Company expects to earn $675 million from hotel rooms added to its system in 2017 through 2019
Marriott International unveiled its three-year growth plan, which includes opening about one hotel every 14 hours around the world, at its meeting with security analysts and institutional investors in New York.
Marriott will outline plans to accelerate its growth, adding 285,000 to 300,000 rooms worldwide by 2019, the hotel chain said.
The expansion would allow the company to further capitalize on its loyalty programs—Marriott Rewards, which includes The Ritz-Carlton Rewards, and Starwood Preferred Guest. The programs now have over 100 million members—growing at a record pace of roughly one million new members a month since the company’s historic acquisition of Starwood Hotels and Resorts in September 2016.
In its plan, the company expects to earn $675 million in stabilized fees from hotel rooms added to its system in 2017 through 2019.
In addition, non-property related franchise fees, largely credit card branding fees, should increase by $100 million during the three years. The plan assumes, but does not forecast RevPAR (Revenue per Available Room) growth of one to three percent compounded annually through 2019.