Marriott International Q4 profit up 21%
Marriott International reported a significant increase in profits as the fourth quarter of 2016 closed on December 31, concluding with a net income of $244 million. The 21% increase from the previous year coincides with the hospitality group’s recent addition of Starwood to their current portfolio.
The monumental $12.2 billion deal marked the debut of the largest hotel conglomerate in the world, with counts The St. Regis, The Luxury Collection and W Hotels now within the Marriot circle.
As for full year 2016, net income was reported at $780 million – a slight decrease from the previous year’s $859 million. Costs and charges related to the merger totaled at $136 million, including costs for integration, transaction, severance and retention.
Despite the tiny drop, Arne M. Sorenson, president and CEO of Marriott International feels optimistic about the group’s long-term prospects.“We added 11 leading brands to our portfolio as a result of the acquisition and welcomed the 6,000th hotel to our system,” said Sorenson.
“Our strategy of managing and franchising hotels under solid, long-term agreements is proven. Over the years, we’ve shown that this business model delivers meaningful growth in the number and variety of choices for our guests globally, while generating strong sustainable cash flow.”