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Marriott Plans To Open More Than 1,700 Hotels Over The Next Three

(RTTNews) - Marriott International (MAR) said it will present the company's three-year growth plan, which includes opening more than 1,700 hotels around the world, at its meeting with institutional investors and security analysts at the New York Marriott Marquis.

Marriott noted that it will outline its plan to add between 275,000 and 295,000 rooms by 2021, supported by the strength of its record 478,000-room pipeline, including roughly 214,000 rooms already under construction.

Marriott said it will disclose that its new room openings during this period could contribute $400 million in fee revenue in 2021 and $700 million annually when stabilized. The company's three-year growth plan assumes, but does not forecast, comparable hotel revenue per available room (RevPAR) growth of 1 and 3 percent, compounded annually.

Given the assumptions for its three-year plan, the company could produce earnings per share of $7.65 to $8.50 by 2021, a compound growth rate of 11 to 15 percent over 2018 adjusted results; Adjusted earnings before interest, taxes, depreciation and amortization increasing by 6 to 9 percent compounded, with net income increasing by 5 to 8 percent compounded, each compared to adjusted results in 2018; Cash available for shareholders could total $9.5 to $11 billion for the three years (2019 through 2021).

The company said shareholders could see $1.9 to $2 billion in dividends, assuming a continued 30 percent payout ratio, and $7.6 to $9 billion in share repurchases over the three-year period.

The company said it will also discuss its success improving the Sheraton brand. With more than 155,000 rooms, Sheraton is the company's most geographically diverse brand and the company's third largest brand globally measured in both rooms and fees.
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