Marriott Plans to Build 1,700 New Hotels in Three Years

Marriott International has presented a three-year growth plan, which includes the opening more than 1,700 hotels around the world.

At a meeting with institutional investors and security analysts at the New York Marriott Marquis, the company said it planned plan to add between 275,000 and 295,000 rooms by 2021, supported by the strength of its record 478,000-room pipeline, including roughly 214,000 rooms already under construction.

Marriott argued its new room openings during this period could contribute $400 million in fee revenue in 2021 and $700 million annually when stabilized.

The company’s three-year growth plan assumes, but does not forecast, comparable hotel revenue per available room growth of one and three percent, compounded annually.

Given the assumptions for its three-year plan, the company said it hoped to report diluted earnings per share of $7.65 to $8.50 by 2021. This is a compound growth rate of 11 to 15 per cent over 2018 adjusted results.

Shareholders could see $1.9 to $2 billion in dividends, assuming a continued 30 per cent pay-out ratio, and $7.6 to $9 billion in share repurchases over the three-year period, Marriott added.