Marriott International achieved a double-digit increase in profits in the third quarter of the year.
The US hotel giant generated net profits of US$160 million in the three months to 30 September 2013, up 12% year-on-year. Company revenues climbed 16% to US$3.16 billion, as global revPAR (revenue per available room) rose 4.8%, driven by a 3.4% rise in average daily rate (ADR). Marriott’s average global occupancy reached nearly 75% in the quarter – the highest in the last six years.
Arne Sorenson, president & chief executive officer of Marriott International, said the company has experienced a “solid quarter”.
“Room rates moved higher, in part due to an improving mix of business, contributing about three-quarters of the revPAR increase in the quarter, and the number of company-operated and franchised rooms in our portfolio rose 4% year-over-year,” Sorenson revealed.
“Owner demand for our brands continues to be robust. Our development pipeline increased for the fifth straight quarter and we’re on track to sign a record number of rooms in 2013. In Asia, we expect to open, on average, one hotel every eight days through 2016,” he added.
These new Asian openings will include five new properties in the fourth quarter of 2013 alone, in Delhi, Tokyo, Bengaluru, Chengdu and Tianjin.
Marriott added 44 new properties, comprising 6,580 rooms, to its worldwide portfolio in the third quarter, including Japan’s first Autograph Collection hotel, the Prince Sakura Tower Tokyo, and the London Edition. These openings have boosted the company’s global portfolio to 3,883 properties, with a total inventory of more than 670,000 rooms.
The company’s revPAR growth last quarter was driven by hotels in Latin America and the Caribbean, which jumped 8.6% to an average of US$137.62. RevPAR in at Marriott’s North American properties rose 5.5% to US$117.46, while Asia Pacific increased 2.8% to US$97.97 and Europe edged up 0.5% to US$136.27. The Middle East & Africa region however, experienced a 12.7% slump in revPAR, to just US$66.03.