Global Q2 income totalled US$192m, and revenue per available room (revPAR) went up 5.8 per cent – 6 per cent in North America and 4.6 per cent in the rest of the world.
These results led the firm to forecast further comparable growth rates for the third quarter, at about 6 to 8 per cent in North America, 4 to 6 per cent outside North America and 5.5 to 7.5 per cent worldwide.
Strong demand
Arne M. Sorenson, president and CEO of Marriott International, said, “Results in the quarter exceeded our expectations as worldwide revPAR increased nearly 6 per cent.
“With strong franchisee and owner demand for our brands, we are on pace to have another record development year in 2014 with contracts for roughly 295 hotels with nearly 46,000 rooms already signed, or nearly a dozen hotels per week, and well ahead of our 2013 first half signings pace. At the end of the second quarter, our development pipeline reached a record 215,000 rooms.
“We are bullish on the remainder of 2014. Strong revPAR growth in the second quarter combined with very strong group bookings for the third quarter give us the confidence to increase our full year 2014 North American and worldwide revPAR growth guidance to 5 to 7 per cent.
“We are also increasing our expectations for gross room additions to 7 per cent, 6 per cent net, based on strong development interest in our brands.”
Development pipeline
At the end of the second quarter, the company’s worldwide development pipeline increased to nearly 1,300 properties (215,000 rooms), including more than 213 properties (30,000 rooms) approved, but not yet subject to signed contracts.
Marriott added 162 new properties (18,729 rooms) to its worldwide portfolio in Q2 2014, while nine properties (1,134 rooms) left the brand.
For the full year 2014, the company expects its portfolio of rooms to increase by approximately 6 per cent.