How Marriott plans to collect an extra $400M in revenue a year

Company plans to add up to 295,000 new rooms by 2021

TRD NATIONAL /
Mar.March 18, 2019 10:00 AM

Marriott expects to add between 275,000 and 295,000 rooms to its portfolio by 2021. (Credit: Getty Images)

Marriott is in expansion mode. The hotel giant plans to open more than 1,700 hotels over the next three years.

The hotel company expects to add between 275,000 and 295,000 rooms to its portfolio by 2021, according to the Wall Street Journal. It could take in $400 million in fee revenue from the new rooms that year, and up to $700 million annually when stabilized.

The plan assumes that comparable hotel revenue per available room (RevPar) will rise by between 1 and 3 percent.

Marriott, which owns the Ritz-Carlton and St. Regis brands, also said it could have earnings between $7.65 and $8.50 a share by 2021 and between $7.6 and $9 billion in stock buybacks over the next three years. The company, led by CEO Arne Sorenson, also said it would return $11 billion to shareholders by 2021.

Manhattan’s hotel market turned a corner last year after spending years being weighed down by new rooms pouring in, with revenue per available room growing for the first time in three years by 3.4 percent. [WSJ]Eddie Small


Related Articles

arrow_forward_ios
Sharif El-Gamal (Photo by Desiree Navarro/WireImage)

WATCH: Developer Sharif El-Gamal has Covid-19. But he’s one of the lucky ones

Airbnb CEO Brian Chesky (Photo by Bryan Bedder/Getty Images for Airbnb)

Airbnb suspends marketing, cuts executive pay in half

Knotel CEO Amol Sarva 

Another huge round of layoffs for Knotel

Miki Naftali, Steven Witkoff and Ryan Freedman

TRD Talks: How developers are contending with coronavirus

(Credit: Pixabay)

REIT declines outpace stock market amid shutdowns nationwide

Governor Andrew Cuomo (Photo by Spencer Platt/Getty Images; iStock)

Cuomo’s foreclosure, mortgage moratorium has no teeth

The Williamsburg Hotel at 96 Wythe Avenue and from top: Benefit Street Partners' managing director Micah Goodman, receiver Constantino Sagonas and Heritage Equity Partners’ Toby Moskovits (Credit: Google Maps)

Williamsburg Hotel dispute escalates as pandemic raises stakes

From left: Realogy's Ryan Schneider, Cushman & Wakefield's Brett White and Newmark Knight Frank's Barry Gosin (Credit: iStock)

Brokerage stocks plunge amid market turmoil

arrow_forward_ios
Loading...