Reuters: Marriott Revenue slips [again]
Nov 5, 2018, 2:48 pm
#1
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Reuters: Marriott Revenue slips [again]
While the hospitality business booms worldwide, Marriott reports declining revenue (after declines in the previous quarter)
While these aren't massive declines, you have to look at them against the backdrop of the fastest growing global economy and hospitality industry in over a decade. Newsflash: treating your best customers like crap is not an effective long-term strategy. Nor are poorly planned and executed IT overhauls.
Nov 5 (Reuters) - U.S. hotel chain Marriott International Inc's <MAR.O> quarterly revenue slipped on Monday, as fewer people booked its rooms across the world. The company's revenue fell to $5.05 billion in the third quarter from $5.08 billion a year earlier. Net income dropped to $483 million in the quarter ended Sept. 30 from $485 million. [nPn8JgK7ma]
While these aren't massive declines, you have to look at them against the backdrop of the fastest growing global economy and hospitality industry in over a decade. Newsflash: treating your best customers like crap is not an effective long-term strategy. Nor are poorly planned and executed IT overhauls.
Nov 5, 2018, 4:10 pm
#5
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3Q2018 Earnings Press Release
For the 2018 fourth quarter, Marriott expects comparable systemwide RevPAR on a constant dollar basis in North America will increase roughly 1 percent, reflecting an estimated 110-basis-point headwind to last year's hurricane relief efforts. Compared to the estimate the company provided on August 6, this fourth quarter RevPAR guidance for North America reflects some uncertainty related to transient demand weakness the industry experienced in September. The company expects fourth quarter comparable systemwide RevPAR on a constant dollar basis will increase 5 to 6 percent outside North America and roughly 2 percent worldwide.
Nov 5, 2018, 4:18 pm
#6
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I'd like to read the 10Q but the report doesn't look as bad as I expected. Basically, franchise fees are up, EBITDA is up, gross revenue is at the high end of guidance, etc.
Marriott International Reports Third Quarter 2018 Results | Marriott News Center
Stock dropped after market based on projections. It does seem like they had a problem with reduced bookings but increased REVPAR. I'll be interested if the reports attributes any of the reduced bookings to the website debacle,
Marriott International Reports Third Quarter 2018 Results | Marriott News Center
Stock dropped after market based on projections. It does seem like they had a problem with reduced bookings but increased REVPAR. I'll be interested if the reports attributes any of the reduced bookings to the website debacle,
Nov 5, 2018, 5:43 pm
#8
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Marriott International Reports Third Quarter 2018 Results Marriott News Center
"HIGHLIGHTS
Cheers
"HIGHLIGHTS
- Third quarter reported diluted EPS totaled $1.38, a 7 percent increase from prior year results. Third quarter adjusted diluted EPS totaled $1.70, a 62 percent increase over third quarter 2017 adjusted results. Adjusted results exclude merger-relatedadjustments, cost reimbursement revenue, and reimbursed expenses;
- During the 2018 third quarter, EPS included $0.26 from gains on asset sales ($71 million pretax reflected in Gains and other income, net and Equity in earnings);
- Third quarter 2018 comparable systemwide constant dollar RevPAR rose 1.9 percent worldwide, 5.4 percent outside North America and 0.6 percent in North America;
- The company added more than 18,000 rooms during the third quarter, including over 1,500 rooms converted from competitor brands and approximately 10,000 rooms in international markets;
- At quarter-end, Marriott’s worldwide development pipeline increased to roughly 471,000 rooms, including nearly 50,000 rooms approved, but not yet subject to signed contracts;
- Third quarter reported net income totaled $483 million, flat compared to prior year results. Third quarter adjusted net income totaled $598 million, a 51 percent increase over prior year adjusted results;
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $900 million in the quarter, a 12 percent increase over third quarter 2017 adjusted EBITDA. Third quarter 2018 gross fee revenues totaled $932 million, a 13 percent increase from prior year gross fee revenues;
- Marriott repurchased 6.7 million shares of the company’s common stock for $841 million during the third quarter. Year-to-date through November 5, the company has repurchased 20.8 million shares for $2.7 billion"
Cheers
Nov 5, 2018, 7:38 pm
#9
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Interesting data ... clear decreases in occupancy in a booming economy although it may not be significant. On the other hand, clear increase in REVPAR.
Wish I could list to the conference call tomorrow ....
https://marriott.gcs-web.com/static-...a-d97d1752c578
Wish I could list to the conference call tomorrow ....
https://marriott.gcs-web.com/static-...a-d97d1752c578
Nov 5, 2018, 7:56 pm
#10
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- During the 2018 third quarter, EPS included $0.26 from gains on asset sales ($71 million pretax reflected in Gains and other income, net and Equity in earnings);
Also interesting that the stock is 7 dollars above the 52 week low. Most shares in the buyback appear to be above the current price so those are losers too and have artificially elevated the price.
Nov 5, 2018, 8:20 pm
#12
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Nov 5, 2018, 8:31 pm
#13
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I have been intentionally diverting business away from Marriott as a result of their horrific management of the merger. The second their website fails me I immediately move on to Hilton. No second chances. I estimate that Marriott has lost about $3K in business form me in the past three months as a result of their ineptitude.
Nov 5, 2018, 8:32 pm
#14
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I get a kick out of this line:
Um yeah, when the system is working--a rare event since August 18.
Looking at the tape, the revenue miss only accounted for part of the hit on the AH stock price. The stock really dropped when the lowered guidance hit the wires. Markets hate lowered guidance.....
On August 18, we integrated our loyalty programs creating one powerful, unified program, allowing our 120 million members to earn, book, and redeem across more than 6,700 hotels.
Looking at the tape, the revenue miss only accounted for part of the hit on the AH stock price. The stock really dropped when the lowered guidance hit the wires. Markets hate lowered guidance.....