Marriott International Inc. reiterated on Wednesday its 2023 outlook for adjusted earnings-per-share growth, as part of the hotel operator’s three-year growth plan it outlined at its security analyst meeting.
said full-year EPS could rise 25% to 29% from a year ago, which is in line with the guidance provided in August.
The current FactSet consensus is for EPS of $8.62, which implies 28.8% growth from 2022 adjusted EPS of $6.69.
Marriott said it expects adjusted EPS to increase at a compounded annual growth rate (CAGR) of 10% to 15% for the next two years, with EPS reaching $10.10 to $11.45 in 2025. That surrounds the current FactSet consensus of $10.83.
Marriott’s stock, which closed Tuesday at a two-month low, was still inactive in premarket trading. It has run up 28.8% year to date, while the S&P 500 index
has gained 11.3%.
The company also said it will outline its plan to add 230,000 to 270,000 rooms through 2025, representing a three-year CAGR of 5.0% to 5.5%, as it grows its portfolio of rooms to nearly 1.8 million.
Revenue per available room (RevPAR) is projected to increase at a two-year CAGR of 3% to 6% to 2025, after rising 12% to 14% in 2023.
“With global travel poised for continued robust growth, our strategy is to deliver the best brands and experiences for consumers, to attract and retain the most loyal guests and to be in more places around the world,” Chief Executive Anthony Capuano said.
He also said the company plans to bolster its technology platform and its loyalty program to help fuel growth.
“As consumers continue to prioritize travel and experiences, we are focused on transforming our technology platform while leveraging our powerful revenue engines and our leading Marriott Bonvoy loyalty program to connect people through the power of travel,” Capuano said.
The company said it will continue to emphasize its luxury and leisure hotel offerings. It currently has nearly 500 luxury hotels, or 17% of the market, and has another 225 luxury properties in the pipeline.
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