Upcoming AWS Coverage on Hyatt Hotels Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 24, 2017 / Active Wall St. announces its post-earnings coverage on Marriott International, Inc. (NASDAQ: MAR). The Company announced its first quarter fiscal 2017 financial results on May 08, 2017. The hotel conglomerate beat top- and bottom-line expectations. Register with us now for your free membership at:
One of Marriott International's competitors within the Lodging space, Hyatt Hotels Corp. (NYSE: H), reported on May 04, 2017, its Q1 2017 financial results. AWS will be initiating a research report on Hyatt Hotels in the coming days.
Today, AWS is promoting its earnings coverage on MAR; touching on H. Get our free coverage by signing up to:
For the three months ended March 31, 2017, Marriott reported revenue figures of $5.56 billion, up 48% compared to revenue of $3.77 billion in Q1 2016. The Company's revenue numbers topped analysts' consensus estimates of $4.91 billion.
For Q1 2017, Marriott's Base management and franchise fees totaled $629 million compared to $422 million in Q1 2016, driven by increase in these fees which was primarily attributable to the Starwood acquisition, higher RevPAR, and unit growth. The Company's reported quarter worldwide incentive management fees increased to $153 million compared to $101 million in the year ago same quarter.
Marriott's owned, leased, and other revenue, net of direct expenses, totaled $81 million in Q1 2017 compared to $38 million in Q1 2016. The Company's depreciation, amortization, and other expenses totaled $65 million in the reported quarter versus $31 million in the year ago comparable quarter. The y-o-y increase was primarily attributable to the Starwood acquisition, including the effect of purchase accounting.
For Q1 2017, Marriott's merger-related costs and charges totaled $51 million compared to $8 million in the year ago same quarter. Included in the merger-related costs and charges are $21 million of severance and retention costs, $23 million of integration costs and $7 million of transaction costs. The Company's interest expense, net, totaled $63 million in Q1 2017 compared to $41 million in Q1 2016. The increase largely reflects a higher commercial paper balance and related interest rate, higher Senior Note balances due to debt assumed in the Starwood acquisition, which the Company subsequently exchanged for new Marriott Senior Notes, and net higher interest on Senior Notes due to issuances and maturities.
For Q1 2017, Marriott's adjusted EBITDA totaled $750 million, a 64% increase, over Q1 2016 adjusted EBITDA of $458 million.
Marriott's reported net income totaled $365 million in Q1 2017, a 67% increase over Q1 2016 net income of $219 million. Reported diluted earnings per share (EPS) were $0.94 in the quarter, up 11% from diluted EPS of $0.85 in the year ago corresponding quarter. The Company's Q1 2017 adjusted net income totaled $395 million, up 36% over Q1 2016 combined net income of $290 million. The Company's adjusted diluted EPS in the reported quarter totaled $1.01, up 38% from combined diluted EPS of $0.73 in the year ago same quarter. Marriott's earnings numbers topped Wall Street's estimates of $0.90 per share.
Selected Performance Information
During Q1 2017, Marriott added 103 new properties, or a total of 17,183 rooms, to its worldwide lodging portfolio, including the Le Méridien Visconti Rome, the Fairfield by Marriott Kathmandu in Nepal, and the Sheraton Annaba Hotel in Algeria. During the reported quarter, twenty-two properties, or 4,376 rooms, exited the Company's system. At quarter-end, Marriott's lodging system encompassed 6,161 properties and timeshare resorts with nearly 1,203,000 rooms.
At the end of Q1 2017, Marriott's worldwide development pipeline totaled 2,536 properties with more than 430,000 rooms, including 917 properties with approximately 166,000 rooms under construction and 207 properties with roughly 36,000 rooms approved for development, but not yet subject to signed contracts.
In Q1 2017, Marriott's worldwide comparable systemwide constant dollar RevPAR increased 3.1% on a y-o-y basis. The Company's North American comparable systemwide constant dollar RevPAR increased 3.1%, while international comparable systemwide constant dollar RevPAR grew 3.2% during the same period.
Marriott's worldwide comparable Company-operated house profit margins increased 100 basis points in the reported quarter largely due to improved productivity and food and beverage margins. House profit margins for comparable Company-operated properties outside North America rose 90 basis points, while North American comparable Company-operated house profit margins increased 100 basis points in Q1 2017.
At quarter-end, Marriott's total debt was $8.47 billion and cash balances totaled $738 million compared to $8.51 billion in debt and $858 million of cash at year-end 2016.
Marriott is forecasting Q2 2017 total fee revenue in the range of $820 million to $835 million. The Company is expecting FY17 fee revenue to be in the band of $3.23 billion and $3.21billion.
On Tuesday, May 23, 2017, the stock closed the trading session at $105.49, climbing 1.22% from its previous closing price of $104.22. A total volume of 2.87 million shares have exchanged hands, which was higher than the 3-month average volume of 2.62 million shares. Marriott's stock price surged 12.80% in the last month, 20.31% in the past three months, and 36.75% in the previous six months. Furthermore, since the start of the year, shares of the Company have gained 27.59%. The stock is trading at a PE ratio of 38.08 and has a dividend yield of 1.25%.
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