Marriott International told security analysts
and institutional investors in New York this week, that, assuming
RevPAR growth scenarios of 5 to 9% compounded annually over the
next three years, diluted earnings per share (EPS) could
approximate $1.90 to $2.75 by 2013, well above the highest
earnings per share (EPS) achieved during Marriott’s most recent
peak earnings year of 2007.
The company will say that total fee revenue
could range from $1.57 billion to $1.87 billion and incentive
management fees could nearly double through 2013 from 2010
estimated levels, ranging from $285 million to $440 million under
those same RevPAR scenarios.
The company said it also expects to add at least 80,000 to
90,000 hotel rooms to its portfolio from 2011 through 2013 with
additional opportunities for 22,000 rooms to open in Europe and
Asia during that same period.
Marriott has plans to adapt and
expand current brands, such as Courtyard and Fairfield, to meet
the growing needs of customers in markets worldwide. The company
will also be expanding its new brands outside of the United
States, including EDITION, which just opened its first hotel on
Waikiki Beach in Hawaii, and the Autograph Collection.
J.W. Marriott, Jr., chairman and chief executive
officer of the company, said, “We are on the threshold of
extraordinary growth for our company. As we look ahead over three
years, Marriott is poised to deliver substantial gains in bottom
line results, as well as meaningful returns to hotel owners and
shareholders, as our industry-leading portfolio of brands both
recovers from the recent recession and grows worldwide.”
According to the company, having reduced net
debt by almost $1.5 billion since the end of 2008, Marriott has
already reached its targeted debt levels. The company says that it
could invest $2.3 to $2.7 billion over the next
three years and return between $3.3 billion and $5.3 billion to
shareholders from 2011 through 2013 through dividends and share
repurchases, while still maintaining its investment grade bond
rating.
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