Marriott International is eyeing tremendous growth over the remainder of the decade, expecting to open at least one hotel every 14 hours around the world during the next three-year period.
The Bethesda, Maryland-based hotel giant unveiled an ambitious three-year growth plan Tuesday during a conference with security analysts and investors.
Marriott said it plans to add anywhere between 285,000 to 300,000 rooms worldwide by 2019. If it meets that goal, the company could yield a record $675 million in annual stabilized fees from the new rooms. What’s more, it anticipates non-property related franchise fees—largely comprised of credit card branding fees—to increase by $100 million during the next three years.
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Assuming RevPAR (Revenue per Available Room) growth of 1 to 3 percent compounded annually through 2019, the company could potentially see diluted earnings per share of $5.25 to $5.80 by 2019 and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) jump anywhere from 7 to 10 percent compounded.
Meanwhile, assuming a 30 percent payout ratio, shareholders could see $1.4 to $1.5 billion in dividends—and as much as $7.8 billion in share repurchases over the next three years.
Marriott’s loyalty programs are also growing at an impressive clip. Marriott Rewards includes The Ritz-Carlton Rewards and Starwood Preferred Guest (SPG); They recently surpassed 100 million collective members and have been adding approximately one million net new members per month since Marriott finalized its acquisition of Starwood last fall.
“We are more optimistic than ever about our future,” said Marriott president and CEO Arne Sorenson in a statement.
“Marriott has made a significant leap forward in distribution and scale with its once-in-a-generation acquisition of Starwood. With global travel estimated to increase at a 7 percent compounded rate over the next 10 years and international trips expected to top 1.8 billion by 2030, Marriott is well positioned to benefit given its strong global footprint now in 122 countries and territories and an unmatched portfolio of 30 lodging brands.”
READ MORE: Marriott to Add Over 100k Travel Experiences
Marriott currently boasts more than 8 percent of worldwide hotel rooms when taking into account both existing hotels and the signed new constructions.
Tuesday’s reveal also comes just two weeks after Marriott detailed its dramatic expansion plans for Europe at the 20th International Hotel Investment Forum in Berlin.
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