440 rooms) to its worldwide lodging portfolio during the 2021 fourth quarter, including over 3,500 conversion rooms and approximately 10,000 rooms in international markets. Twenty-three properties (4,955 rooms) exited the system during the quarter. At year end, Marriott’s global lodging system totaled 7,989 properties, with more than 1,479,000 rooms.

At year end, the company’s worldwide development pipeline totaled 2,831 properties with roughly 485,000 rooms, including 1,008 properties with more than 202,000 rooms under construction and 98 properties with approximately 19,000 rooms approved for development, but not yet subject to signed contracts.

In the 2021 fourth quarter, worldwide RevPAR increased 124.5 per cent (a 124.9 percent increase using actual dollars) compared to the 2020 fourth quarter. RevPAR in the US & Canada increased 143.6 per cent (a 143.9 per cent increase using actual dollars), and RevPAR in international markets increased 83.3 per cent (an 84 per cent increase using actual dollars).

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