Marriott CEO: Technology Is the Biggest Risk in the Starwood Merger
Photo Credit: Marriott CEO Arne Sorenson speaking October 4, 2016. A very global brand, Marriott's revenue per available rooms performance surpassed expectation in many regions of the world. Marriott
Skift Take
We'll definitely be keeping our eye on what develops as far as Marriott's decisions for its reservations and loyalty platforms going forward. But we're still not so convinced they're keeping all 30 of those brands over the long term.
Boosted by its $13.3-billion acquisition of Starwood Hotels & Resorts in September 2016, Marriott International has demonstrated strong global performance in its first quarter results with Starwood on board.
The Bethesda, Maryland-based company, now the world's largest hotel company, beat Wall Street's expectations both in terms of revenue and in earnings, posting earnings per share of $1.01 and total revenues of $5.56 billion, a 47.7 percent increase from the same period last year when Starwood wasn't yet part of the company.
Net income was $365 million, up 67 percent from the same period last year. Marriott's base management and franchise fees also grew significantly from last year's $200 million to $629 million this year, thanks to the Sept. 23 acquisition of Starwood for some $13.3 billion. Marriott expects to collect anywhere from $3.21 billion to $3.23 billion in fee revenues for the full year in 2017.
Global revenue per available room (RevPAR), a performance metric
