Marriott’s third-quarter numbers down after Starwood acquisition

By Kevin Zimmerman

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Marriott International reported third-quarter net income of $70 million, compared with $210 million in the third quarter of last year. Third-quarter reported diluted earnings per share totaled 26 cents, while adjusted diluted EPS came in at 91 cents, respective declines of 67 percent and 17 percent.

Adjusted third-quarter results exclude merger-related costs and eight days of Starwood Hotels & Resorts Worldwide’s results in the quarter; overall numbers were impacted by the $228 million in charges Marriott incurred in closing its $13.3 billion acquisition of Stamford-based Starwood Hotels & Resorts.

For the three months ended Sept. 30, Marriott and Starwood together added more than 17,600 rooms, including approximately 1,600 rooms converted from competitor brands and nearly 8,600 rooms in international markets; Marriott’s worldwide development pipeline increased to nearly 420,000 rooms, including more than 46,000 rooms approved, but not yet subject to signed contracts. The development pipeline for Legacy-Starwood brands alone totaled nearly 130,000 rooms, including roughly 12,000 rooms approved but not yet subject to signed contracts.

Headquartered in Bethesda, Md., Marriott said it anticipates 6 percent worldwide net room additions in 2017.

Marriott recently announced plans to eliminate “approximately 163 employees at Starwood’s Stamford headquarters between Dec. 31 and Jan. 13, 2017, though it has indicated it will continue its presence in that city. About 600 people now work in Stamford.

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