Marriott International, a leading hotel operator, projects a slowdown in revenue per available room (RevPAR) growth from 2023 to 2025. While the company initially anticipated a robust 12% to 14% growth rate in 2023, it now expects a more modest increase of 3% to 6% during that period. This adjustment reflects the cooling off of the travel boom following the pandemic.
Additionally, Marriott plans to expand its room inventory by adding 230,000 to 270,000 net rooms over the next three years. This represents a compound annual growth rate of 5% to 5.5%. In 2023 alone, the company aims to augment its room tally by 6.4% to 6.7%.
To provide further insights into its roadmap, Marriott will host an analyst event later this week, unveiling its comprehensive three-year plan.
In terms of financial outlook, Marriott is targeting a year-over-year adjusted earnings growth of 25% to 29% for this year. The company anticipates a two-year compound annual growth rate of 10% to 15%, resulting in adjusted earnings of $10.10 to $11.45 per share by 2025. This aligns with the expectations of analysts, who forecasted $10.83 per share, according to FactSet.
Marriott is committed to delivering shareholder value through dividend payments totaling $1.9 billion to $2.0 billion until 2025. Simultaneously, the company plans to repurchase $9.8 billion to $11.6 billion worth of stock.
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