MARRIOTT INTERNATIONAL - MIDDLE EAST AND AFRICA Q3 RESULTS INDICATE STRONG GROWTH POTENTIAL
YTD comparable company-operated RevPAR increase of 10% driven by ADR growth of 9%
- MEA showing positive occupancy indicators with an overall uptake of 0.6% YTD
- Q3 ADR improvement of 13% despite decline in Egypt property occupancy
Dubai, United Arab Emirates – 7 November 2013 – Following positive global third quarter (Q3) results where Marriott International, Inc. (NASDAQ:MAR) saw a 12% increase in net income compared to Q3 2012 the company announces its Middle East and Africa (MEA) figures. Year-to-Date (YTD) the hoteliers saw RevPar improvements of 10% across comparable company-operated properties driven by a 9% increase in Average Daily Rate (ADR) despite a decline in occupancy due to the challenging market conditions in Egypt Year-On-Year (YOY) occupancy fell 7% resulting in a RevPAR fall of 3% even though regional ADR improved 13% in Q3.
Alex Kyriakidis, President and Managing Director of Marriott International, Middle East and Africa, said: “Whilst Egypt continues to remain a difficult market, overall regional growth indicates the market is moving. The results reflect positively on Marriott Internationals investment in the region and reaffirm the strength of the Marriott brand to business and leisure travelers.
“MEA remains a big growth market for us and we are wholly committed to expanding our footprint across the network.”
Marriott International recently announced several new properties to its regional portfolio including plans for a new Renaissance Dubai Downtown Hotel in the UAE which is scheduled to open in 2015. The company has a strong pipeline of upcoming properties in Africa and preparing to open three new hotels in Ethiopia, Ghana and Rwanda in addition to the re-opening of the JW Marriott Hotel Tripoli in Libya in 2014. The new openings bring the total number of announced properties in the African portfolio to 22 hotels in nine different countries by 2018.
“According to the World Tourism Organization (UNWTO) the Middle East saw a 13% increase in visitors whilst travel to Africa increase 4% in the first nine months of the year. Both figures are reflective of the region’s growing potential as a business and leisure destination,” added Kyriakidis. “Our pipeline is reflective of that increased demand and place Marriott International in prime position to be the hotel of choice for travelers.”
In total, Marriott International manages 12,237 rooms across 42 properties across the Middle East and Africa and the numbers are expected to double over the next five years. With a total of 48 new hotels in the pipeline adding 11,567 rooms and an additional 12,000 jobs, the figures demonstrate the company’s belief in the region’s economic potential.
Globally, at the end of the third quarter, the company’s worldwide pipeline of hotels under signed contracts increased to over 144,000 rooms compared to nearly 141,000 rooms in the second quarter of 2013. In addition, the company has more than 31,000 rooms approved, but not yet subject to signed contracts, compared to over 15,000 rooms in the second quarter of 2013. Nearly 6,600 rooms were added during the quarter, including over 2,500 rooms converted from competitor brands and roughly 2,100 rooms in international markets.
Marriott Revenue totaled nearly $3.2 billion in the 2013 third quarter compared to revenues of over $2.7 billion for the third quarter of 2012.
Marriott International, Inc. (NASDAQ: MAR) is a leading lodging company based in Bethesda, Maryland, USA, with nearly 3,900 properties in 72 countries and territories and reported revenues of nearly $12 billion in fiscal year 2012. The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands. For more information or reservations, please visit our web site at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.