Marriott International is celebrating what it called a “year of firsts” in 2013.
The company achieved a 9.6% increase in net profits last year, to US$626 million, and Marriott’s president & CEO, Arne Sorenson, said the result was driven by strong hotel performance and management fees.
“2013 was a year of firsts. Strong revPAR growth and new hotels drove Marriott’s fee revenue to a record US$1.5 billion. We signed contracts with owners and franchisees for 67,000 new rooms, the most productive year in our history averaging more than one hotel every day. Our development pipeline reached a record 195,000 rooms,” Sorenson said.
He added that group revenue already on the books for 2014 is running more than 4% higher than 2013 levels, with room rates expected to rise about 5% this year.
“For 2014, we expect worldwide system-wide revPAR to increase 4-6%. With our strong development pipeline and the anticipated addition of the Protea hotels in Africa, we expect rooms growth will accelerate to approximately 6% gross or roughly 5%, net of deletions,” Sorenson added.
Marriott’s global portfolio now comprises 3,916 properties with nearly 676,000 rooms, but this is expected to increase significantly with a pipeline of approximately 1,165 new hotels totalling 195,000 rooms.
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