Upcoming AWS Coverage on Hilton Worldwide Holdings Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 7, 2017 / Active Wall St. announces its post-earnings coverage on Marriott International, Inc. (NASDAQ: MAR). The Company announced its fourth quarter and fiscal 2016 earnings results on February 15, 2017. On September 23, 2016, Marriott completed its acquisition of Starwood Hotels & Resorts Worldwide (Starwood). The Hotel Company surpassed top- and bottom-line expectations. Register with us now for your free membership at:
One of Marriott International's competitors within the Lodging space, Hilton Worldwide Holdings Inc. (NYSE: HLT), reported on February 15, 2017, its Q4 and full year 2016 result. AWS will be initiating a research report on Hilton Worldwide in the coming days.
Today, AWS is promoting its earnings coverage on MAR; touching on HLT. Get our free coverage by signing up to:
For the quarter ended December 31, 2016, Marriott's GAAP revenue jumped 47% to $5.46 billion compared to revenue of $3.71 billion in Q4 2015, and revenue numbers were above analysts' consensus of $4.96 billion.
For Q4 2016, Marriott's reported net income totaled $244 million, up 21% compared to Q4 2015 net income of $202 million. The Company's reported diluted earnings per share (EPS) were $0.62 in the reported quarter, a 19% drop from diluted EPS of $0.77 in the year-ago same quarter. The Company's Q4 2016 adjusted net income totaled $334 million, up 15% versus Q4 2015 combined net income of $291 million. The Company's adjusted diluted EPS in Q4 2016 totaled $0.85, up 20% compared to combined diluted EPS of $0.71 in the year-ago comparable quarter and also surpassed Wall Street's estimates of $0.84 per share for the reported quarter.
Marriott's Base management and franchise fees totaled $564 million in Q4 2016 compared to $373 million in the year ago corresponding quarter. Out of the $191 million y-o-y increase in fees, $174 million was related to Legacy-Starwood results in the quarter. The Company's Q4 2016 worldwide incentive management fees increased to $149 million compared to $81 million in the year earlier comparable quarter. The $68 million increase largely reflects Legacy-Starwood fees in the quarter.
Marriott's Owned, leased, and other revenue, net of direct expenses, totaled $169 million compared to combined revenue, net of expenses of $165 million in the year ago same quarter. The adjusted y-o-y increase largely reflects better results at owned and leased hotels, higher residential and credit card branding fees, partially offset by lower termination fees and the impact of Legacy-Starwood hotels previously sold.
The Company's Q4 2016 incentive management fees decreased to $149 million compared to combined fees of $150 million in Q4 2015. Despite a 70 basis point decrease in worldwide comparable Company-operated actual dollar RevPAR in the reported quarter, incentive fees were roughly flat due to higher property-level margins.
For Q4 2016, Marriott's adjusted EBITDA totaled $756 million, up 11% over Q4 2015 combined adjusted EBITDA of $682 million. The Company's FY16 combined adjusted EBITDA totaled $2.99 billion, a 9% increase over FY15 combined adjusted EBITDA of $2.74 billion.
Selected Performance Information
Combined information presented in this section assumes Marriott's acquisition of Starwood and Starwood's sale of its timeshare business had been completed on January 01, 2015.
During Q4 2016, Marriott added 116 new properties (22,043 rooms) to its worldwide lodging portfolio. Ten properties (2,450 rooms) exited the system during the reported quarter. At year-end, Marriott's lodging system encompassed 6,080 properties and timeshare resorts with nearly 1,191,000 rooms.
At year-end, the Company's worldwide development pipeline totaled 2,493 properties with more than 420,000 rooms, including 892 properties with roughly 161,000 rooms under construction and 218 properties with nearly 34,000 rooms approved for development, but not yet subject to signed contracts.
In Q4 2016, Marriott's worldwide comparable system wide constant dollar RevPAR increased 0.8%. The Company's North American comparable system wide constant dollar RevPAR increased 1.1%, and international comparable systemwide constant dollar RevPAR increased 0.2% for the same period. For FY16, Marriott's worldwide comparable combined systemwide constant dollar RevPAR increased 1.8%. North American comparable combined systemwide constant dollar RevPAR increased 2.3%, and international comparable combined systemwide constant dollar RevPAR increased 0.7%.
At year-end, Marriott's total debt was $8,506 million and cash balances totaled $858 million compared to $4,107 million in debt and $96 million of cash at year-end 2015.
The Company repurchased 4.3 million shares of common stock in Q4 2016 at a cost of $348 million at an average price of $80.11. For FY16, Marriott repurchased 8.0 million shares of its stock for $573 million at an average price of $71.55.
For Q1 2017, Marriott expects comparable systemwide RevPAR on a constant dollar basis for the combined Company to increase 1% to 3% in North America and worldwide. The Company assumes Q1 2017 total fee revenue will total between $740 million to $750 million, flat to up 1% on a y-o-y basis. The Company estimates that incentive management fees will decrease roughly 10% on a y-o-y basis largely due to deferred fees recognized in the prior year, renovations, and timing. Marriott expects Q1 2017 owned, leased, and other revenue, net of direct expenses, could total $60 million to $70 million, a 19% to 30% decrease compared to combine Q1 2016 results of $86 million.
For FY17, Marriott anticipates gross room additions of 6% net. The Company assumes FY17 total fee revenue will total $3.18 billion to $3.25 billion. Marriott expects FY17 owned, leased, and other revenue, net of direct expenses, could total $345 million to $360 million, a 16% to 19% decline compared to combined 2016 results of $426 million. Marriott expects FY17 adjusted EBITDA could total $3.08 billion to $3.18 billion.
On Monday, March 06, 2017, the stock closed the trading session at $86.72, marginally fell 0.08% from its previous closing price of $86.79. A total volume of 2.11 million shares have exchanged hands. Marriott International's stock price advanced 9.02% in the last three months, 23.34% in the past six months, and 27.76% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 5.25%. The stock is trading at a PE ratio of 32.31 and has a dividend yield of 1.38%.
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