MARRIOTT INTERNATIONAL’S MEA INVESTMENT RETURNS POSITIVE Q2 RESULTS
• Q2 RevPAR excluding Egypt improved 7% YOY
· Occupancy growth of 4.4% YOY
· Overall Q2 RevPAR improved by 3.9% for Middle East and Africa
August 20, 2014, Dubai, UAE: Marriott International’s Middle East and Africa (MEA) investment and expansion plans are reaping strong rewards as the hotelier reports positive second quarter (Q2) results. RevPAR excluding Egypt improved 7% YOY and was driven by occupancy growth of 4.4% YOY. Overall, Q2 RevPAR improved by 3.9% for MEA including Egypt.
The results include the recently acquired Protea Hospitality Holding for the first time since the hotelier’s acquisition at the start of the year. The total number of hotels now stands at 155 with 23,000 rooms across eight brands; The Ritz-Carlton Hotel Company, JW Marriott Hotels, Marriott Hotels, Renaissance Hotels, Protea Hotels, Marriott Executive Apartments, Courtyard by Marriott and Residence Inn by Marriott.
Commenting on the company’s performance, Alex Kyriakidis, President and Managing Director of Marriott International, Middle East and Africa, said: “On the 1st of April, we completed our acquisition of Protea, whereby we leap-frogged our competition to become the number one hospitality company in Africa and second largest operator across the Middle East and Africa. The positive results reaffirm the growing popularity of our brands across the region and the successful integration of Protea into the Marriott family.”
During the first quarter of the year Marriott International launched the Al Jaddaf Marriott Hotel Dubai and Marriott Executive Apartments Al Jaddaf Dubai helping to strengthen its hold on the UAE market. The JW Marriott Marquis Dubai has also continued to perform exceptionally well witnessing strong demand since the start of 2014; demand has subsequently exceeded supply enabling the hotel to bring its total operational room count to 1,500 in June – ahead of schedule.
In the second quarter two Protea Hotels were also opened including Protea Hotel Lusaka Tower, Lusaka, Zambia (April) and the one just last week in Lagos Nigeria, the Protea Hotel Select Ikeja, Lagos –August 2014. The iconic Riyadh Marriott Hotel, the first ever Marriott in the Middle East was also re-launched in March.
Marriott International’s signature business and leisure brand, Marriott Hotels, also continues to grow in popularity. The brand announced the opening of a new property in Doha’s West Bay district, where three hotels currently known as the Renaissance Hotel, Courtyard by Marriott and Marriott Executive Apartments Doha City Center become one. The Marriott Marquis City Center Doha Hotel is in line with Marriott Hotels’ new brand strategy and “Marquis” is a brand extension of the Marriott Hotels and JW Marriott Hotels brands. It is given to select properties that are distinguished by their exceptional offerings and iconic locations, including expansive meeting facilities, multiple restaurants, and grand public spaces. The Marriott Marquis City Center Doha Hotel with its 580 guest rooms, 1,200 square metres of flexible meeting space, and breath-taking views of the Doha skyline and Arabian Gulf is no exception.
Kyriakidis added: “Whilst the Protea deal kept us busy during the first three months of the year, the second quarter was also marked by new hotel openings and a plethora of new deals. These signings further boost our growing pipeline and instil a strong belief in our vision to become the number one hotelier in MEA by 2020.”
Looking ahead Marriott International has several openings in the pipeline. These include the Residence Inn by Marriott Kuwait City in September and Residence Inn by Marriott Jazan, KSA in October. With the introduction of these properties the firms total operational Residence Inn branded hotels will rise to three across MEA boosting its offering to the mid to long-term business traveler market which is seeing a boom..
Globally Marriott added 162 new properties (18,729 rooms) to its worldwide lodging portfolio in the 2014 second quarter, including 113 properties (10,016 rooms) related to the Protea transaction. Nine properties (1,134 rooms) exited the system during the quarter. At quarter-end, the company’s lodging group encompassed 4,087 properties and timeshare resorts for a total of nearly 697,000 rooms.
The company’s worldwide development pipeline increased to roughly 1,300 properties with nearly 215,000 rooms at quarter-end, including 213 properties with more than 30,000 rooms approved for development, but not yet subject to signed contracts.
Marriott International,Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,000 properties in 78 countries and territories. Marriott International reported revenues of nearly $13 billion in fiscal year 2013. The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands, including: Marriott Hotels, The Ritz-Carlton, JW Marriott, Bulgari, EDITION, Renaissance, Gaylord Hotels, Autograph Collection, AC Hotels by Marriott, Moxy Hotels (expected opening in 2014), Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, Towne Place Suites, Protea Hotels, Marriott Executive Apartments and Marriott Vacation Club timeshare brand. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 45 million members. For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.