Marriott International, Inc. (NASDAQ: MAR) reported its first quarter financial results before the market open on Friday. The Company beat earnings estimates, however, its flat revenue was just shy of analysts’ expectations.
For the first quarter, Marriott reported earnings of USD 1.41 per share on revenue of USD 5.01 Billion. Marriott surpassed the Street’s forecast by 5.22%, but fell short of USD 5.11 Billion revenue expectations.
First quarter comparable systemwide RevPAR rose by 1.1% worldwide, 1.9% outside of North America and 0.8% in North America.
Worldwide comparable company-operated house profit margins were flat during the quarter, reflecting solid cost controls and synergies from the Starwood acquisition offset by the impact of the Company’s RevPAR and higher wages.
House profit margins for comparable company‐ operated properties outside North America decreased 30 basis points and North American comparable company‐operated house profit margins increased 30 basis points in the first quarter.
The addition of 19,000 rooms helped drive Marriott’s stronger earnings for the quarter. Moreover, the Company also converted 3,000 rooms from competitor brands and approximately 8,000 rooms in international markets, leading to a net room increase of 5.3%. At the end of the quarter, Marriott had 475,000 rooms, 3% higher compared to the same quarter last year.
For the second quarter, Marriott expects comparable system wide RevPAR to increase by 1% to 2% in North America and 2% to 4% outside of North America. On a global scale, the Company expects RevPAR to grow between 1% to 3%.
Furthermore, Marriott expects diluted earnings in the range between USD 1.52 to USD 1.58 per share, a 9% to 12% decline compared to earnings of USD 1.73 last year. Marriott’s second quarter earnings estimate includes a USD 119 Million pre-tax of asset sales gain in gains and other income, net and equity in earnings.
For the full year 2019, Marriott expects comparable systemwide RevPAR to increase 1 to 3% in North America, 2 to 4% outside North America, and 1 to 3% worldwide.
The Company anticipates full year diluted earnings between USD 5.97 to USD 6.19, flat to down 4%from 2018 earnings of USD 6.21.