|Ritz-Carlton Hong Kong// (c) 2011 The Ritz-Carlton Hotel Company, LLC|
Marriott International, Inc. reported second quarter 2011 results, exceeding the company’s prior year results. Second quarter 2011 net income totaled $135 million, a 13 percent increase compared to second quarter 2010 net income.
J.W. Marriott, Jr., Marriott International chairman and chief executive officer, said, “Around the world, we’ve never been more excited about our opportunities. Now in 71 countries, the Marriott International brand portfolio, already the broadest in the industry, is growing rapidly. We expect to add over 200 hotels to our system in 2011, leveraging the hospitality and local know-how of our associates with our global size, systems, and guest loyalty programs. Emerging markets provide especially attractive opportunities. In the past five years, we have increased our hotel distribution in Brazil, Russia, India and China at a 12 percent compound annual growth rate while tripling our development pipeline in those markets.
“As the world’s economy continues to recover, results at prime destination hotels from Europe to Asia show our appeal with customers. In the U.S., strengthening lodging demand and limited supply growth are contributing to higher occupancies and room rate growth. While our market share in the U.S. is currently 10 percent, Marriott International brands accounted for about a quarter of new industry openings and conversions over the last 12 months, reflecting the strength of our portfolio and preference for our brands.
“We continue to generate substantial cash flow and repurchase stock, returning over $700 million to shareholders through share repurchases and dividends year-to-date. Clearly, we have plenty of reason for optimism," Marriott said.
For the 2011 second quarter, REVPAR for worldwide comparable systemwide properties increased 6.8 percent (a 7.7 percent increase using actual dollars).
International comparable systemwide REVPAR rose 7.3 percent (an 11.9 percent increase using actual dollars), including a 5.8 percent increase in average daily rate (a 10.4 percent increase using actual dollars) in the second quarter of 2011. Excluding the Middle East and Japan markets, international comparable systemwide constant dollar REVPAR rose 12.4 percent (a 17.5 percent increase using actual dollars).
In North America, comparable systemwide REVPAR increased 6.6 percent in the second quarter of 2011, including a 3.1 percent increase in average daily rate. While hotels in Washington, D.C. continued to reflect weaker demand associated with a shorter Congressional calendar and concerns regarding government budgets, most North American markets reflected both strong demand increases and modest supply growth.
Excluding the Washington, D.C. market, North American comparable systemwide REVPAR rose 7.1 percent in the quarter. REVPAR for comparable systemwide North American full-service and luxury hotels (including Marriott Hotels & Resorts, The Ritz-Carlton and Renaissance Hotels) increased 6.0 percent in the second quarter with a 4.0 percent increase in average daily rate.
REVPAR for comparable systemwide North American limited-service hotels (including Courtyard, Residence Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn & Suites) increased 7.2 percent in the second quarter with a 2.8 percent increase in average daily rate.
Marriott added 32 new properties (4,512 rooms) to its worldwide lodging portfolio in the 2011 second quarter, including the spectacular Ritz-Carlton Hong Kong and two Autograph hotels, The Lodge and Spa at Calloway Gardens in Pine Mountain, Georgia and Kessler Canyon in Colorado.
Ten properties (1,603 rooms) exited the system during the quarter. At quarter-end, the company’s lodging group encompassed over 3,600 properties and timeshare resorts for a total of nearly 634,000 rooms.
The company’s worldwide pipeline of hotels under construction, awaiting conversion or approved for development increased to 635 properties.