Marriott Hotels has raised its full-year RevPAR (revenue per available room) growth target to 14%-15% following a strong third quarter financial performance.
The global hotel giant reported an operating profit of $1.1bn for the quarter; up from $958m for the corresponding period last year. Net income rose from $630m to $752m.
Anthony Capuano, Marriott President and Chief Executive, said: “We are extremely pleased with our results in the quarter. Worldwide RevPAR grew 9% year over year, reflecting robust demand around the world. International RevPAR increased 22%, with particular strength in Asia Pacific. Both occupancy and rate contributed to global RevPAR gains in the third quarter, and cross-border travel continued to rise.
“In the US and Canada, RevPAR rose more than 4%, with many urban markets showing outsized growth. Group and business transient saw mid-single digit hotel revenue gains in the quarter, largely driven by rate increases. Leisure transient demand in the region has also remained solid, leading to 4% hotel revenue growth for the segment compared to the year-ago quarter.
“Given the meaningful benefits we deliver to owners, demand for our brands remains strong. Through the first three quarters of 2023, we’ve signed more than 100,000 organic rooms, including the MGM Resorts International deal, an impressive 60 percent increase compared to the same period last year. Even with 5% net rooms growth in the last four quarters, our development pipeline continues to grow. Of our record 557,000-room pipeline, 43% is under construction.
“With continued momentum in our business around the world, we are raising our full year 2023 worldwide RevPAR growth guidance to 14%-15% year over year and expect to return $4.3 billion to $4.5 billion to shareholders through share repurchases and dividends.”