Marriott expects to add between 275,000 and 295,000 rooms to its portfolio by 2021. (Credit: Getty Images)
Marriott is in expansion mode. The hotel giant plans to open more than 1,700 hotels over the next three years.
The hotel company expects to add between 275,000 and 295,000 rooms to its portfolio by 2021, according to the Wall Street Journal. It could take in $400 million in fee revenue from the new rooms that year, and up to $700 million annually when stabilized.
The plan assumes that comparable hotel revenue per available room (RevPar) will rise by between 1 and 3 percent.
Marriott, which owns the Ritz-Carlton and St. Regis brands, also said it could have earnings between $7.65 and $8.50 a share by 2021 and between $7.6 and $9 billion in stock buybacks over the next three years. The company, led by CEO Arne Sorenson, also said it would return $11 billion to shareholders by 2021.
Manhattan’s hotel market turned a corner last year after spending years being weighed down by new rooms pouring in, with revenue per available room growing for the first time in three years by 3.4 percent. [WSJ] – Eddie Small