Marriott targets 200 new hotels in 2011

By Lorraine Heller

- Last updated on GMT

Related tags: Marriott international, Hotel, Chief executive officer

Marriott added 32 new hotels to its global network in Q2 2011
Marriott added 32 new hotels to its global network in Q2 2011
The global hotel chain Marriott International says it plans to add 200 hotels to its portfolio in 2011 as it announces an increase in revenue and profits for its second quarter this year.

Marriott’s revenues totalled nearly $3bn in the 2011 second quarter compared to $2.8bn the previous year. RevPAR in its global operations increased by around 7 per cent in the period, while EBITDA increased 3 per cent to $287m.

According to chairman and chief executive officer J.W. Marriott, the group expects further growth in its property portfolio this year, with a particular focus on emerging markets.

“We expect to add over 200 hotels to our system in 2011, leveraging the hospitality and local know-how of our associates with our global size, systems, and guest loyalty programs,” he said.

“Emerging markets provide especially attractive opportunities. In the past five years, we have increased our hotel distribution in Brazil, Russia, India and China at a 12 per cent compound annual growth rate while tripling our development pipeline in those markets.

New Marriott hotels

During the second quarter Marriott added 32 new hotels to its global portfolio, translating to an additional 4,512 rooms, while 10 hotels (1,603) were removed from its brand. This places its current portfolio at 3,600 properties and timeshare resorts for a total of nearly 634,000 rooms.

Marriott expects to add approximately 35,000 rooms in 2011 as most hotels expected to open are already under construction or undergoing conversion from other brands.

The company currently has 635 properties under construction, awaiting conversion or approved for development.

Outlook

Looking forward, Marriott expects that third quarter systemwide RevPAR will increase 5 to 7 per cent.

Full year 2011 fee revenue could total $1,305m to $1,325m, an increase of 10 to 12 per cent, said the group.

Related topics: Business & Legislation, Hotel

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